Handicapping Which Sportsbooks Will Come Next To Illinois

Anticipating the arrival of future sportsbooks in Illinois can prove to be a difficult undertaking.

In the end, there are strong reasons why Illinois has only seven sportsbook operators, while other areas provide a much greater variety of choices.

However, Illinois offers substantial opportunities for potential operators. With a population of around 12.5 million sports enthusiasts, the Prairie State is the second largest market in the US for sportsbook revenue and the third largest in terms of handle.

There are a minimum of 14 open positions for new IL sportsbooks, with several being affiliated with brick-and-mortar Illinois casinos. This means there are ample opportunities to join the market.

Our odds for which Illinois sportsbook operators are coming next

According to Play Illinois, which sportsbooks are most likely to launch in Illinois based on current odds?

1. The Nevada brand has already finalized a deal with Full House’s American Place Casino in Waukegan, securing a temporary casino opening in December. Circa is expected to become the eighth live sportsbook operator in Illinois around this time, pending approval from the Illinois Gaming Board.
2. Bally Bet has odds of 3-1. Bally’s is considering linking its online sportsbook to either the Bally’s Quad City Casino and Hotel in Rock Island or the Bally’s Chicago mega-casino. In September, Bally’s applied for a sportsbook license from the IGB, showing strong interest and intent.
3. Bet365, a major player in the European gaming industry, has odds of 5-1. With its significant size, the company has a good chance of gaining enough market share in Illinois to make up for the initial costs. Bet365 is already successful in Ontario, where it is one of the top operators among 39 competitors. The company also has operations in New York, New Jersey, and Colorado, further solidifying its presence in the market.
4. In November 2021, WynnBet, which is currently active in nine US states, applied for a Management Services Provider license from the IGB to enable mobile wagering in Illinois. However, there has been little recent information about WynnBet’s growth strategy in the state.
5. While initially rumored to be partnering with Argosy Casino in Alton, there has been limited recent news regarding Unibet’s expansion into Illinois. Nevertheless, the European powerhouse has demonstrated its commitment by submitting a license application to the IGB. Unibet currently operates in Ontario, New Jersey, Pennsylvania, Virginia, Iowa, and Indiana.

Other sportsbooks possibly eying Illinois

There is a possibility for new operators to enter Illinois, such as:

• Hard Rock, currently at odds of 8-1, has yet to make a major announcement regarding the launch of its own online sportsbook in Illinois. However, the company has applied to the IGB for approval to operate one. With a temporary retail casino in Rockford lacking a sportsbook partner, the introduction of an online sportsbook appears to be a natural progression. Hard Rock already operates online sportsbooks in six other states.
• During the CAA World Congress of Sports in New York, Fanatics CEO Michael Rubin announced the company’s intention to introduce sports betting in all major US states by January 2025, excluding New York. This suggests that Illinois will likely be part of their expansion efforts. However, there has been no confirmation from Fanatics about entering the Prairie State.
• Golden Nugget currently has odds of 10-1. While it is uncertain if Golden Nugget intends to launch an online sportsbook in Illinois, they do have plans to open a retail casino in Danville. Therefore, it would make sense for them to enter the market through this avenue. Golden Nugget currently operates an online sportsbook in New Jersey, Michigan, Virginia, and West Virginia.
• Pinnacle, with a current standing of 12-1, has transitioned from its black-market roots to become legitimate in Ontario. However, this legitimacy has not been extended to other parts of North America. It remains unclear if the operator’s move into Ontario could signal a potential expansion into Illinois. Despite this uncertainty, Pinnacle’s popularity among certain betting enthusiasts could give them a strong foothold in the Illinois market if they decide to expand. Unlike other platforms, Pinnacle is favored by many bettors for its focus on providing better odds rather than bonuses and incentives. Additionally, Pinnacle prides itself on being a platform that supports winners and does not penalize users who cash out frequently.

Longshots to come to the Prairie State

Illinois is unlikely to attract these operators.

