Illinois joins Ohio, New Jersey, and Nevada in states that have deemed the increasing adoption of sports events contracts to be against state-specific gambling legislation.

In the letter, the Illinois regulator claims the companies are violating the Illinois Wagering Act and Illinois Criminal Code. It emphasizes that under Illinois law, sports wagering is defined as “accepting wagers on sports events or portions of sporting events, or on individual statistics of athletes in sports events or combination of sports events.” 

It continues: “by any system or method of wagering, including, but not limited to, in person or on the Internet through websites or mobile devices.” 

The IGB has said it is “aware” that the companies are engaged in sports wagering in Illinois. It adds that it has not granted a license or authorized the companies to engage in wagering, and consequently, the activity constitutes illegal gambling. 

Unlike other states, the cease and desist letters do not specify a date for cessation. 

CEO Claims States Like Illinois Misunderstand Prediction Markets

The latest blow to event contract exchanges comes less than 48 hours after Ohio took action. Matthew Schuler, an Executive Director at the Ohio Casino Control Commission, commented: “Purchasing a contract based on which team a person thinks will win a sporting event is no different than placing a bet through a traditional sportsbook.” 

Kalshi has responded to C&D orders in Nevada and New Jersey by suing the regulator. Tarek Mansour, the company’s CEO, claimed that the regulators’ orders “fundamentally misunderstand prediction markets and undermine the foundation of U.S. financial markets, which are regulated by the federal government.” 

Wallach: Prediction Markets Heading for Legal Showdown

Industry experts believe that federal intervention will have to come soon. Gaming lawyer Daniel Wallach shared on X the timeline of Kalshi, CFTC appointments, and the current CFTC Commissioner’s views on sports events contracts. 

The views support sports events contracts. Industry suspicions that the CFTC was giving them the green light without publicly saying so seem increasingly true.

In March last year, Quintenz supported contracts based on NFL game outcomes while at the CFTC. Following his resignation from the Commission in November, he joined Kalshi. Kalshi also brought Donald Trump Jr. on board as a strategic advisor in the immediate aftermath of President Trump’s election victory. 

Wallach also points out that a Kalshi lawyer has since joined Elon Musk’s DOGE, who holds a prominent position in the President’s cabal. Quintenz, CFTC Commissioner, commented in 2021: “When we think of commodities, we think of tangible things. Oil, corn, gold. But what about an event? An election? Whether the Summer Olympics will occur in Japan? A football game? Those, too, are commodities!”

Wallach bluntly suggests that the roundtables put on by the CFTC are “all for show” and the result is “preordained.” He expects this CFTC to approve event contracts based on sporting event outcomes. He concludes by asserting that “there will be lawyers.”

This dispute will rumble on for the foreseeable future. If sports betting is effectively being ‘legalized’ at a federal level, where does that leave sports betting regulators and individual state regulation that has taken years to build? How do integrity frameworks fit in with exchanges? What constitutes a breach with regards to CFTC rules on the contracts? 

It’s just getting started.  

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The regulator issued the green-light, via a sports wagering operator licence, was to 815 Entertainment, d/b/a Hard Rock Casino Rockford, while Hard Rock Digital was approved as a sports wagering management service provider.

The venue was the first to open following the state’s 2019 gaming expansion legislation, with the November 2021 debut comprising over 37,000 square feet of gaming space that offered more than 625 slots and Interblock electronic table games

Illinois Governor JB Pritzker rubber stamped a $45bn ‘Rebuild Illinois’ action plan in July 2019, with a significant gaming expansion that would deliver six new casinos complemented by sports wagering also getting its introduction.

Furthermore, the IGB noted that the gaming establishment “must comply with Illinois Gaming Board rules before sports wagering can be offered in person or online.”

In addition, Betway, via its Digital Gaming Corporation subsidiary, was also announced as the sole applicant for an online only sports betting licence, which will not be tethered to a casino, racetrack or sports venue.

DGC had previously applied for a licence during a first phase, but ultimately pulled out of the race. Re-entry comes after the Super Group finalised the purchase of the company earlier in the year.

The IGB also granted more than 233 new gaming licences and related approvals for casino gambling, video gaming and sports wagering along with renewals. This included 109 video gaming locations.

