No Penalty On The Play: DraftKings, FanDuel Avoid Wait For Illinois Licensure

The Illinois Legislature attempted to penalize companies such as DraftKings and FanDuel with its latest gambling expansion law, but the effort to limit online sports betting users has proven unsuccessful.

DraftKings and FanDuel have been granted licenses to offer online betting in Illinois, along with two other regional players. The delay in issuing online-only licenses raises questions about the reasoning behind it.

FanDuel and DraftKings are authorized for online sports betting in Illinois.

On Friday, the Illinois Gaming Board (IGB) approved management services provider permits for both companies, allowing them to run sportsbooks for Illinois master license holders.

The timing of their interaction, whether online or in person, is unclear. However, it may be necessary for both users to be online at the same time.

Currently, Governor JB Pritzker’s suspension of the in-person registration requirement for online betting is still in effect. This means that sportsbooks in the Land of Lincoln should start operations as soon as possible to have more time to collect online account registrations.

While Illinois residents may find it easy to quickly update desktop and mobile websites, updating Android and Apple applications can be more difficult. Adapting to changing state regulations may necessitate businesses to develop custom apps for each platform.

The increasing competition is putting added pressure on DraftKings and FanDuel in the market. PointsBet received approval from the IGB last Tuesday and is gearing up to enter the Illinois market in the near future.

However, the most intriguing part of the story lies in the characters’ ability to steer clear of the “penalty box,” a situation that can only be fully grasped with a brief history lesson.

Why did the Illinois Legislature support DraftKings and FanDuel?

In 2015, Lisa Madigan, the Attorney General of Illinois at the time, stated that daily fantasy sports contests were classified as illegal gambling. However, DraftKings and FanDuel continued to operate without concern.

Instead, they challenged Madigan’s bluff by accepting paid comments in IL, taking a risk that Madigan would not pursue any charges.

Even though DraftKings and FanDuel were in the right, they still had to deal with substantial consequences that had a noticeable impact on the development of betting laws in 2019.

Politicians in Illinois have mandated that online casinos postpone operating independently for almost two years, using a distinct approach to enforce this.

In Illinois, it is legal for individuals to obtain up to three online-only sports gambling certificates, which do not require supervision from an IL expert license holder. These certificates are applicable to gambling, off-track bookmakers, racing, and sports venues.

Despite this, the IGB cannot issue any licenses until 540 days after the first retail sportsbooks opened in IL. The countdown began on March 9, when the Rivers Casino accepted the first legal bet in IL.

Originally, DraftKings and FanDuel faced restrictions and penalties in their operations. However, by obtaining permission to oversee sports betting for a master permit holder, both companies may now have the ability to circumvent these limitations.

DraftKings has successfully obtained market access through a partnership with the Casino Queen in East St. Louis. Meanwhile, FanDuel remains available for potential partnerships.

If the current pattern persists, the leading online sports betting companies will likely secure their positions ahead of the three upcoming online-only license opportunities in Illinois, offering a diverse range of betting options for customers.