When Could Online Sports Betting Registration Return To Illinois?

Editor’s Note: From Saturday, March 5, 2022, visiting a retail sportsbook in Illinois to register for a legal online sportsbook is no longer necessary. You can now conveniently sign up for an Illinois sports betting account using your phone or computer.

On Friday, Illinois Gov. JB Pritzker unexpectedly ended mobile registration for the IL sports betting market, despite an increase in COVID-19 cases.

Users are now required to visit an affiliated Illinois casino, racetrack, or off-track betting (OTB) site to open an online sportsbook account.

For now, this will remain the situation for Illinois sports bettors, unless there is new legislation or an executive order.

Here’s the information we have about the potential return of mobile registration and how it might happen.

• The Illinois House Executive Committee deliberated on several significant gaming matters in the state, including in-person registration. Find out the proponents and opponents of online registration in the discussion about major gaming proposals.

Illinois may require an approved virtual license only.

We can revert to remote registration after a mobile-only operator is licensed. However, the issue is that this won’t happen until at least December.

Currently, all licensed sports betting operators are somehow linked to a land-based entity. Nonetheless, the law also permits three licenses exclusively for mobile use.

As previously stated, the issue is that the licenses for wireless sports gambling won’t be available for 18 months after the initial registration is issued. Furthermore, each license has a price tag of $20 million.

In contrast, master licenses cost $5 million.

The first portable license was issued on June 11, 2020. In 18 weeks, it will be December 2021.

Though that’s the earliest conceivable date, it’s improbable that a license would be issued that swiftly. Take into account this excerpt from the Sports Wagering Act:

“The Board is required to receive applications for the initial competitive selection occurring post the Act’s effective date, within 540 days from the issuance of the first license as per the Act, to qualify. The successful bidders for the first dynamic selection must be announced by the Board within 630 days of the first license issuance under this Act. The Board holds the right to extend this deadline if necessary.”

Even a dialect exists that allows the process to extend beyond March 2022, which is the endpoint set by the 630 days.

While that’s one piece of the puzzle, we can’t overlook another significant factor.

Did anyone else try to buy a license that is exclusively available online?

Illinois just has licenses, which is a concern.

Clearly, the Illinois sports betting market has not unfolded as planned.

By forming partnerships with casinos and racetracks, DraftKings and FanDuel discovered ways to sidestep the 18-month “penalty box”. Consequently, during the nine-month period of Pritzker’s executive order, they emerged as the state’s two biggest operators.

Now that DraftKings and FanDuel are no longer contenders for the online-only licenses, which operator will be willing to pay $20 million to enter this market?

Even if another operator does pay, it allows those who did not have to pay the $20 million to register online.

Therefore, a new technician would need to shell out four times the amount for a license compared to what the recent operators in Illinois did. In the process, they would be giving their competitors a significant advantage.

Maybe there’s an operator who’s interested, but at first glance, it doesn’t appear to be a very enticing offer.

Which providers of sportsbooks may step in to save the day?

Currently, BetMGM and Unibet are awaiting approval as sports betting applicants.

Unibet is expected to gain access to the business via Argosy Casino Alton, as presented by BetMGM Sportsbook Illinois. Similarly, Par-A-Dice Casino is likely to grant access.

TheScore Bet has not yet officially applied, but it recently inked a market access agreement with Harrah’s Joliet.

It’s hard to identify any outsider willing to pay $20 million for the mobile-only license, considering that all major US players are based in Illinois.

Bet365 seems to be an opportunity. However, once again, it would require a substantial investment and support for both existing and new competitors.

We will also monitor potential actions by Illinois lawmakers in the coming weeks. Our focus will be on the laws regulating online casinos and we will continually update on this matter.