Sports betting in Illinois continues to generate millions in revenue. However, many experts agree that the market’s potential is still limited due to the lack of real money online betting. Based on data from the board, profits in the state topped the $2 billion mark this July, the first time to surpass the record since the state legalized sports betting.
Apart from Nevada, the only state that has managed to surpass this figure are New York and New Jersey. According to the board, most of the sports betting action takes place online. So why does Illinois appear opposed to online sports betting despite the demand?
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Betway recently withdrew its online license application
Until a few weeks ago, Betway was the only applicant for the state’s online-only sports wagering license. The IGB announced in July that it had picked Betway to receive the 1st of 3 online-only sports betting licenses. The state’s 2019 gambling law gives IGB the authority to award close to 3 such licenses.
The beauty of Illinois’ online-only sports betting license Is that it does not require the recipient to team up with a land-based gambling entity such as a casino, off-track betting parlor, or racetrack. For that reason, Betway would not have had to share its profits with such a strategic collaborator. In the same breadth, this class of license is not allowed to accept in-person bets in the state.
As the name suggests, an online-only class of license is confined to online sports bets. It should be noted that the cost of an online-only betting license is also much higher at a cool $20 million. The IGB has opened up the applications for online-only licenses once before in November 2022. By the time the application period has been closed on March 2023, the board had received 2 applications.
One was from Betway. However, the IGB refrained from naming the other applicant. Sadly, Betway sent shockwaves in the market when it withdrew its application shortly after its submission. At the time, the brand did not provide any explanation for the move. When this year’s application process opened once again, Betway stepped back into the fray as the winner yet again.
Although this license would effectively put Betway in one of the most profitable markets for online betting in the country, the brand announced that it was pulling out of the application process for the second time. Betway boasts existing operations in several lucrative sports betting states including New Jersey and Pennsylvania.
For the second year in a row, the IGB has come up empty when several gambling companies applied for 3 online licenses with none making it through the selection process. With no qualified bidders or applicants, the supplemental competitive bigging process for Illinois’ online-only master sports betting license will be concluded.
Currently, Illinois punters have 11 sportsbooks to choose from including 2 that debuted in the last few months. This August, 9 sportsbooks in Illinois generated more than $664 million in bets and produced gross revenue of almost $47 million. The state permanently eradicated its in-person registration requirement for sports gambling in March 2022.
This, therefore, opened the door in Chicago for national players such as DraftKings and FanDuel to join the market by teaming up with downstate casinos. Most of these big-name players in the national sports gambling arena have opted for this collaborative path to make their mark in the Land of Lincoln.
But why this collaborative approach?
The best way to understand some of these decisions is to take a close look at the legislative framework that controls sports betting in Illinois. When lawmakers in the state laid down their sports betting, they came up with a nuanced strategy that involved creating partnerships with online sportsbook giants and existing land-based casinos.
This nuanced approach was intended to strike a balance, leveraging the expertise and recognition of bigger casino brands while allowing digital casino platforms to extend their reach. This collaboration between sportsbook operators and downstate casinos, has in essence, been a marriage of convenience.
While big operators such as FanDuel boast immense popularity and a massive user base, state law mandates a connection with a retail casino within Illinois for online sports betting to be allowed. In this scenario, local downstate casinos serve as the local partners, providing much-needed retail casino affiliation for these established digital sportsbooks.
For the giants, the marriage of convenience allows the brands to gain a deeper insight into the state’s regulatory framework and market dynamics. Rather than setting up their standalone casinos, which would be quite an expensive undertaking, these sportsbook operators opt to navigate Illinois’ tricky landscape by aligning with local establishments.
This model is not exclusive to Illinois; it mirrors a broader trend seen in various states where legal sports betting has been embraced. The collaboration between national sportsbook giants and downstate casinos in Illinois is more than a legal formality; it’s a strategic maneuver that underscores the evolving dynamics of the sports betting industry.
Will Illinois legalize real money online casino apps soon?
In the complex dance of legislation, the prospect of legalizing real-money online casino apps in Illinois briefly stepped into the limelight earlier this year. However, just like the online-only application process that was concluded recently, the state’s punters were left stunned. So will punters in Illinois soon play slots or blackjack from the comfort of their homes?
Earlier this year, the state’s lawmakers engaged in a legislative dance over the question of legalizing real-money online casino apps. The proposal, which would have allowed Illinoisans to bring the casino to their screens, made headlines and sparked lively debates. However, as the legislative dance progressed, the bill faced a twist of fate, ultimately leading to its rejection.
One key factor in this saga is the intricate web of interests and concerns that often accompanies gambling legislation. The state’s has always maintained its commitment to maintaining the integrity of its existing land-based casinos. These brick-and-mortar casinos have long been a cornerstone of Illinois’ gambling landscape.
As such, any move to legalize online casinos needs to ensure that it complements rather than undermines these brick-and-mortar institutions. In the context of online casinos, therefore, Illinois lawmakers are still gauging the pulse of their constituents, as well as evaluating whether there’s a genuine demand for such digital offerings.
Final Thoughts
As for now, the digital slot reels remain silent, and the virtual cards remain unplayed in Illinois. But who knows, in the unpredictable world of legislation, the next session might bring a new melody, and online casino enthusiasts might find themselves back in the dance. Until then, the casino lights continue to shine brightly on Illinois’ traditional gambling scene.
