After an unsuccessful bidding campaign last year, the Illinois Gaming Board (IGB) is set to approve additional operators for the state’s burgeoning online sports betting market. At their regular meeting on Thursday, July 27th, the board members approved Betway’s bid.
The news comes just two months after Fanatics announced its agreement to acquire PointsBet’s American operations in a $150 million buyout deal. The move will see Fanatics expand into Illinois and thirteen other states where PointsBet is currently operating.
Circa has already received IGB approval and could launch as the 8th online sportsbook in Illinois before the NFL season kicks off. The Nevada brand has also struck a deal with Full House, Inc., and plans to open a retail sportsbook at The Temporary by American Place Casino.
The IGB has also approved an initial sports betting license for Hard Rock International through its Rockford Casino. The permit authorizes Hard Rock to conduct online and in-person wagering in the state.
European betting firms Bet365, Pinnacle, and Unibet are among the potential candidates for the remaining two online-only sports wagering licenses in Illinois, with the IGB expected to deliberate on other bids in the coming months.
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Illinois Market Primed for Added Competition
Illinois has seen only moderate competition in online sports betting, with only seven active operators. BetRivers was the first to launch its online sportsbook in June 2020, a year after Gov. J.B. Pritzker signed a bill legalizing sports betting in Illinois into law.
DraftKings and FanDuel launched their sports betting mobile apps in August 2020, followed by PointsBet a month later. Barstool Sportsbook entered the market in March 2021, with Caesars Sportsbook and BetMGM Sportsbook following suit in March 2022.
IGB’s previous attempts to attract competent bidders for an online-only sports betting license have not been successful, and there are at least two major reasons for this. First, a winning bidder must pay a $20 million licensing fee, which can be prohibitive for some low to mid-tier operators.
More noteworthy, like any other state with legal sports betting, Illinois is dominated by Fanduel and DraftKings. Together, the two sportsbooks command more than 60% of the market share, which makes it difficult for new operators to gain enough foothold to justify the hefty investment.
However, the Illinois market is primed for additional sports betting operators with the potential to disrupt this duopoly. IGB’s upcoming license approvals will likely introduce fresh competition beyond recently announced deals bringing Circa Sports and Fanatics to the Land of Lincoln.
Betway Emerges as the Sole Winning Bidder
Betway, a Digital Gaming Corporation (DGC) subsidiary, emerged as the only winning bidder for one of the three internet-only wagering licenses. The operator met IGB’s minimum suitability criteria for a license.
Initially, Betway and J&J Ventures were the only two applicants who bid before the March 1st deadline. The Effingham video game terminal operator withdrew in July, leaving Betway as the only applicant.
This isn’t the first time DGC IL has been an applicant for IGB’s internet-only sports betting license. It was among the four operators who originally applied in 2021 when IGB initiated the bidding process.
Malta-based Tipico missed the December 2021 application deadline and was disqualified with Fubo Gaming. Tekkorp, connected to Mexican gaming company Caliente, also ended its pursuit in October 2022.
DGC IL withdrew its first bid immediately after the first round of applications in 2022. Now, having been approved by the IGB, the operator will have to pay $20 million for the license and get vetted before obtaining final approval to commence operations in Illinois.
Owned by Super Group, Betway currently has operations in eight states, including Colorado, Virginia, Pennsylvania, Arizona, Iowa, New Jersey, and Indiana. It’ll soon launch in Massachusetts, pending final approvals. Like other online sports betting operators in Illinois, it must also pay a $1 million license renewal fee every four years to continue operating in the state.
Betway’s award-winning platform features a wide variety of sports betting markets, from major sports leagues like the NFL to niche activities like snooker, eSports, ping-pong, and cycling. It’s also best known for offering decent bonuses with solid odds for key sporting events.
Bet365 is Another Favorite for New License
IGB is contemplating reopening bidding for the third round of applications for the remaining two licenses. Based on past performance and market strategy, European sports betting giant Bet365 appears well-positioned to be a leading candidate for one of the online-only licenses.
Bet365 has the financial muscle to withstand the IGB’s $20 million licensing fee. The operator’s financial health is so robust that it paid its top exec, Denise Coates, £260 million (over $330 million) in 2022, according to Financial Times.
The UK-based gambling firm has proven capable of gaining meaningful market share even in crowded markets like Ontario, where nearly 70 operators compete. Bet365 operates sportsbooks in Iowa, Colorado, New Jersey, and Ohio. Its global brand recognition and experience position the operator to succeed in Illinois.
Other Potential Operators Include Unibet, Pinnacle, and More
Several well-established sports betting operators could also vie for the remaining online-only licenses.
Unibet, well-positioned to take on FanDuel and DraftKings in Illinois, may apply given their existing U.S. infrastructure. It has previously applied for a license from IGB. The operator currently has a sportsbook presence in Indiana, Arizona, Virginia, Pennsylvania, New Jersey, and Ontario.
With a significant sportsbook presence in Canada, Pinnacle may seek to expand its regulated footprint in North America. The former black market operator has proved to be a formidable competitor in the legal sportsbook market.
Emerging companies like micro-betting pioneer Betr and betting exchange Prophet could utilize these licenses to introduce novel product offerings.
Regional players Fox Bet and Hard Rock seem less likely to pursue an online-only license given their existing retail casino ties, but they cannot be ruled out entirely.
Both online and mobile options are permitted, opening vast geographic reach. These factors make breaking into the Illinois market attractive for qualified bidders willing to invest.
Wrapping Up
The entry of well-established strong operators, such as Betway and Bet365, into the Illinois market, could challenge DraftKings and FanDuel duopoly by appealing to different customer segments. Regional players like Hard Rock and Circa may leverage local ties for bettor acquisition. Novel products from Betr or Prophet Exchange may attract discerning bettors.
