Because of the reinstatement of the in-person registration mandate, one of the two sports betting applicants in Illinois is changing its launch strategy.
After submitting its application on November 16, 2020, Unibet was in the process of waiting for approval from the Illinois Gaming Board (IGB) in order to launch.
In a statement to Play Illinois, Manuel Stan, the Senior Vice President of Unibet US, stated:
This information is not useful for our clients in Illinois as it goes against our commitment to providing an optimal and smooth mobile experience. We will need to reassess our plans to launch in Illinois as a result.
Unibet has finalized a market access agreement with Argosy Casino Alton.
Alton, a small town in southwest Illinois, has a population of less than 30,000 and is located approximately 30 minutes from St. Louis. Despite its proximity, residents of Missouri are unable to download and use Unibet in Illinois and take it back to their home state because sports betting is illegal in Missouri.
While Unibet holds Argosy’s mobile license, Barstool is serving as the casino’s retail partner.
At first, convincing people to sign up in person can be difficult. However, it becomes even more daunting when trying to get them to download Unibet from a casino through Barstool Sportsbook.
Unibet recommends either waiting for new legislation or holding onto hope that someone will eventually pay $20 million for an online-only license.
This would enable remote registration for all individuals.
How does BetMGM fare in Illinois?
BetMGM is another applicant awaiting approval for sports betting in Illinois.
BetMGM declined to provide a comment when asked about the story. However, here is what we know about the situation.
BetMGM has the opportunity to gain market access through Par-A-Dice Casino in East Peoria, as FanDuel has transferred its mobile sports betting license to its racetrack, potentially opening up the Par-A-Dice license for BetMGM.
Boyd Gaming owns Par-A-Dice Casino and has a partnership with BetMGM.
The main problem is that East Peoria is almost a three-hour drive from the densely populated Chicago area. If BetMGM Sportsbook were to establish a presence in the Illinois market, this distance would put them at a major disadvantage. This is particularly significant given that other operators have had several months to register users online.
Another choice is to spend over $20 million on a license that is limited to mobile devices. BetMGM, among operators not currently located in Illinois, likely has one of the largest resource pools.
Ignoring the financial aspect, their main concern is that companies can easily register online once they obtain a mobile-only license.
Nevertheless, BetMGM may still view ‘& rsquo’ as their top choice in Illinois. Failure to commence construction in the state soon could be a sign of their final decision.
A passport that is issued only through online means is unlikely to become valid until the beginning of 2022.
Consider theScore Bet.
A few weeks ago, TheScore Bet successfully gained entry into the Illinois market through a partnership with Harrah’s Joliet Casino.
TheScore announced its plans to move to Illinois by the end of the year. A spokesperson for the company confirmed that this decision will not impact their expected timeline.
theScore Bet has not filed a formal passport application yet, unlike Unibet and BetMGM. Additionally, the approval process, as demonstrated by the first two, may be time-consuming.
The increase in sports betting activity in Illinois can be attributed to the entrance of additional sportsbooks into the market, as well as the continued availability of remote registration.
In-person registration presents a significant obstacle for current operators in attracting new clients and creates a challenging market environment for potential operators.
Illinois came close to hitting a monthly handle of $600 million in January, and is expected to exceed that amount with March Madness betting. However, the return of in-person registration may make March the peak month for the state for the foreseeable future.