• Betr, the world’s first micro-betting sportsbook with odds of 15-1, may be eyeing entry into the Illinois market. Unlike traditional betting, Betr allows bets on individual moments in a game, such as balls and strikes in baseball. While there is no confirmation of their interest in Illinois, Betr recently entered the Indiana market and has plans to launch in Ohio in 2025. This suggests that Illinois could potentially be a future market for Betr, which is backed by Joey Levy and Jake Paul.
• Prophet Exchange, a betting exchange based in New Jersey, offers a unique selling point similar to Betr. Unlike traditional betting systems, a betting exchange allows bettors to place wagers against one another, usually at lower fees. While Prophet Exchange has not shown interest in expanding to Illinois, overlooking the opportunity in the Prairie State would be a mistake, much like their 25-1 offering.
• Fox Bet, despite having odds of 25-1, has not shown any significant signs of interest in Illinois. However, given its presence in Colorado, Michigan, New Jersey, and Pennsylvania, it is not out of the realm of possibility that Illinois could be a future market for the company.
• Penn National owns theScore Bet and operates retail casinos in Joliet and Aurora. While theScore Bet was initially linked to the Joliet location, Penn has chosen to focus on Barstool Sports as its sportsbook brand in the US. However, theScore Bet will still operate in Canada and will provide Barstool with trading technology in 2025. It is unlikely that theScore Bet will become a prominent brand in Illinois, but anything is possible in the future.

There are still many ways for the Illinois sports betting market to enter.

Seven existing Illinois sportsbooks and how they got there

Less than half of Illinois’ 11 operating retail casinos have licensed online sportsbook partners.

• BetRivers has formed a partnership with the Rivers Casino located in Des Plaines.
• DraftKings is at the Casino Queen in East St. Louis.
• Caesars at the Grand Victoria Casino in Elgin
• Hollywood Casino Aurora has a barstool available for patrons.
• BetMGM operates online while FanDuel has a brick-and-mortar presence at the Par-a-Dice Hotel Casino in East Peoria.

Moreover, the only two operational horse racetracks in the state, Hawthorne and the former Fairmount Park, have been granted permission to form online sportsbook alliances, a privilege not extended to licensed OSBs. Fairmount Park has joined forces with FanDuel, resulting in the track being rebranded as FanDuel Sportsbook and Horse Racing. Meanwhile, Hawthorne has partnered with PointsBet.

This is how Illinois came to have seven sports betting operators.

At least 14 Illinois sportsbook slots remain open

This indicates that there are a minimum of 14 available openings for an Illinois online sportsbook to join the market, with the possibility of additional opportunities.

• Six is connected to an already licensed retail casino via a tether.
• Five new casino applicants were connected.
• Three sportsbook licenses are available exclusively online.
• There are four potential locations connected to professional sports facilities where betting may occur. The Fanduel Sports Lounge at the United Center is currently in operation but is awaiting approval to accept bets. Additionally, a DraftKings Sportsbook is under construction at Wrigley Field and is expected to open in 2025.

There are six open slots for an Illinois online sportsbook to enter the market by partnering with licensed retail casinos.

• Harrah’s Casino Joliet
• Originally, there were reports that Hollywood Casino Joliet was teaming up with theScore Bet, but theScore Bet has since pulled out of the US market.
• Initially, there was a belief that Argosy Casino Alton had a connection to Unibet.
• Harrah’s Metropolis Casino
• The Hard Rock Rockford Casino is currently housed in a temporary location as construction on a permanent site is underway.
• Bally’s Quad City Casino and Hotel in Rock Island

Five additional open slots are available for a sportsbook operator to form partnerships with new applicants for a casino in Illinois.

• Circa has already secured a partnership with American Place Casino in Waukegan.
• Bally’s Chicago is expected to become the centerpiece of a new casino development at the former Chicago Tribune printing plant. The establishment will likely include a Bally’s sportsbook, which could potentially be tied to the company’s online sports betting platform and its Rock Island casino.
• Golden Nugget Danville
• The casino located at Walker’s Bluff in Williamson County.
• Homewood’s Wind Creek Chicago Southland is a premier destination for entertainment and gaming.

Online-only license slots re-opened

There are three online-only sportsbook licenses available that are not associated with a retail casino. However, each of these licenses comes with a $20 million price tag.

The high cost has been a significant obstacle to obtaining an online-only license, leading to a lack of applicants. The Illinois Gaming Board has reopened slots for bidding starting November 1, with a deadline for bid submissions set for March 1, 2025.