“The board and staff continue their important work to implement the landmark gaming expansion law and regulate Illinois’ robust and evolving statewide gaming industry in an ethical, transparent, compliant, and efficient manner,” said IGB Administrator Marcus Fruchter.

Illinois is home to 13 casinos, more than 8,400 licensed video gaming establishments and nine sportsbooks. Casino gambling, video gaming and sports wagering generated more than $1.4bn in tax revenue to the state and local communities during the 2022 calendar year.

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With the Illinois Gaming Board set to oversee and regulate the industry, this bill would allow the state’s casinos and racetracks to apply for internet gaming licences with up to three skins on that licence. 

While the cost of each initial licence will be $250,000, the tax rate would be 15 per cent on adjusted gross revenue and the bill would also allow operators to deduct promotional credit. 

Dissimilarly to Illinois’ sports betting, there will be no mandatory in-person registration requirements attached to the legislation. However, the legislation will present stipulations to address responsible gaming efforts in addition to diversity efforts. 

These stipulations include the need for operators to establish a self-exclusion list and prominently display responsible gaming prompts on their online casino platforms. 

Castro’s bill will also prioritise diversity when it comes to hiring and vendor spending, using Massachusetts and Maryland’s approach to sports betting as a prime example. 

Under the remit of diversity, licensees will need to provide annual reports dictating their goals for the forthcoming year while outlining how they have performed on previous inclusivity goals. 

In order to avoid the criticism met with the sports betting launches in Massachusetts and Maryland, which were chastised for a slow-moving operation, this bill has laid out short deadlines to fast-track applicants, particularly those with existing licences in other states. 

Castro will hope that the continued success of The Prairie State’s sports betting space can set a precedent for the launch of its online casino market, making the difference from her efforts in 2021. 

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For the final quarter of the past year, net revenue is expected to rise from $38.5m to between $43m-$43.5m year-on-year, with operating income anticipated to reach $4.9m-$6.1m, which would represent a drop from 2020’s $7.7m.

Net income is slated to reach between $4.2m and $5.9m, up from Q4 2020’s $3.5m, with Full House reporting that adjusted EBITDA could reach $7.3m-$8.5m, which reflects adverse hold in its Nevada and Indiana segments and approximately $1.7m of expenses related to corporate initiatives that are not expected to recur.

Subsequently, the group is expecting to disclose a steller full year performance, which could bring a significant revenue increase from $125.6m to between $179.9m-$180.4m YoY.

Operating income is expected to increase from $10.5m to £36.9m-$38.1m, with net income anticipated to reach $10.9m-$12.6m, compared to $100,000 through 2020. Adjusted EBITDA in 2021 is expected to be in the range of $46.6m to $47.8m.

Last month, Full House Resorts was selected by the Illinois Gaming Board to develop its American Place casino resort in the city of Waukegan, with the firm subsequently announcing that it is to spend approximately $100m on a temporary facility.

This is said to include “significant” upfront gaming license payments, and the purchase of slot machines that are expected to be transferred to the permanent casino once opened

The venue is expected to open midway through the current year with in the region of 1,000 slot machines and 50 table games, subject to regulatory approval. 

Full House adds that it has also agreed to purchase approximately ten acres of “strategically important” land adjoining the 29-acre casino site to be leased from the city.

Elsewhere, the group has also increased its anticipated investment for its Chamonix Casino Hotel, currently under construction in Cripple Creek, to $250m.

Increased construction costs endured thus far are said to reflect supply chain issues, inflation, and a difficult construction environment, with management believing that there will not be further budget increases.

Full House adds that, due to state-wide gaming revenue upticks throughout Colorado, it “remains confident that its high-end Chamonix Casino Hotel project will earn a high return on investment”.

From July 2021 through November 2021, Colorado revenue increased 42 per cent versus the prior-year period, with Cripple Creek up 26 per cent and Black Hawk rising 50 per cent when compared to the same period through 2020.

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The state regulator voted unanimously to approve Wind Creek Illinois as the selected applicant, however, local media notes that this does not “guarantee of final licensure”. The timeline for awarding the licence is expected to continue into January.

The 70,000-square-foot casino, which is slated to open during 2023, is expected to feature 1,300 slot machines, 56 table games, entertainment, dining, a 252-room luxury hotel.

The project is will bring 800 jobs to Illinois’ south suburban region, as well as creating approximately 600 temporary employment opportunities during construction.

