It’s possible that the in-person registration requirement for Illinois online sports betting may soon be a thing of the past.
Recently, the Illinois Gaming Board opened up applications for three online-only sportsbook licenses. If just one is accepted, the in-person sports betting registration requirement will be over.
The applicants must apply and bid on an online sports betting license by December 3, 2021. Also, applicants must meet certain minimum requirements to qualify for a license under the Illinois Sports Wagering Act.
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An Illinois Online Sports Betting License is Not Cheap
Within 90 days, The Illinois Gaming Board plans to announce three winning bidders for the available online sports betting licenses. Once an operator wins a bid, they will pay a $20 million license fee, and every year, a $1 million renewal fee. Once one of these $20 million licenses is awarded, the in-person registration requirement will come to an end.
However, according to the gaming board, the cost of a typical Illinois sports betting license, such as the ones that FanDuel and DraftKings hold, only cost $10 million. That puts the possibility of a successful bid into question.
Illinois Sports Betting Handle Down
Selling a $20 million license, and ending the in-person registration requirement would ultimately be a benefit for both the state’s tax coffers and the sportsbooks operators. Since March’s high of $633.6 million in handle, every month has seen a steady decline.
April’s handle slid by nearly $100 million to $536.6 million. During May, it fell to $506.3 million, and by June, sports betting handle bottomed out at $476.5 million.
But despite the falling numbers, Illinois still ended with the country’s second-highest sports betting handle in April and May, and third in June. Once in-person registration is a thing of the past, Illinois’ sports betting handle would likely rebound.
Driving Across Stateline is an Option for Some Illinoisans
For some state residents, Indiana or Wisconsin is a closer drive than an in-state casino affiliated with an online sportsbook. Some sports betting apps, like FanDuel and DraftKings, will work in multiple states, while some, like William Hill, have separate apps for each state.
Unfortunately, bettors can sign up and download the apps in another state, but once back in Illinois, geofencing will stop it from working. However, if you do live close to a bordering state that offers sports betting, you could go to a sports bar to watch the game and place bets.
For example, East Chicago, Indiana is only 23 miles from Chicago, Illinois. In 35 minutes, a Chicago resident could be at a sports bar in East Chicago, placing bets and watching the game. Until the in-person registration requirement is repealed, that is still an option.
Ban on In-State Collegiate Team Wagers Also on the Way Out
Very soon, betting on in-state college sports could be legal, now that an amendment to Illinois House Bill 3136 has passed. All that is needed now is the signature of Governor JB Pritzker. Also, in-state college betting is just a pilot program, for now, set to end on July 1, 2023. But that could change if the Illinois State Assembly votes to extend it.
However, this only applies to wagers made at a retail sportsbook, and not online. Also, only “Tier 1” in-state bets will be accepted, meaning that bets can only be placed on the final score of the game. Bets must also be placed before the start of the sporting event. Finally, no college wagers are allowed on an individual college athlete’s performance during an in-state game.
The Future of Sports Betting in Illinois
Sports betting, both retail and mobile, are still new in Illinois, and state legislators are still fine-tuning the regulations. But despite a rocky start, the state has climbed quickly to become one of the top three sports betting states.
For one thing, the state is counting on sports betting to help fund a new infrastructure program, to rebuild highways, streets, and bridges. State officials should do everything possible to ensure the success of sports betting, such as the recent move to drop in-person registration.
Of the state’s $5 billion in sports betting handle, $4.7 billion of that was paid to winners. That left the sportsbooks an adjusted gross income of $380 million. When taxed at 15%, that generated $57 million for the state tax coffers. And this is just the beginning of sports betting in Illinois; it’s estimated that that sum could soon double. If the state handles that money correctly, it could go a long way in fixing Illinois’ roads.
