Despite a rise in Covid-19 cases in Illinois, starting Sunday, April 11, sports bettors are now required to register for an account in person at a retail sportsbook. Governor J.B. Pritzker allowed his executive order to expire, effectively ending online registration which has been in place since August, leading to Illinois’ rank as the fourth-largest sports betting market in the U.S.
But analysts cautioned returning to the in-person registration requirement “puts the brakes” on the fast-growing Illinois market that has attracted $1.6 billion in wagers and generated $28 million in tax revenue since the state’s first legal bet was placed just days before Covid-19 closures in March 2020. The Illinois sports-betting industry posted more than $581 million in handle in January, an 18.3 percent rise from $491 million in December, including $7.2 million for the state treasury.
As observers scratched their heads over Pritzker’s turnaround, his spokeswoman Jordan Abudayyeh said, “Illinois is currently in Phase 4 with vaccination rates rapidly increasing and casinos around the state have reopened with safety guidelines in place, so the suspension of in-person sports betting registration requirements is no longer needed.”
When Illinois lawmakers passed sports betting legislation in 2019, they included an 18-month in-person signup period for online accounts, primarily to benefit casino sportsbooks. But Pritzker’s order closing casinos due to Covid-19 allowed the online sports betting industry to gain a foothold, especially when professional sports started up last summer. More than 95 percent of the sports bets placed to date in Illinois have been made online.
On June 8, Pritzker extended the online sign-up provision, then reversed course in July, then extended online sign-ups again on August 21. Since then, he renewed the order on a monthly basis until this past weekend.
Joe Boozell, lead writer at PlayIllinois.com, said, “We know that Rivers Casino in Des Plaines had lobbied for in-person registration because they have an advantageous location being located close to downtown Chicago, and in a world where nobody can’t sign up with their phones, they were sort of in pole position.” The in-person requirement also benefits Hawthorne Race Course, which has two suburban off-track betting sites where sports bettors can register.
However, the restriction is sure to impact the major online-only companies. Chicagoans will have to drive to the Par-A-Dice Casino in East Peoria to register with FanDuel, or even farther to the Casino Queen in East St. Louis to register with DraftKings.
PlayUSA.com Analyst Dustin Gouker said it was a “poor choice” to bring back the requirement as statewide handles set new records each month.
“Reversing that now essentially puts the brakes on that growth, and will artificially suppress online gaming in Illinois for as long as it is in place,” Gouker said.
State Rep. Mike Zalewski, sponsor of the 2019 sports betting legislation, said lawmakers might review the controversial provision. “It’s important to remember that without the in-person registration requirement, sports betting would have never been legalized in 2019 as it was a pivotal aspect of an agreement among all the stakeholders. That being said, the strong revenue numbers generated reflect that Illinois should have a robust online marketplace with no restrictions. I’m hopeful we can continue to modify the law and keep Illinois one of the most successful sports betting states in the country,” Zalewski said.
