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

Written By Derek Helling on May 29, 2020

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.

For the brand of online casinos in the position, the IGB implemented a new policy. That might present an innovative solution for virtual casinos.

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

On Thursday, the IGB posted a new regulation concerning the branding of online sportsbooks. Essentially, it allows online sportsbooks to co-brand themselves.

The following significant changes have been made to Section 1900.1260 of the Illinois disaster sports betting rules:

c ) When placing bets on activities using a mobile device or the Internet
A king sports betting distributor may apply in accordance with Section 25.
30 or 25 – 35 of the Act
1) A parent company may be displayed in addition to any other brand.
2) If a number of businesses are displayed, including those that aren’t
A family product needs to be prominently displayed.

d ) When a master sports bookmaker bets on sports online
Licensee who engages in gambling in accordance with Sections 25 and 40 of the Act:
1) A service company may be displayed in addition to any other brand.
2) If a number of businesses are displayed, including those that aren’t
A service model may be prominently displayed.

This rule essentially says that online sportsbooks that operate in IL in partnership with brick-and-mortar, master-license holders must display the branding for those master-license holders. For example, BetRivers’ online sportsbook needs to display the logo/name of Rivers Casino Des Plaines when it launches in IL.

To the untrained eye, that might just seem like a decorative change, but it could really have serious repercussions. It’s important to comprehend how condition law applies in these situations.

How the situation is made more difficult by Illinois playing rules

Sports betting regulation in Illinois does permit the licence of independent online sportsbooks. But, it delays the IGB’s issuance of those certificates and sets a three-person cap on them.

According to the law, it will be 540 days after brick-and-mortar sportsbooks open before the IGB can & rsquo issues those licenses. Even though that clock began to run on April 9, it will still be delayed 2021 before the table may also issue licenses.

There will be more waiting time after that. That & rsquo is due to the fact that it still takes some time for online casinos to begin accepting wagers after receiving licensure.

Therefore, online sportsbooks like DraftKings and FanDuel had to decide between partnering with an Illinois learn license holder and waiting 420 days in the hopes of obtaining one of the three solo licenses. The government believed this.

This section of the law was intended to give state-run casinos a head start and to applaud DraftKings, FanDuel, punish & rdquo, and others for accepting paid DFS entries despite the IL Attorney General’s stance that they were prohibited. But, it’s possible that DraftKings and FanDuel found a way out before the penalty box.

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

DraftKings and FanDuel could use this co-branding concept. Start placing bets electronically much sooner. All they would need to do is find a location in the position that is permitted for financial gambling, obtain an owner’s license, and then advertise that location on the sports gambling app.

That might seem like a difficult route, but it might actually mean that the price will go down. Illinois estimated the cost of a standalone website license to be$ 20 million.

A master’s degree is half the cost. Instead of having to wait 540 times, an online casino would have an additional$ 10 million to invest in a service that could enter the market right away.

FanDuel reportedly kicked the wheels on purchasing the Fairmount Park Racetrack in Collinsville, Illinois, according to unverified reports. FanDuel would only need to get approval for the management services supplier license it has already applied for if it were to buy the track and obtain a master license.

The same kind of certification has also been requested by DraftKings. With the help of those licenses, DraftKings and FanDuel would be able to manage the sports gambling operations for the expert license holders, who had in these fictitious circumstances be themselves. It & rsquo is a little challenging, but it would function.

A management service provider permit only costs$ 1 million, so purchasing a casino or racetrack would cost much more than hiring an existing master license holder. Owning a service would even come with significant operational expenses.

Some online sportsbooks does therefore wait it out or trade market entry deals. It simply depends on how much those businesses value being among the market’s early adopters.

Helling Derek Avatar
authored by

Helling Derek

Helling Derek is a lead writer for PlayUSA and the manager of BetHer. He is a 2013 graduate of the University of Iowa and covers the intersections of sports with business and the law.

View all posts by Helling Derek