How & Why the DraftKings IL Proposal Can Work
When Illinois’ State Legislature passed a gaming expansion bill back in 2019, a loophole provision was included in the legislation prohibiting the entry of online-only sports book operators such as FanDuel and DraftKings into the Illinois for a year-and-a-half, essentially giving bricks-and-mortar sportsbook operators already established a head start in race for Illinois sports betting business.
Companies making an application for the management services provider permit must pay an application fee of $1 million and upon approval, are subject to a renewal fee every four years with a levy of $500 000.
These management services licenses differ from the Illinois master betting license, the latter of which permit a company to directly offer sports wagering services. Still, the services licensing process (similar to the New Jersey method of working in partnership with a land-based casino partner or licensed racetrack betting facility) is a strict one with the applicants needing to provide the Illinois Gaming Board (IGB) with a wide of plans and data, including how the prospective applicant companies affirmative action policies propose to award procurement contracts to minority-owned and female-owned businesses.
DraftKings need look no further than FanDuel (their greatest rival), in how the fast-track procedure might work. FanDuel is employing a similar strategy with a management services license, but in the case of that company, they are looking at acquiring Fairmount Park racetrack in Collinsville, Illinois.
Potential DraftKings Illinois Partners
For their part, DraftKings will be looking for a land-based partner to confirm their entry into Illinois, preferably in the Chicago area, close to the city itself and surrounding suburbs, which will assist in converting much-needed start-up revenue.
Harrah’s Joliet is one potential target for DraftKings. Harrah’s is now owned by Caesar’s, who is one of the largest gaming companies in the world, a match made in heaven for DraftKings. If DraftKings is able to partner up with Illinois’ second most successful bricks-and-mortar casinos in Harrah’s it should be a huge potential lift for sports bettors in the Chicago metro area.
Other potential targets for DraftKings in Illinois may include the Casino Queen (a privately run business concern) and Jumer’s (a Delaware North holding – currently partnered with DraftKings at Mississippi’s Scarlet Pearl and with IGT in West Virginia).
