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

When Illinois passed its latest gambling expansion bill, it seemed like residents would have to wait years before being able to enjoy unrestricted online sports betting. However, a faster implementation may be possible thanks to a recent emergency law change by the Illinois Gaming Board.

The IGB introduced a new policy for online casino brands in the market, offering a possible innovative solution for virtual casinos.

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

On Thursday, the IGB unveiled a new rule allowing online sportsbooks to have co-branded partnerships, specifically focusing on the branding of these entities.

Major changes have been made to Section 1900.1260 of the Illinois disaster sports betting regulations.

A top sports betting distributor may submit an application under either Section 25.30 or 25-35 of the Act for betting on events using a mobile device or the internet. The parent company can also be featured, along with other brands. If multiple businesses are featured, including those not related to the parent company, they must be clearly displayed.

d) A master sports bookmaker participating in online sports betting in accordance with Sections 25 and 40 of the Act may have the opportunity to showcase a service company’s brand alongside other brands. Despite the presence of various businesses, including those not operating under a service model, the service model can still be prominently featured.

Basically, this rule mandates that online sportsbooks in Illinois must display the branding of the physical, master-license holders they are working with. For example, when BetRivers’ online sportsbook becomes available in Illinois, it must prominently feature the logo or name of its partner, Rivers Casino Des Plaines.

For those who are not well-informed, it might seem like just a surface change, but it could actually have important implications. It is essential to comprehend how the law is relevant in these circumstances.

How the situation is made more difficult by Illinois playing rules

Illinois sports betting regulations do permit the licensing of independent online sportsbooks, but the issuance of these licenses by the IGB is currently on hold and limited to a maximum of three.

According to the law, the IGB will need to wait 540 days after brick-and-mortar sportsbooks open before issuing licenses. Although the clock started on April 9, it will be delayed until 2021 before the board can issue licenses.

Following that, the waiting period will be prolonged as online casinos still need time to begin accepting bets post obtaining their license.

The government believed that online sportsbooks like DraftKings and FanDuel had the option to either team up with an Illinois license holder or wait 420 days to try to obtain one of the three standalone licenses.

This section of the law was created to give state-run casinos an edge and to praise companies like DraftKings and FanDuel for allowing paid entries in daily fantasy sports, even though the Illinois Attorney General believed it was illegal. Nevertheless, it appears that DraftKings and FanDuel may have found a way to circumvent any potential consequences.

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

DraftKings and FanDuel could greatly benefit from this co-branding idea by starting to accept electronic bets sooner. By securing a location that allows for financial gambling, obtaining an owner’s license, and promoting the location through their sports betting app, they could expedite the process.

Although this route may seem difficult, it has the potential to lower the price. Illinois estimates that a standalone website license will cost approximately $20 million.

The cost of a master’s degree is cut in half. Instead of waiting for a 540-fold delay, an online casino could invest an extra $10 million directly into a quick market-entry service.

It has been reported that FanDuel is potentially looking into acquiring the Fairmount Park Racetrack in Collinsville, Illinois, although these reports have not been confirmed. If FanDuel decides to move forward with the purchase, they would only need to obtain approval for the management services supplier license they have already requested in order to obtain a master license.

DraftKings has also asked for certification similar to FanDuel’s. This would allow both companies to supervise sports betting activities for expert license holders, who in this case would be themselves. While it may seem complex, this arrangement could be successful.

Getting a permit from a management service provider is priced at $1 million, making it much cheaper to hire a master license holder instead of purchasing a casino or racetrack. Additionally, owning a service would result in significant operational expenses.

As a result, some online sportsbooks choose to either be patient or engage in market entry negotiations. The decision ultimately hinges on the importance these businesses place on being pioneers in the market.