In May 2018, the sports betting landscape in the United States was forever changed. New Jersey had won an important Supreme Court victory which unlocked federal strictures on gambling across the country, paving the way for each and every state to propose, establish and process their own legislature.
By the end of December 2019, Nevada was no longer the only state in the US where sports betting was fully legalized and regulated. 14 other states highlighted by ESPN had pushed through legislature which opened the door to full-scale legalized sports betting. Meanwhile, 7 other states had successfully passed sports betting bills, including Illinois. Elsewhere, 27 states are moving closer to legalization, with just 6 states yet to propose new gambling laws.
After legislature was approved in the summer and since September 2019, via their offices based in Springfield and Chicago, the Illinois Gaming Board has started offering licensing applications. Although it’s not yet clear how long it will take to process these applications, there are some limitations over the initial rollout that will take place over eighteen months, focusing on existing casinos, sports arenas above a certain capacity, and horse racing venues.
As the state which set the ball rolling following their landmark triumph in the courts, New Jersey wasted no time in quickly establishing legislation and processing license applications for operators. Now that betting legally in NJ is more established, there are around 17 licensed sportsbooks listed in the Garden State, along with 27 different brands operating 46 fully-legal websites.
These are currently owned by, or partnered with, one of the 7 bricks-and-mortar casinos and 2 racetracks already granted gambling licenses by New Jersey. Although this is a relatively small number compared to companies and operations in countries such as the United Kingdom, where there are more than 80 betting companies and quite literally hundreds of gaming websites available, the industry is set to boom in New Jersey and more will come soon.
Likewise, the tax revenues from legalized gambling are also injecting funds into the state economy. According to a report published by MarketWatch, around $4.6 billion has been wagered on sports after betting was made fully legal in June 2018. Between then and September 2019, New Jersey has also generated $36.12 million in state tax revenue. New Jersey currently charges an 8.5% tax on bets made in person and 13% for online and mobile bets.
By comparison, legal sports betting in the city of Chicago and Illinois is still in its infancy. While similar initial steps to New Jersey are being taken, with bettors required to register in person and be over the age of 21 in order to place their bets, either at land-based venues or online, the application process for gambling operators is yet to be fully clarified by the Illinois Gaming Board. This means that the industry has yet to get going at the same pace as other states.
Delays and due diligence in Illinois and Chicago
Taking a quick look at the Illinois Gaming Board website, as of January 2020, the list of sports wagering applicants and licensees is still empty. Without any clear indication as yet to how long the application process will take, it’s currently uncertain which operators will be amongst the first to offer fully legalized sports betting in the state.
However, the Chicago Sun-Times printed news back in November 2019 that applications would be available from the following December. They also highlighted that while there was no indication regarding the processing time for these applications, sports wagering licenses would initially cost $10 million each. All of the existing 10 Illinois casinos and 3 state racetracks indicated they would be joining the process of obtaining sports betting licenses.
One important difference for Illinois, compared to other states where the betting industry has been rolled out more swiftly, is that sports betting fans in the Windy City and Prairie State will have to wait much longer to bet online with additional operators. Online-only companies and sports betting websites will have to wait a further 18 months before they can apply for sports betting licenses. These online operating licenses will also cost around $20 million to obtain.
Although neighboring states such as Indiana and Iowa have managed to roll out legal sports betting much faster, with the industry launching operations fully by the summer of 2019, despite rules and regulations for the governance of sports betting still being drafted. Instead, the Illinois Gaming Board is taking a steadier approach, ensuring due diligence is done with all licensing applications. They want to ensure the industry in their state is safe and secure, fully regulated and transparent, with clear guidelines for the road ahead.
Conclusion
While other states have fired their starting pistol, with legal sports wagering already open for business, people keen to back their favorite teams in Chicago and Illinois will just have to be a little more patient. There’s no doubt that a plethora of great options will come, before too long, both online and offline. This will include sportsbooks available at Soldier Field and Wrigley Field, the United Center and many more sporting venues.
Whether your passion is baseball or basketball, football or soccer, ice hockey or even rugby and lacrosse; backing your local Chicago teams and betting on their fortunes is just around the corner.
