Gambling regulators turn another page in epic sports book tome, handing licenses to 7 casinos

The Illinois Gaming Board granted master sports wagering licenses to seven casinos Thursday, marking a sizable one-time jackpot for the cash-strapped state — but still leaving bettors stuck on the sidelines in the middle of the coronavirus pandemic.

With the casinos approved to open sportsbooks while remaining shut down indefinitely due to COVID-19, there’s still nowhere for Illinois gamblers to wager on NASCAR, pro golf or other sports that have returned to the playing field.

That’s because even with the long-coveted licenses in hand, Gaming Board rules require the casinos to separately request approval to begin taking bets online or through mobile applications, the betting platforms that account for the bulk of the handle in other states that offer it.

But awarding the licenses injects a cool $40 million-plus into state coffers through one-time fees, which vary for each casino based on a percentage of its gross revenue from last year, capped at $10 million.

It doesn’t come close to covering overall gambling tax revenue lost to the shutdown — casinos raked in more than $114 million for the state from March through June 2019, while video gambling terminals netted it nearly $147 million — but Gov. J.B. Pritzker’s administration will take every penny it can for the reeling state. The Democratic governor signed a revised operating budget Wednesday that’s heavily reliant on borrowing after the shutdown left a $2.7 billion shortfall.

Two of the approved casinos — Rivers in Des Plaines, and the downstate Argosy Casino Alton — briefly took the state’s first-ever legal sports bets under temporary operating permits three months ago, just days before the coronavirus crisis spoiled the Illinois industry’s launch. Blackhawks announcer Eddie Olczyk placed the state’s ceremonial first bet March 9.

But all 10 Illinois casinos — and the vast majority of sports leagues around the world — were shuttered by March 16.

Ashlee Rezin Garcia/Sun-Times

The five other casinos handed sports betting licenses during an unprecedented virtual Gaming Board meeting Thursday — the agency’s first in four months — were the Grand Victoria in Elgin, the Hollywood Casinos in Aurora and Joliet, Par-A-Dice in East Peoria and the Casino Queen in East St. Louis. Sports betting licenses last four years, renewable at $1 million a pop.

Their awarding also starts the clock on the 18-month “penalty box” period for online-only sports betting giants such as FanDuel and DraftKings. The state’s massive gambling expansion law, signed last summer, was written to give brick-and-mortar casinos a head start over those companies, which previously operated in the state in a gray area of daily fantasy sports eventually deemed illegal by former Illinois Attorney General Lisa Madigan.

Once they’re out of the box, the online-only companies would be stuck with colossal $20 million initial licensing fees.

The casinos will try to grab hold of the online market in the meantime. Pritzker threw them an assist in that last week, adding a provision to his coronavirus disaster proclamation that allows bettors to register for sports wagering accounts online instead of in person at a casino as initially required under the law.

That means residents will be able to start an account and wager from home as soon as one of the licensed casinos puts in a Gaming Board request and is approved for online wagering. No requests had been submitted as of Thursday afternoon.

“Every licensee is treated independently and there is no set timetable to commence wagering. Requests will be granted once received if the licensees meet all necessary requirements,” Gaming Board policy director Joe Miller said in an email.

Either way, casino operators are hoping they’ll be able to reopen their doors by the end of the month under Pritzker’s reopening plan. The Gaming Board issued protocols earlier this week, but the timing is up in the air as each casino needs approval for its own reopening plan. Indiana casinos are poised to reopen June 15.

The state’s three horse racing tracks have also applied for sports betting licenses but aren’t yet approved. Large sports facilities such as Wrigley Field and the United Center are eligible to apply for sportsbooks too, but none have so far.