When online-only licenses were first introduced by the IGB in August 2021, only four operators, who were considered relatively weak, applied.

Tipico, a sportsbook operator based in Malta, was denied approval by the IGB for failing to meet the December 2021 deadline.

After filing, Digital Gaming, a Florida-based company, decided to withdraw its application.

Fubo Gaming tried to meet the minimum requirements set by the IGB, but unfortunately, they were informed that they did not meet the criteria and were disqualified. This decision was probably for the best, as Fubo Gaming announced on October 17 that they were ceasing their operations.

Tekkorp, an investment group associated with Caliente, a leading gaming company in Mexico, was the sole applicant that came close to obtaining a sportsbook license in Illinois. Despite their initial progress, Tekkorp announced in October that they had decided to withdraw their application for the license.

Why operators are reluctant to enter Illinois

While Illinois provides many potential avenues for sportsbooks to enter the market, there are also several notable obstacles that may hinder their success.

The cost of the license is one of the highest priorities.

The initial retail casino license holders were required to pay 5% of their adjusted gross receipts in order to offer a sportsbook. The two horse racing tracks, on the other hand, had to pay a percentage of their handle. The cost for obtaining a license varied between approximately $2.3 million and $10 million.

No matter if it is a new casino or track, the base fee is a percentage, with a minimum charge of $5 million.

Running a sportsbook at a professional sports venue necessitates a $10 million license. Nevertheless, the ability to operate an online sportsbook is confined to the nearby areas of the facility, thus mainly enhancing marketing visibility.

As mentioned before, the cost of a license for an online-only sportsbook is $20 million.

Given the fierce competition in the market and the limited profit margins in sports betting, requesting a minimum entry fee of $5 million is quite high. It would be difficult for a new operator in Illinois to establish a significant market presence, especially when up against well-established competitors such as FanDuel, DraftKings, BetMGM, PointsBet, BetRivers, Caesars, and Barstool.

Moreover, existing market players are resistant to more competition and likely funding lobbying campaigns to keep the number of sportsbook operators in Illinois stable or near its current level.

No online casinos a further disincentive

Furthermore, there is a significant issue in Illinois as it currently prohibits online casinos, which are the main revenue generators.

This explains why regions such as New Jersey, Pennsylvania, Michigan, and Ontario have more online casino operators compared to Illinois. Ontario has the highest number of operators at 39, followed by New Jersey with 33, Michigan with 15, and Pennsylvania with 14.

The 2021 update from The Illinois Commission on Government Forecasting and Accountability suggests that online casinos could have been advantageous during the COVID-19 pandemic, especially when retail casinos were not operational.

The adjusted gross revenue (taxable base) totals from states with online casinos could potentially range from $622 million to $1.249 billion, based on revenue results.

During this specific pandemic period, tax revenues could have varied between $75 million and $200 million, based on directed rates ranging from 12% to 16%. It is worth mentioning that revenues generated during a pandemic are usually higher, as additional gaming and spending options are likely to emerge once fears about the virus decrease.

Therefore, it is clear that Illinois views online casinos as a major revenue generator.

In Illinois, video gaming terminals are king

Illinois is home to the most lucrative video gaming terminal market in the nation, and potentially even the world. With around 8,200 locations hosting approximately 44,000 VGT units, the revenue generated from these machines far exceeds that of Illinois’ casinos.

Steve Brubaker, a lobbyist from Illinois, stated in an interview with Play Illinois:

The VGT companies are the main revenue drivers in Illinois, generating almost twice as much income as any other source. Introducing an online casino product would directly compete with local bars and restaurants, leading to pushback from both the VGT companies and the establishments and mayors that lawmakers depend on for support during re-election.

We need to address the current issue at hand. What can we offer Video Gaming Terminal (VGT) operators to encourage them to support online casinos? Additionally, how can we incentivize mayors, bar owners, and restaurant owners in those legislative districts to gain their support?

This suggests that the chances of online casinos being established in Illinois in the near future are unlikely, decreasing the probability of additional online operators focusing solely on sportsbooks.

If the regulations stay unchanged, only a company with substantial resources and financial backing would be interested in operating in Illinois.