During the Illinois veto session starting next week, there may be discussions about removing the need for in-person registration when signing up for online sports betting accounts.
Tom Swoik, the executive director of the Illinois Casino Gaming Association (ICGA), told Play Illinois that some of his members are pushing for a legislative solution.
“I believe there has been some discussion among certain businesses and politicians regarding this matter. To me, it appears that it should be relatively straightforward to resolve.”
The Illinois Legislature will reconvene on October 19 for a six-day session, concluding on October 28. The main agenda will be to review and decide on the governor’s vetoes of bills passed during the regular session.
Nevertheless, legislators can take advantage of this opportunity to tackle any remaining issues from the previous session, such as SB521. This bill, which was approved by the House in June, contains provisions to allow in-state college betting in Illinois, but only at physical sportsbooks.
Almost all casinos in Illinois support in-person reform.
Swoik stated that eight out of the nine ICGA members support removing the in-person requirement.
The only opponent of the condition, initially advocated for by Rivers Casino, is the casino itself.
Swoik also expressed a desire to remove the in-person requirement, as reported by a lobbyist representing Par-A-Dice Casino, which has a partnership with FanDuel.
This means that nine out of the 10 casinos in Illinois are in favor of a legislative solution.
History on the requirement for in-person betting registration
The in-person registration requirement was introduced during the last round of sports betting negotiations in June 2019 as a means to penalize DraftKings and FanDuel.
Rivers advocated for a three-year delay before DraftKings and FanDuel could enter the market, citing their past operation of daily fantasy sports in the state during a period of legal uncertainty.
In order to bring Illinois casinos on board with sports gambling, legislators agreed to grant them an 18-month exclusivity period before three mobile-only licenses would be made available. Additionally, legislators included a requirement for in-person registration until the first of these wireless licenses is issued, specifically to accommodate Rivers casino.
The in-person registration condition is no longer necessary.
After the pandemic began, Governor JB Pritzker issued multiple executive orders eliminating the need for in-person registration.
During this period, the number of registrations for sports gambling accounts surged.
According to a survey conducted by Swoik of the association’s casino members, over 92% of registered Illinois residents for sports betting accounts did so online while the in-person requirement was waived by the governor.
It is undeniable that Illinois would not have reached the status of the third-largest sports betting market in the country if the in-person requirement had not been temporarily removed. However, the mandate has now been reinstated just in time for the NFL season.
Congressional action is probably required to correct an unforeseen outcome.
In August, the Illinois Gaming Board released software for three online sports betting certificates. The deadline for applications is December 3rd.
It is highly unlikely that anyone will apply for a separate license, as DraftKings and FanDuel have already established themselves as market leaders by partnering with Illinois gaming facilities. The incentive to pay $20 million for a separate license appears to be non-existent.
Swoik pointed out that sportsbooks must earn $400 million in order to cover the cost of the license with a 5% hold.
Illinois currently has nine sports betting facilities with two more Harrah’s on the way, along with five new casinos and one in Chicago, bringing the total to 17. Why would they want to invest $20 million to target the 18-20 age group?
Lawmakers had expected the in-person registration requirement to be eliminated once the IGB introduced online registration in the legislation they drafted.
According to Swoik, the problem is that once a permit is issued, it is unlikely to be revoked. If someone were to obtain a mobile license, it would expire in three to four months. It is uncertain what obstacles would arise in obtaining the license if a legislative solution passed during the filibuster program, as it would likely take effect soon after.
Will there be a game costs during the Illinois filibuster session?
Senator Cristina Castro recently informed Play Illinois that the Senate may review the costs during the veto session.
Swoik mentioned that aside from redistricting, he is not aware of any other policies that Illinois may address during the veto session.
If the Senate decides to address it, repealing the in-person condition could be included in SB 521.
Swoik thinks it could be because he is leaving his job at the end of the year.
He then mentioned that some lawmakers were concerned that the state might not receive the $60 million if they eliminated the in-person registration requirement. This could explain why they decided to delay making a decision until the next session instead of waiting to see if anyone applied.
“I think one concern is that if the in-person registration requirement is removed, there may be a lack of applicants for those three licenses, and at $20 million, Swoik noted, “I’m not sure anyone would apply anyway.” There is also concern that removing the requirement could cause those interested in the mobile license to no longer apply, resulting in a loss of revenue for the state.”
