On Wednesday, Marcus Fruchter, administrator of the Illinois Gaming Board (IGB), revealed that three operators have submitted applications for an online sports betting license.
A third party made an attempt to apply, but they were 13 hours late. There are only three licenses available for mobile-only purchase.
Although these businesses are privately owned, the application process is crucial. Once the IGB grants an online-only license, the requirement for in-person membership under the Sports Wagering Act is eliminated.
If Governor JB Pritzker signs HB 3136, in-person registration for sports betting in Illinois will end on March 5, 2022. This means that online registration for sportsbooks could potentially be reinstated on or before that date, pending approval of a mobile-only license by the Illinois Gaming Board.
The announcement was made on the same day as the IGB reported a record-breaking month for sports betting. The Land of Lincoln saw $840.4 million in sports bets in October, surpassing the previous record by over $200 million. It is evident that reaching a $1 billion month is within reach.
The potential for success in the Illinois sports betting market is increasing with the recent news of online-only applications. Let’s take a fresh look at the situation and see what opportunities lie ahead.
Before March 5th, did IGB issue an online permit?
The Sports Wagering Act specifies the timeline for online-only licenses as follows:
The Board must accept applications for the initial competitive selection within 540 days of the first license being issued under this Act. The successful bidders for the first dynamic selection must be announced within 630 days of the first license being issued. The Board may extend this deadline if needed.
On December 3, when applications were expected, it was the 540th day. The 630th day on March 3 is very close to March 5, not by coincidence.
The law simply states that successful bidders must be announced, without specifying a deadline for the IGB to issue the license. Unless the IGB speeds up its processes from previous timelines, it is unlikely that an online-only license will be issued before March 5.
The price tag of$ 20 million was not too high for operators.
Previously, concerns arose that the $20 million cost of a mobile-only license could discourage operators. However, this fear did not materialize in the end.
In October, Illinois saw $800 million in wagers processed through only six online sportsbooks, a figure that falls below other comparable markets. It is likely that operators viewed the initial fee as a strategic investment for future gains.
By the end of 2022, Illinois may have ten or more casinos operating. The specific casinos that have applied for licenses are unknown, leaving the potential for numerous possibilities.
It is evident that companies like BetMGM, Bally Bet, Unibet, theScore Bets, Golden Nugget, and WynnBET are vying to enter the sports gambling market in Illinois, with access to land-based markets already established or soon to be secured.
The three candidates are eligible to remain on the listing, but there is a chance they may not, as market access is not required for the online-only license.
When the IGB reveals the candidates, it is probable that some well-known names will be listed.
For Illinois casinos, a$ 1 billion March is in the works.
Online registration for March Madness is expected to be available on time. Based on the impressive figures from October, it is possible that Illinois may surpass $1 billion in March handle.
Prior to March 2021, the Prairie State had a significant handle of $633.6 million, which nearly doubled from October 2020 to October 2021.
March is a month that is already well-known for betting, and Illinois has several factors that are contributing to its success in this area.
After in-person registration ends, it is expected that there will be a surge in online sportsbook registrations. Many individuals are likely to prefer registering online rather than visiting a physical sportsbook.
Additionally, with prompt action from the IGB, it is expected that several new and innovative sportsbooks will be introduced in March. This will result in a surge in demand for prizes and sign-up bonuses, a demand that can be easily met by juices.
Although there have been many obstacles along the way, the future of sports betting in Illinois looks very bright.
