All through this year, the state of Illinois, which has been one of America’s most consistent and reliable sports betting destinations, has been working to expand its portfolio of sports betting apps and retail sports betting operators. This move is aimed at solidifying the state’s position as the leading hub for sports enthusiasts and bettors.
Not too long ago in July, The Illinois Gaming Board (IGB) approved licenses for 2 new operators namely Betway and Hard Rock. Hard Rock Bet gained authorization to launch both mobile and retail sportsbooks through its Hard Rock Casino in Rockford. This move marked a strategic expansion for the Hard Rock brand, which made the Prairie State its 6th state of operation.
Hard Rock already has an established presence in Arizona, Indiana, Tennessee, Virginia, and Ohio. By entering the Illinois sports betting market, Hard Rock Bet is poised to tap into a sports betting environment where both online and retail sports wagering options continue to flourish.
Although Hard Rock received approval months ago, the much-anticipated launch of the sportsbook in Rockford has faced numerous delays owing to necessary internal control procedures. The casino, which will be operated by 815 Entertainment and Seminole Hard Rock Digital has been working diligently to meet the requirements set forth by the Illinois Gaming Commission (IGB).
According to the Hard Rock Casino Rockford President, Geno Iafrate, the brand has been working on the last stages with the IGB. Regulatory approvals, certifications, and testing processes have taken longer than expected.
Hard Rock anticipates that its sportsbook will be open before the end of 2023 if everything goes according to plan. The casino’s sportsbook will be located adjacent to its Rock River Bar & Grill, providing a comfortable setting where visitors can enjoy drinks, place bets, and watch games on multiple televisions.
Once operational, the sportsbook at the Hard Rock Casino will add to Illinois’ growing gambling landscape. The state currently boasts 15 casinos and 10 sportsbooks. BetRivers, Barstool BetMGM, PointsBet, DraftKings, FanDuel, and Caesars, currently make up the menu of Illinois’ online sports betting apps.
As the casino industry in Illinois continues to expand, the forthcoming sportsbook at the Hard Rock Casino is poised to offer patrons an immersive and exciting sports betting experience, while also boosting competition in the state. These big established operators have proven that they have deep pockets and high profiles that may pose a risk for new providers such as Hard Rock, which is yet another reason why Illinois has always been a tough market for new entrants.
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Betway also received approval from IGB but things have stalled
As mentioned in earlier paragraphs, the state has been one of the most reliable and successful legal sports betting markets in the country. In September 2023 alone, casinos in Illinois recorded the strongest September revenue month. In September, casinos in Illinois won more than $132.1 million from gamblers.
Betway has been hoping to take advantage of this thriving market. Alongside Hard Rock, the IGB approved Betway’s Digital Gaming Corporation for an online sports betting license in the state. Untethered to a casino or racetrack, the license allows the Betway brand to go online just months after confirming the acquisition of DGC.
This means that the online-only license would allow Betway to operate without teaming up with one of Illinois’ brick-and-mortar racetracks or casinos. This was considered quite the milestone as Betway’s parent company was the only applicant to complete a competitive bidding process for Illinois’ 3 available licenses.
This year was the second time that the IGN attempted to distribute 3 licenses, which come with a $20 million price tag attached for operators. The first bidding process was kickstarted in August 2021 and successfully drew 3 bids. However, 2 ultimately withdrew from the process while a 3rd contestant was disqualified.
Betway was one of the operators that withdrew from consideration during the first bidding process in August 2023 and it did so without explanation. It is unclear what caused the Betway brand to change tunes. But surprisingly, the brand restarted its bidding process in November last year.
During this second round of negotiations, the IGB accepted applications until March 2023 when 2 brands initially submitted their bids. One of the 2 bidders, who is still unknown withdrew from consideration, which only left Betway. Sadly, however, Betway recently announced that it was withdrawing from the state’s online betting market yet again.
The specific reasons for withdrawal from the burgeoning Illinois online sports betting market are not clear. The Illinois Gaming Board administrator, Marcus Fruchter did not disclose any details regarding why Digital Gaming Corp, Betway’s parent company pulled out. As of now, DGC hasn’t made any statements regarding its decision either.
One possible factor for Betway’s flip-flopping can be attributed to the exorbitant costs associated with obtaining an online-only sports betting license in the state. These licenses come with a hefty price tag of about $20 million, making it a massive financial commitment for new operators. This high cost is thought to also have deterred bidders, especially smaller ones that have to compete against the bigger fish.
The competitive landscape of the market hasn’t helped either. Most operators have opted for alternative methods to enter the state including acquiring existing casinos or teaming up with local casinos and racetracks. These strategic partnerships have provided a pathway to market entry while allowing the sharing of profits with local gambling establishments and providers.
Had this application been approved by the IGB, Illinois would have been the 9th state in which the brand operates. The Betway brand already has a strong presence in Virginia, Arizona, Iowa, Ohio, Colorado, and Indiana. Betway also offers both online casino and sportsbook offerings in Pennsylvania and New Jersey.
Final Thoughts
Overall, 2023 marked a year of growth and evolution for sports betting in Illinois. With an expanding array of sports betting apps and retail operators, the state has continued to offer a dynamic and engaging platform for sports enthusiasts in the state, further solidifying its reputation as a reliable and exciting destination for sports betting enthusiasts.
