The 2019 Sports Wagering Act legalized in-field casinos in Illinois, but Chicago has not yet opted to participate.
Neil Bluhm, co-founder of Rush Street Gaming, is also involved in the submission of two casino bids in Chicago. There are concerns about potential competition with Rush Street’s involvement in the bids.
During a joint meeting with the zoning and license committees, Bluhm argued that introducing stadium betting would result in a yearly $61 million reduction in Chicago casino revenue.
Bluhm is a notable figure within the Illinois entertainment community, and his viewpoint may hold significance.
Why Bluhm thinks that casinos do suffer from facility sportsbooks
Bluhm is not opposed to sportsbooks being permitted in the city; his main concern is with competition and generating revenue.
Rush Street is seeking bids for the Chicago game permit. Bluhm stated that wholesale sportsbook customers can be found in both casinos and stadiums.
Rivers Casino in Des Plaines, which is associated with BetRivers Sportsbook, has a minority ownership stake held by Rush Street.
Bluhm, who has a strong interest in the casino industry, favors the legalization of sports betting in Chicago. However, he is concerned that this could negatively impact the revenue generated by casinos. If Chicago were to pass the sportsbook stadium ordinance, it could lead to financial losses for Bluhm, who is a co-founder of Rush Street.
Bluhm was quoted by the Chicago Sun-Times during a joint meeting of the planning and permit commissions as saying:
Someone who gambles on tables and slot machines is typically also involved in sports betting. This segment makes up 20% of our business, but this is just a hypothetical discussion.
The dynamic nature of games is undeniable, but Bluhm is not keen on the idea of profits from his Chicago sportsbook and casino business being redirected to outdoor sportsbooks.
Bally’s and Hard Rock have both submitted bids for a casino in Chicago. We are eagerly anticipating both sides’ arguments in support of gambling on indoor activities.
The ripple effect of promotion
Illinois currently has six online sportsbooks vying for the attention of bettors, leading to fierce competition. Sportsbooks are investing millions in advertising and promotions to attract customers.
The capacity of sports stadiums like Wrigley Field, Guaranteed Rate Field, Soldier Field, and the United Center allows for tens of thousands of spectators to attend events. With many of these spectators focused on the game they are watching, the presence of such a large audience at a single event could potentially lead gamblers to shift their focus and money away from casino games.
As the industry expands, in-house sportsbooks may be seen as a viable option for the circumstance. If the law is passed, Rush Street and Bluhm’s team will need to focus on advertising and offering blackjack promotions to attract customers to their casinos and sportsbooks.
Of course, this could result in extra costs. Although Bluhm’s claim may be debatable, his logic is evident.
Are there physical sportsbooks in operation? Yes, they are permitted in Illinois.
Nevertheless, money will play a crucial role in this business, as with anything else.
