On Friday, Governor JB Pritzker of Illinois once again expanded the membership for mobile sports betting.
The executive order has been renewed until at least Feb. 6. The situation feels like déjà vu, and based on our observations, it appears unlikely that in-person registration will resume anytime soon.
Online registration has been introduced since August 2020 in response to the continuing COVID-19 pandemic.
In an effort to stop the virus from spreading, Pritzker closed all 10 casinos in Illinois in November. While there has been some improvement in the infection rates since then, the situation still presents challenges for Illinois residents.
In-person registration at Illinois casinos may resume once they reopen, but it will require a significant structural change before that can happen.
When did casinos in Illinois reopen?
Illinois is currently in Tier 3 of its Resurgence Mitigation Plan, and for casinos in the state to reopen, the state would need to move back to Tier 2.
Casinos in that area were permitted to operate at 25% capacity and were required to close by 11 p.m. at the latest.
To move back to Tier 2, areas must maintain a COVID-19 positivity rate below 8% for an extended period of time.
The positivity rate in Illinois is currently at 8.4%, showing a five-point improvement compared to November. Despite dropping to 6.8% on Dec. 27, the rate is slowly increasing once more.
Nevertheless, it is unlikely that in-person membership will resume when gambling reopens.
When online sign-ups were permitted by Pritzker in late August, the positivity rate was under 5%. Despite the possibility of reaching that point again, it is unclear if in-person registration will ever resume.
The 18-month membership, which grants access to the penalty box, is scheduled to end in fall 2021. Online registration for the renewal seems to be going smoothly.
The industry has clearly seen a positive impact, as shown by Illinois’ handle of $434.6 million in October, placing it fourth in the US. The revenue projections for November are expected to surpass $500 million, a feat that would not have been possible without the convenience of online registration.
Will Illinois receive a fresh Barstool?
There have been no new online sportsbooks in Illinois since William Hill launched in September 2020.
BetMGM, Unibet, and Barstool are planning to start operating in Illinois in 2021. As of now, BetMGM and Unibet are still awaiting approval for their applications.
Unibet is the most likely to launch first out of the three, as it only needs approval from the Illinois Gaming Board and has no administrative hurdles to clear.
In order for BetMGM Illinois sportsbook to finalize its partnership with Par-A-Dice Casino, the transfer of FanDuel’s license to its horse track is still necessary.
Operators should consider Illinois as a desirable business location, as online registration requirements will remain in effect for the foreseeable future.
Illinois sportsbooks raked in a profit of $42.2 million in October, with leading operators BetRivers, DraftKings, and FanDuel each earning tens of millions.
The sports gambling industry in Illinois has experienced growth as one of the few positive outcomes of COVID-19.
