Few Winners, Many Losers Due To End Of Online Sports Betting Registration
Illinois Gov. JB Pritzker announced on April 2 that online sports betting registration would be discontinued, a move that is expected to have significant implications throughout the state.
The decision has a significant impact on the gambling consumer, with most IL sports betting operators affected, but not all.
Retail sportsbook operators near Chicago have a competitive advantage over their rivals due to the growing importance of Illinois in the sports betting industry.
From the operator’s perspective, these are the sportsbooks that came out on top and those that suffered losses due to Pritzker’s decision.
Victors: PointsBet and BetRivers
Despite the potential for stagnant growth in some sportsbooks, BetRivers and PointsBet’s ownership of wholesale casinos in the Chicagoland region positions them well to maintain a steady stream of customers.
Located in Des Plaines, Rivers Casino is approximately a 25-minute drive from Chicago, depending on where you are coming from.
This decision offers a mutually beneficial opportunity for Rivers. By entering the Illinois sports betting market through BetRivers Sportsbook, the casino has the potential to challenge the dominance of DraftKings and FanDuel while also attracting more visitors to the establishment.
PointsBet Sportsbook currently operates three retail locations in the Chicagoland area, located in Stickney, Prospect Heights, and Crestwood. The company is also considering opening a fourth location in Oakbrook in the near future.
PointsBet is currently the fourth highest-ranked sportsbook operator in Illinois in terms of monthly handle. While it may not surpass the market leaders anytime soon, it has the opportunity to grow its user base through in-person registration. In contrast, DraftKings and FanDuel may experience limited growth in the near future.
This brings us to our discussion about the “losers”. Warning: The losers far outnumber the finalists in this scenario.
Losers: Every another casino in Illinois that is currently operating
As previously stated, the move is likely to impede the business growth of DraftKings and FanDuel.
What’s the good news for the pair? Their business in Illinois is doing extremely well. Take a look at the profit distribution for January:
| Licensee | Web company | Handle in full | Control Internet | Shop Control | Full Income | Express Revenue | Local Income Taxes |
|---|---|---|---|---|---|---|---|
| King of the Casino | DraftKings | $244,196,209 | $243,538,843 | $657,366 | $16,423,303 | $2,334,761 | $154,716 |
| Par-A-Dice | FanDuel | $173,480,933 | $173,346,161 | $134,771 | $16,890,680 | $2,514,187 | $178,071 |
| Rivers | BetRivers | $112,737,857 | $108,990,832 | $3,747,025 | $10,807,475 | $1,615,643 | $135,856 |
| Competition Course at Hawthorne | PointsBet | $40,591,090 | $40,439,434 | $151,657 | $4,412,405 | $630,133 | $7,247 |
| Victoria the Great | Theodore Hill | $9,270,978 | $8,917,196 | $353,782 | $616,486 | $73,260 | $3,162 |
| Argosy | N/A | $707,080 | $0 | $707,080 | $103,761 | $11,744 | $0 |
| Joliet from Hollywood | N/A | $309,047 | $0 | $309,047 | $73,440 | $9,001 | $0 |
| Aurora Hollywood | N/A | $260,106 | $0 | $260,106 | $37,939 | $3,065 | $0 |
| Total | $581,553,300 | $575,232,466 | $6,320,834 | $49,365,489 | $7,191,795 | $479,052 |
DraftKings and FanDuel dominate the betting market for IL activities and are projected to maintain their stronghold in the industry.
Although BetRivers and PointsBet may have seen a decrease in their market share, it is important to consider the loyal customer base they have already built.
With DraftKings’ retail locations in West Illinois, FanDuel is at a disadvantage when it comes to in-person membership.
The only location where customers can sign up for FanDuel is at FanDuel Sportsbook & Horse Racing in Collinsville. Visitors from the St. Louis area may flock to the track, but they won’t be able to place bets on their phones once they return to Missouri, as sports betting is prohibited in the state.
This rule also extends to DraftKings Sportsbook, as customers can only sign up at DraftKings at Casino Queen in East St. Louis.
Nevertheless, this presents a significant challenge for established operators such as Barstool Sportsbook.
Barstool launched in the middle of March, following the lead of DraftKings and FanDuel. The operator had less than three months to attract online users in Illinois.
Barstool’s retail partner, Hollywood Casino Aurora, is situated in the bustling city of Aurora, Illinois, the state’s second-most populous city. While this location provides a competitive edge, the limited remote registration period compared to their rivals has presented challenges in fully capitalizing on this advantage.
The profit record for March will be released in mid-May, providing us with a clearer understanding of Barstool’s early success.
- The Illinois House Executive Committee discussed important gaming issues in Illinois, such as in-person registration, and examined the stance of both proponents and opponents of online registration in relation to major gaming proposals.
More morons: Every conceivable casino in Illinois
Operators considering opening a betting establishment in this Illinois-based environment may not find it appealing.
BetMGM and Unibet are both in the works to enter the market. Unibet is expected to partner with Argosy Casino Alton, while BetMGM is likely to team up with Par-A-Dice Casino.
Given the considerable advantage that other providers have gained, it is difficult to imagine rapid success with in-person membership for either, even if they are approved by the Illinois Gaming Board.
TheScore Bet has secured a deal that allows them to enter the market, but breaking into a market with established competitors can be challenging, especially without the need for in-person registration.
Non-residents can bid on one of Illinois’ 20 million mobile-only certificates, which are anticipated to be ready for purchase by the end of the year. Despite initially seeming unconventional, this opportunity is open to all interested parties.
The cost is significant, and if one of these licenses is approved, online registration will once again be open to everyone, giving a significant advantage to the mystery operator’s competitors.
Illinois is currently experiencing a period of prosperity and favorable conditions.
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