No Penalty On The Play: DraftKings, FanDuel Avoid Wait For Illinois Licensure

Written By Derek Helling on July 20, 2020

The IllinoisLegislature made a decision to punish businesses like DraftKings and FanDuel when it drafted its most recent gambling expansion law. But, the attempt to restrict online sports betting users has failed to achieve that goal.

In the Prairie State, DraftKings and FanDuel both have licenses to take betting online. You start to wonder why there was a delay in online-only licenses now that two more regional players are entering Illinois.

FanDuel and DraftKings are authorized for online sports betting in Illinois.

On Friday, the Illinois Gaming Board (IGB) issued management services provider permits to both companies. Basically, it means both companies are good to operate sportsbooks on behalf of Illinois master license holders.

It & rsquo is unsure of when the two will start doing so, either online or in person. However, it might be crucial for both users to find online at the same time.

Currently, Gov. JB Pritzker‘s suspension of the in-person registration requirement for online wagering is still in effect. That means the sooner the sportsbooks can launch in the Land of Lincoln, the more time they have to accrue account registrations online.

While Illinoisans may be able to quickly update desktop and mobile websites, the method for Android and Apple programs might be more difficult. State requirements for these apps can change, necessitating the development of apps tailored to each business.

The growing competition puts additional strain on DraftKings and FanDuel on the market. PointsBet received a permit from the IGB last Tuesday, and the business intends to move into IL & ldquo very soon. & rdquo,

The avoidance of the & ldquo, penalty box, is, however, the story’s most intriguing feature. & rdquo, Recognizing that circumstance calls for a brief history lesson.

Why did the Illinois Legislature support DraftKings and FanDuel?

In 2015, then-IL Attorney General LisaMadigan issued an opinion that daily fantasy sports contests were illegal gambling. DraftKings and FanDuel didn’t blink, however.

Instead, they referred to Madigan & rsquo as a bluff. They kept taking paid comments into IL, essentially betting that Madigan wouldn’t file any charges.

DraftKings and FanDuel’s activities weren’t without repercussions, despite the fact that they were correct. That had a significant impact on the betting development law in 2019.

In essence, politicians wanted online casinos to wait for the better part of two years before operating independently in Illinois. They did it in an original approach.

Three separate, online-only sports gambling certificates are permitted by law. Those licensees are not required to conduct business under the supervision of an IL expert license holder. In Illinois, those are gambling, off-track bookmakers, racing, and sports venues.

The IGB can’t issue any of those licenses until 540 days after the first retail sportsbooks started taking bets in IL, however. The clock began ticking on that time period on March 9, when Rivers Casino took the first legal wager in IL history.

For DraftKings and FanDuel, that was the intended & ldquo, penalty box, and / – period. However, by obtaining permission to handle sports betting for a master permit holder, both businesses may now be able to get around that.

Now secured by DraftKings market access by negotiating a deal with the Casino Queen in East St. Louis. As of right now, FanDuel remains a free agent.

Bettors in Illinois may soon have a variety of choices for online betting. All of the major online sports betting companies will already be in the position before those three online-only licenses become available if the current trend continues.

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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.

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