DraftKings Completes Workaround To Get Online Sportsbook Live In Illinois

It seems that the lawful measures the state of Illinois created to punish DraftKings have largely failed. The DraftKings & rsquo workaround has been successfully completed as a result of Casino Queen’s recently announced name change.

The Casino Queen will undergo a rebranding and will be known as “DraftKings at Casino Queen.” Although it might appear as a minor shift in terms, it carries substantial significance for the sports betting market in Illinois.

Why the title shift for Casino Queen is so significant

Understanding the impact requires a short history lesson.

In 2015, Lisa Madigan, who was the Illinois Attorney General at the time, declared that online daily fantasy sports contests, such as those offered by DraftKings to residents of Illinois, were considered illegal gambling.

Despite this, DraftKings continued receiving paid comments from customers in Illinois. Even though no regulatory bodies in Illinois tried to prosecute any DraftKings’ executives, the state did not forget.

The Illinois Legislature imposed a “penalty box” on DraftKings when they created the most recent gambling expansion law. DraftKings was faced with a decision – to either partner with a brick-and-mortar sports gaming establishment in Illinois or wait over three years to operate independently.

This past May, the strategy became slightly more challenging.

The Illinois Gaming Board (IGB) formulated a regulation stating that online sports betting platforms linked to physical facilities must prominently display the branding of those facilities.

The initial phase of the plan to penalize DraftKings was somewhat successful. Rather than waiting to secure one of the state’s three online-only licenses, DraftKings teamed up with the Casino Queen in East St. Louis.

However, at that time, the requirement for packaging also posed a problem. Given the circumstances, the main product of the IL sports gambling app and website was set to be Casino Queen, not DraftKings. This consequently devalued DraftKings.

By including DraftKings in the center name, the issue is circumvented. This allows DraftKings to integrate its brand into an upcoming IL sports betting app and website.

However, the main question still remains for most Illinois residents and visitors. It’s about when the state will be able to allow online and retail betting through DraftKings.

There is still no official launch date for DraftKings & rsquo in Illinois.

The press release announcing the name change did not provide any details regarding the opening of either betting channel. However, both partners involved in the deal have already completed tasks on their to-do lists.

The Casino Queen has already requested a king passport. However, it is uncertain when the IGB will grant it. Until that happens, DraftKings cannot contemplate either solution.

When the IGB approves the master license, DraftKings may have the ability to fast-track. Earlier this month, the IGB granted approval for DraftKings’ management service provider license.

This indicates that DraftKings will manage sports bets on behalf of its business partner in this role. The true genius may lie in how DraftKings largely secured access to Illinois, which could have resulted in substantial cost savings.

Millions of dollars may have been saved by DraftKings.

According to the regulations in Illinois, one of the three separate, exclusively online permissions is priced at $20 million. However, the license for a management services provider is only valid at a cost of $1 million.

Clearly, DraftKings will incur extra costs to penetrate the Illinois market. These may include the development of intelligent programs adapted to the local condition. Additionally, they may likely bear some of the costs related to the retail infrastructure.

Moreover, DraftKings might share the profits with its service partner. If DraftKings had chosen to enter the market alone, it would likely have faced similar entry costs, despite the possibility of these costs exceeding the $19 million alteration.

While DraftKings was waiting, other brands may have captured significant shares of the profitable Chicago market. Thanks to its strategy, DraftKings will be able to penetrate the Illinois market more swiftly and cost-effectively.