Opinion: In-Person Registration At DraftKings Reveals Mandate Was More About Punishment, Not Security

Written By Derek Helling on August 12, 2020Last Updated on August 16, 2020

Editor’s Note: The following article reflects the author’s personal opinions.

When is in-person registration not necessary for online betting on website activities? Look to DraftKings’ registration model in Illinois for the answer to this question.

The necessity primarily pertains to the location rather than in-person interactions. While this may not be inherently problematic, it highlights that the provision in Illinois law was specifically created to target online daily fantasy sports operators.

Special features of DraftKings in-person registration in Illinois

In Illinois, unlike Iowa and Nevada, bettors do not need to visit the physical gambling window at DraftKings at Casino Queen in East St. Louis to place their bets. The requirement for in-person registration in Iowa will expire on New Year’s Day.

In Nevada and Iowa, those looking to place electronic bets must first go to a physical sportsbook. For instance, to bet on PointsBet online sportsbooks in Iowa, you must first visit the Catfish Bend Casino sportsbook in Burlington.

A portion of the casino employees will examine your state ID for two purposes.

Firstly, it helps the sportsbook confirm that you are not on the self-exclusion list in your state.

Secondly, it confirms that you are of legal gambling age and a minimum of 21 years old.

Nevertheless, there is no legitimate justification for requiring that procedure to take place in person. Online sportsbooks are able to effectively verify compliance with all regulations regarding eligibility of bettors on the internet. States like Pennsylvania and New Jersey, where sports betting is permitted, demonstrate that the process is simple and streamlined.

DraftKings in East St. Louis, Illinois is meeting the state’s requirement by only needing patrons to be on the property to participate.

When you arrive at the parking lot, you have the option to create an account through the DraftKings handset app or website. Registering inside the retail book’s window is also available but not mandatory.

DraftKings utilizes a geolocation technology called “PinPoint,” created by GeoComply, which uses your mobile device’s location services and Bluetooth beacons to create a virtual boundary around the casino.

While this betting system offers advantages for bettors, it also serves to benefit the state government. It is evident that the in-person requirement was implemented as a form of retribution.

True justification for DraftKings’ in-person registration requirement

This is improving a less than ideal situation for potential DraftKings users in Illinois.

Some Illinois residents find it inconvenient to travel to East St. Louis just to tap their phone screens a few times, but it is a slightly less inconvenient method.

Moreover, allowing registrants to stay in their vehicles helps in curbing the transmission of COVID-19. This measure safeguards both the bettors and the staff members of Casino Queen.

Residents of Illinois should carefully examine a specific story due to the recent incident that took place.

In 2015, Lisa Madigan, the Attorney General of Illinois at the time, stated that the daily fantasy contests for cash prizes offered online by DraftKings and FanDuel, which involve paid entries, are considered illegal gambling in her opinion.

Despite being told not to, DraftKings and FanDuel continued to accept entries and give out prizes in Illinois. Attorney General Madigan repeatedly brought up the issue. It is unclear if charges would have led to a guilty verdict, given the significant resources required for such a legal battle.

However, DraftKings was not completely unaffected by penalties. The Illinois Legislature, led by Madigan, the father of the Speaker of the Illinois House, imposed retaliatory actions against the company last year.

Illinois law established a form of punishment for DraftKings akin to a “penalty box.”

Bettor registration is mandatory until the Illinois Gaming Board grants the first of three licenses for online-only casino operators in accordance with the law.

The IGB is prohibited from issuing any licenses until 540 days have passed since the state’s primary financial sportsbook accepted its first wager. Since RiversCasino was the first to accept bets on March 9, the countdown has already started.

What does this mean for DraftKings, Illinois activities punters?

DraftKings has launched after the 540-day “penalty box” period, but not without consequences. The site’s growth opportunities are restricted by certain stipulations, and it must also share its revenue with its facility partner.

Although the St. Louis metro area is a major population center in Illinois, it may not be the most powerful market region. DraftKings IL Sportsbook is trying to persuade Chicago residents that it is worth making an eight-hour round trip to place bets.

The BetRivers online casino offers a legal gambling option closer to Chicago. In the near future, PointsBet and William Hill will also be available online for those in the greater Chicago area.

The blackjack greatly benefits from this subscription model.

The casino will not see customers depositing money or participating in activities on-site, as registrants can complete the process without physically entering the building.

If bettors were required to adhere to the state’s self-exclusion program or meet minimum age requirements, the IL would not allow them to sign up through their devices in the DraftKings at the Casino Queen parking lot. In that scenario, bettors may need to present themselves in person.

The idiots in this scenario are the punters in El.

The main emphasis of this portion of Illinois laws was not on these unrelated matters. Rather, it was solely aimed at penalizing DraftKings for more than four years of failure to comply with the state’s attorney general.

There is no need to hold a grudge against DraftKings for their decision. They have made their choice and now must deal with the consequences. Unfortunately, it is the new sports bettors in Illinois who are the ones suffering in this situation.

They have to travel long distances, possibly for hours, to reach an East St. Louis parking lot just to spend a brief period of time at the site. While there, they complete a series of tasks that could be done elsewhere as long as the same level of security and compliance is upheld.

The current in-person registration requirement at DraftKings in Illinois will gradually be eliminated over the next two years, posing a significant disadvantage for legal online sportsbooks in the state. Additionally, this requirement does not enhance the overall customer experience.