Investors who have ventured into sports betting in the state of Illinois agree that it is a major money maker. For mobile and retail sportsbooks attached to casino brands and racetracks, the revenues are well into the billions; the market has generated over $1 billion in revenue since it was launched in 2020. Even though the law of Illinois permits sportsbooks to establish operations at professional sports venues, pro franchise operators have been included in the list of sports betting license holders. Well this is in the pipeline, it has not actually happened.
According to a recent bill that was filed in the Illinois House of Representatives, professional sports teams will be allowed to seek Illinois sports betting licenses by way of application if they wish to be part of the gambling action. The bill which was proposed on Nov. 21 by Chicago-area State Rep. Lamont J. Robinson, Jr., states that the law would be adding pro teams as eligible sports wagering license holders of the state.
Under the existing structure, pro franchises are permitted to run operations through seeking sponsorships with sports betting brands. The Robinson bill proposes that teams be permitted to take part as independent sports betting license holders. In the event that there is more than one tea playing their home game at the same venue, as is the case at both United Center and Soldier Field, the respective franchises would be required to come to a consensus on how licensing would take place. In certain instances, the teams themselves, rather than the venues, would be required to apply for the sports betting license (approved by the facility).
This is a new challenge for a jurisdiction where in-person sports betting is expected to be launched in two Chicago pro sports venues before the end of the coming year. For the two venues, United Center (FanDuel) and Wrigley Field (DraftKings Sportsbook), it is expected that in-person sportsbooks would be opened in collaboration with operators in 2023. This is, however subject to a final nod from the Illinois Gaming Board.
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Agreements at the Center of Proposed Legislation
The Chicago Blackhawks and Chicago Bulls constitute the pool of seven Illinois teams that play in the major league and will most likely be required to work out some revenue-sharing agreement if Robinson’s proposal will advance. Both teams have United Center as their home turf. Some of the other teams in the Illinois major league and their home venues are listed below;
- Chicago Cubs (MLB) – Wrigley Field
- Chicago Bears (NFL) – Soldier Field
- Chicago White Sox (MLB) – Guaranteed Rate Stadium
- Chicago Fire FC (MLS) – Soldier Field
- Chicago Sky (WNBA) – Wintrust Arena
The state of Illinois is edging closer to in person betting and especially at its seven largest pro sports venues following the lifting of the city of Chicago lifted city ban on sports betting last December. Other than United Center and Wrigley Field, there could very soon be plans to establish sportsbooks in Soldier Field, Guaranteed Rate Field, and Wintrust Arena.
The market is large enough for everyone
By allowing professional sports teams to apply for sports betting licenses, Illinois is in the pipeline to replicate the revenue model that seems to be working really well in Ohio and Arizona. This idea has been used successfully in Arizona and Ohio are in hot pursuit, set to launch retail and mobile sports betting at the start of 2023. Much of the parameters that render Ohio and Arizona to be great candidates for this model are true for Illinois as well; for sure the state has sufficient revenue to fine the pockets of all the investors.
It has now been 2 years since closure of casinos occasioned by the pandemic stalled new player registration but this has not deterred Illinois from being among the top performers in terms of sports betting revenue. The overall sports betting handle for the state amounted to $8.5 billion the 2022 financial year. This makes it the third-largest sports betting market after New York and New Jersey, as reported by the Chicago Tribune. The revenue that was raised from that particular handle alone topped $600 million – considering that all of the bets so far placed via retail and mobile sportsbooks which are licensed to casinos and horse tracks.
In September 2022, Illinois was among a handful of states that passed the $1 billion mark in sports betting revenue summed up from the US Supreme Court ruling of 2018 that sports betting should be legalized. Betting services in Illinois can be accessed through 10 apps while the in person sports betting option can be explored from two horse tracks and seven casinos. It is evident that the potential is there and the cake is better shared than hoarded.
Apart from tracks, sports venues and casinos licensing, the Illinois sports betting law of 2019 allows the existence of up to 3 independent online licenses that are not tied to any location. The lawmakers of the state have the provision to add teams to the list of potential licensees from the first month of 2023.
As the public anticipates for the return to work of the Illinois General Assembly in January, the beneficiaries of this new proposal are rooting hard for their point of view to be considered. The main advantage of this scheme will be the creation of direct employment; teams will be able to make their own money which they can then budget according to their growth vision.
Final Thoughts
Sports teams have been around for a long time and truth be told, they have been used by various entities to mint money from the public. For once, here is an arrangement that puts the dollars directly into the pockets of those who literary sweat for it. Passing this bill will definitely cause teams to work harder, not only at playing but also at promoting their sport.
