New Gaming Rule Could Be A Shortcut For FanDuel And DraftKings Getting In IL

It appeared that Illinoisans would have to wait years to appreciate unrestricted online sports betting when the state passed its most recent playing growth bill. However, a shorter delay for that may result from the Illinois Gaming Board’s new emergency law change.

The IGB implemented a new policy for the brand of online casinos in the position, which could potentially provide an innovative solution for virtual casinos.

What’s up with the emergency rule change, What & rsquo?

The IGB announced a new regulation on Thursday that essentially permits online sportsbooks to co-brand themselves. This regulation pertains to the branding of these entities.

Significant amendments have been implemented in Section 1900.1260 of the Illinois disaster sports betting rules.

c) A leading sports betting distributor can apply as per Section 25.30 or 25-35 of the Act when betting on activities through a mobile device or online. Alongside other brands, the parent company can also be displayed. If multiple businesses are showcased, including those that are not part of the family product, it must be prominently displayed.

d) In the case of a master sports bookmaker who engages in online sports betting as per Sections 25 and 40 of the Act: <br><br>1) There is a possibility for a service company’s brand to be displayed alongside other brands. <br><br>2) Even if several businesses are showcased, including those not following a service model, the service model can still be prominently displayed.

In essence, this regulation requires online sportsbooks operating in Illinois in collaboration with physical, master-license holders to show the branding of these master-license holders. As an illustration, when BetRivers’ online sportsbook launches in Illinois, it must show the logo or name of its partner, Rivers Casino Des Plaines.

To those not knowledgeable, it may appear as merely an aesthetic alteration, but it could potentially have significant consequences. Understanding how the law applies in such situations is crucial.

How the situation is made more difficult by Illinois playing rules

Illinois sports betting regulation does allow the licensing of independent online sportsbooks. However, it postpones the issuance of these certificates by the IGB and limits them to a maximum of three.

As per the law, it will be 540 days after the opening of brick-and-mortar sportsbooks before the IGB can issue those licenses. Despite the clock starting on April 9, it will still be delayed until 2021 before the board may also issue licenses.

After that, the waiting time will be extended. This is because online casinos still require some time to start accepting bets even after they have obtained their license.

The government held the belief that online sportsbooks such as DraftKings and FanDuel were faced with the decision to either partner with a license holder from Illinois or wait 420 days in an attempt to secure one of the three independent licenses.

This part of the legislation was designed to provide an advantage to state-run casinos and commend DraftKings, FanDuel, and others for accepting paid DFS entries, despite the Illinois Attorney General’s view that these were prohibited. However, it seems that DraftKings and FanDuel may have discovered a loophole to avoid penalties.

Get out of jail free andrdquo, card, DraftKings & rsquo and FanDuel & lrquo

This co-branding idea could benefit DraftKings and FanDuel. They could start accepting electronic bets much earlier if they simply secure a location that permits financial gambling, acquire an owner’s license, and then promote that location through their sports betting app.

While this route may appear challenging, it could potentially result in a decrease in the price. Illinois has projected the cost of a standalone website license to be around $20 million.

The cost of a master’s degree is halved. Rather than enduring a 540-time delay, an online casino could directly invest an additional $10 million into an immediate market-entry service.

Reports suggest that FanDuel is considering the purchase of the Fairmount Park Racetrack in Collinsville, Illinois, although these reports are unverified. If FanDuel were to proceed with this purchase, they would only need to secure approval for the management services supplier license they have already applied for, in order to acquire a master license.

DraftKings has also requested similar certification. This would enable both DraftKings and FanDuel, with the assistance of these licenses, to oversee the sports gambling operations of expert license holders, who, under these hypothetical scenarios, would be themselves. Although it’s slightly complicated, it could work.

Acquiring a permit from a management service provider would only cost $1 million, hence hiring an existing master license holder would be far less expensive than buying a casino or racetrack. Moreover, owning a service would also incur substantial operational costs.

Therefore, some online sportsbooks either wait it out or negotiate market entry deals. It all depends on how much those businesses value being early adopters in the market.