Chicago Teams Threaten To Take Their Ball And Go Home Regarding Sportsbooks

Bookmakers at locations like Wrigley Field and the United Center might one day become a reality. If Chicago sports teams approve of the terms, however, that & rsquo.

The five Chicago-based teams in the four major North American professional sports leagues – the Bears, Blackhawks, Bulls, Cubs, and White Sox – have clearly stated their terms to the Illinois Gaming Board in a joint letter.

What the sports teams in Chicago requested in the text

The letter indicated that the five teams were interested in running sportsbooks at Guaranteed Rate Field (White Sox), Soldier Field, United Center (Blackhawks and Bulls), and Wrigley Field (Cubs). However, they stated that this interest is contingent upon the price being reasonable.

The IGB’s requests include protections for teams, sportsbooks, and potentially a changed price. However, the text emphasized more on the former than the latter.

The second line of defense for the teams is a rigid compliance with a section of the new law that permits sports betting. The law states that the clubs have the exclusive authority to operate a casino or negotiate a deal with another party to do so within a five-block radius of their venues.

The email suggests that this should be applicable to mobile betting as well as financial sportsbooks. If this were so, fans within a five-block radius of such venues would only be permitted to use the betting game associated with the preferred team’s license.

However, that’s not the only request. Before investing in a casino operation, the groups seek further guarantees.

Registration fees for sportsbooks playing a role

The main reason why the teams are adamant that the IGB upholds their exclusivity zones is the cost of a casino license. They indeed have a vested interest.

Obtaining a passport costs $10 million. While not as high, the registration fees also represent a significant initial expense.

A proficient sportsbook’s license in Washington, D.C. is just 5% more expensive. Although having casinos in stadiums would indeed attract a dedicated and focused audience, it still imposes a high cost.

The teams, in their letter, also ask the IGB to prevent competitors and rsquo from placing ads within a five-block radius. The email also reveals concerns about bets placed with the Illinois Lottery in the same vicinity.

The letter, supporting the teams’ arguments, cites a recent study. This study concluded that high tax rates would render a Chicago casino financially unviable.

The team argues that if the IGB does not meet their requirements, the license fee will have the same effect. Furthermore, the team does possess some influence in this situation.

Why the condition might require the teams more than the other way around

The main reason Illinois legalized sports betting was to increase revenue from game taxes. However, if these Chicago groups choose not to establish the bookmaking operations allowed by law, the potential profit increase won’t be fully realized.

Should the team stand firm in refusing to place bets on sportsbooks until their demands are met, it could potentially force the state to compromise on the registration price. It would also be imperative to rigorously enforce the five-block spoke.

The implementation of constitutional sports betting in Illinois is still weeks away. Resolving this issue is crucial for it to take place.