Illinois’ state legislature passed a bill this weekend authorizing sports betting in the state, including mobile wagering, a mandate for some official league data, and in-venue kiosks.
The bill, which the governor is expected to sign into law, grants retail casinos an 18-month head start on the mobile market. The casinos will be able to begin accepting bets almost immediately whereas all other entrants—such as DraftKings and FanDuel—will have to wait until late 2020 or early 2021 to begin operations. Eilers & Krejcik Gaming estimated that DraftKings and FanDuel accounted for 79 percent of New Jersey’s mobile betting market in April. Illinois will limit online-only sports books to three licenses, each to be sold for $20 million. Mobile betting is widely projected to capture at least three-quarters of the betting market.
DraftKings CEO Jason Robins criticized the bill on Twitter, writing, “While it is good to see sports betting bills passed, excluding DraftKings and FanDuel is like passing a ride sharing bill that excludes Uber and Lyft. Very disappointing that Illinois customers will not have the best options available to them for 18 months.”
While the leagues will not receive any kind of royalty or integrity fee, they will receive direct revenue from a provision requiring official league data for all in-play and prop bets. Illinois is now the second state to mandate this, following Tennessee’s new law in May.
Large sports venues such as the Bears’ Solider Field and the Cubs’ Wrigley Field would be able to apply for licenses to install betting kiosks on site. The only other current U.S. legislation to enable installations at stadiums, arenas, and ballparks is the one passed by the District of Columbia, though its regulations have not yet been finalized. Capitals, Wizards, and Mystics owner Ted Leonsis has championed legalized sports betting and plans to install a sportsbook at his Capital One Arena. Currently, the only sports venues where a fan can legally bet are the ones with mobile sports betting, such as in New Jersey and Pennsylvania.
Illinois is now the 13th state with legal sports betting and the second-largest. The Land of Lincoln has a population of more than 12.7 million and had been the fifth-largest state in the U.S. until Dec. 2018, when a Census Bureau update indicated that Pennsylvania had surpassed it by a few thousand.
SportTechie Takeaway
Sports betting legislation in a state as large as Illinois is notable in its own right, but this bill creates and enhances some interesting precedents. While several sports books, especially MGM Resorts, have already licensed league data, most of that has been by their own choice. Now, with Illinois joining Tennessee in mandating official data for in-play bets, that legislative template could continue to gain momentum and ensure the leagues’ coffers get filled despite the lack of royalties. Also, as jarring as the idea is of a fan sitting in an MLB ballpark and placing a wager on his or her phone may be, the visual of fans walking by a concourse kiosk at Wrigley Field is doubly striking. But Wrigley, the White Sox’ Guaranteed Rate Field, and the Washington Nationals’ Nationals Park all could have physical in-venue wagers options next year.