Illinois to Welcome DraftKings Sportsbook to the State?

Illinois to Welcome DraftKings Sportsbook to the State

Illinois online sports betting took a great leap forward recently with the Prairie State accepting an application from sports betting, Daily Fantasy Sports and online casino giant, DraftKings. DraftKings officially applied for a management services license for sports betting on April 28, indicating that the company is seeking a ‘back door’ loophole entry into the protected Illinois sports betting marketplace. The loophole itself is via a management services application that could allow DraftKings faster entry to Illinois.

As Illinois law states;

“The sports wagering offered over the Internet or through a mobile application shall only be offered under either the same brand as the owners licensee is operating under or a brand owned by a direct or indirect holding company that owns at least an 80% interest in that owners licensee on the effective date of this Act.”

The move is seen too be a viable solution that would allow for DraftKings to skirt around a cumbersome 18 month waiting period for an online-only sports betting platform license.

Top Online Casinos in NJ

Risk Free First Bet up to $500
Bet Now
$250 Match Bonus: Code 250MATCH
Bet Now
Get A Risk-Free First Bet up to $500
Bet Now

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).

Top Online Casinos in NJ

Risk Free First Bet up to $500
Bet Now
$250 Match Bonus: Code 250MATCH
Bet Now
Get A Risk-Free First Bet up to $500
Bet Now

Why FanDuel & DraftKings are so Eager to Buy into Illinois Ahead of Time

Illinois is the fifth-largest state by population in the United States and as such, a potential sports betting gold mine (anticipated to become the third largest sports betting state) with a multitude of heavily-supported professional sports franchises – the Bulls, Bears, Blackhawks, Cubs and White Sox just to name a few.

BACK TO TOP