Does Anyone Have $20 Million? Online-Only Sports Betting License Applications Now Available In Illinois

Applications for three online-only sports betting licenses have been published by the Illinois Gaming Board( IGB ). Certificates cost$ 20 million each, and applications are due by Dec. 3.

When the IGB issues a license exclusive to mobile platforms, the need for in-person registration will cease. In the event of any applications, the IGB is obligated to declare the presence or absence of eligible bidders. This announcement is expected to occur around December 3.

The IGB is required to identify the successful bidders within 90 days following this. Subsequent to this, the agency must conduct separate investigations prior to issuing a license. If everything proceeds as expected, it appears that in-person registration would cease in the first half of 2022.

However, it’s improbable that any operator will invest the necessary $20 million to secure a mobile license.

Zalewski doesn’t anticipate people bidding for a mobile-only license.

In June, Illinois House Representative, Michael J. Zalewski, expressed to Play Illinois his doubts about anyone being willing to pay the steep $20 million fee required for an online-only license. If this is the case, it could indefinitely postpone the reestablishment of online registration. Zalewski mentioned that he often receives requests from operators for the Illinois Legislature to reduce the fee.

A standard sports betting license in the state is capped at $10 million. This substantial $10 million limit has noticeably impacted the potential bidders, which is different from what legislators had anticipated when crafting the Sports Wagering Act.

The mobile-only licenses were initially intended as incentives to lure DraftKings and FanDuel into the Illinois market. However, DraftKings and FanDuel discovered loopholes, collaborating with a casino and a racetrack to gain access to the market.

The COVID-19 pandemic forced Illinois Gov. JB Pritzker to suspend in-person registration for over seven months, leading to a boom in business for DraftKings and FanDuel in Illinois. If they don’t bid for the mobile-only licenses, then who will?

Furthermore, any bidder who shells out $20 million for a license will be significantly supporting companies like DraftKings, FanDuel, Barstool, etc. It’s easy to see why this might not be an appealing concept.

That being said, Illinois currently holds the second or third position in the US for monthly sports betting revenue. It’s possible that someone might find the $20 million price tag to be justifiable.

Over the coming months, the most significant story in Illinois sports betting will revolve around whether or not someone bids on the license. The outcome will have a substantial ripple effect in either case.

Illinois handle beginning to be impacted by in-person membership?

Despite sports betting operators in Illinois generating an impressive revenue of $48.2 million in June, the handle fell to $476.5 million. This marked the lowest figure since November 2020.

Pritzker’s website membership was terminated in April. Consequently, Illinois was just a couple of months away from incorporating rural clients in June. The plan might be rapidly gaining traction in the Land of Lincoln.

Therefore, the situation is prompting a return to electronic registration. It can be assumed that a reduction in the price may be considered if no one bids for the online licenses priced at $20 million.

Of course, that might require time. Moreover, it could potentially cost money for Illinois activity bettors.