Wind Creek Hospitality, an authority of the Poarch Band of Creek Indians, manages 10 state and tribal gaming properties in Alabama, Florida, Nevada, Pennsylvania and the Caribbean

Jay Dorris, Wind Creek Hospitality President and CEO, said of the casino licence: “Wind Creek Illinois is honored to have been found preliminarily suitable for the south suburban casino license by the Illinois Gaming Board today.

“Throughout this process, we have reiterated the belief that we offer the best location in and for the south suburban region – and will deliver on our commitments to job creation, community and economic investment, sustained operational excellence, and a strong commitment to diversity and inclusion in all phases of construction and operation.

“We plan to open the facility in 2023 and look forward to expanding our network of relationships in the Southland, working closely with leaders, organisations and residents to ensure that the benefits associated with this project are felt by the entire region.”

Earlier in the week, Full House Resorts said that it would “begin working immediately” after being selected by the Illinois Gaming Board to develop its American Place casino resort in the city of Waukegan, subject to final licensing approvals.

The proposal was one of five submitted in response to the regulator’s ‘request for proposals’ process, and wraps up a competitive selection process that was launched in 2019.

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The proposal was one of five submitted in response to the regulator’s ‘request for proposals’ process, and wraps up a competitive selection process that was launched in 2019. 

This decision comes two and a half years after Governor J B Pritzker signed Bill SB 690 into law in Illinois, permitting the construction of six new casinos to add to its existing 10. Thus far only the Hard Rock Casino Rockford has opened for business.

This move also authorised casinos, racetracks and sports venues, with a capacity in excess of 17,000, to permit legal land based and mobile sports betting, in addition to allowing the city’s O’Hare and Midway airports to offer slots.

“We thank the Illinois Gaming Board for their confidence in Full House Resorts and for selecting our American Place proposal,” said Daniel Lee, president and chief executive officer of Full House Resorts. 

“We will begin working immediately on American Place, first with the development and construction of a temporary casino in Waukegan, Illinois. 

“Through our planned temporary facility – aptly named The Temporary by American Place – we will be able to quickly create jobs and generate tax revenues while the permanent American Place facility is being built. We expect to open our temporary facility in mid-2022.”

The gaming and entertainment destination is slated to incorporate a casino; sportsbook; hotel comprising 20 villas, each ranging from 1,500 to 2,500 square feet; 1,500-seat live entertainment venue; an array of eateries and bars; and other amenities in a bid to attract gaming and non-gaming patrons from throughout Chicagoland and beyond. A second phase of American Place is expected to include a four-star hotel with 150 rooms.

Lee added: “Our permanent American Place facility is designed to be a world-class destination for nearby Chicagoland residents and the entire region, and will include luxurious amenities such as an all-villa hotel with full butler service. 

“We are excited to join the Waukegan community and welcome the opportunity to bring our American Place vision to life, with completion of our full experience expected in 2024.”

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Following on from the receipt of sports betting and igaming market access in New York via a strategic 20-year partnership with Rivers Casino & Resort Schenectady, inked last month, PNG is eyeing its latest digital expansion.

This will come via plans to launch its Barstool Sportsbook mobile app on iOS and android, as well as for desktop users, at 12:00pm CST on March 11, 2021.

“We are extremely excited to launch our online Barstool Sportsbook in Illinois just as the college basketball regular season wraps up and bettors begin their preparations for March Madness,” explained Jay Snowden, president and CEO of Penn National. 

“Dan ‘Big Cat’ Katz started Barstool Chicago in 2012 and has worked with Chief, Eddie, Carl, and ‘White Sox’ Dave to develop a tremendous following across the state by covering all things Windy City through daily blogs and social media content, including the immensely popular ‘Red Line Radio’ podcast. 

“As the only gaming operator with a fully integrated sports media and entertainment partner, our customers in Illinois will now be able to engage with these Barstool personalities through the online Barstool Sportsbook and enjoy their unique take on Chicago sports.”

Last month, the operator praised the “tremendous growth” of its interactive division as playing a key role in striving to offset retail-based losses brought about via COVID-19 mitigation efforts.

An increasingly positive performance of its Hollywood Casino igaming product in Pennsylvania, strong showing at its 16 retail sportsbooks, and the introduction of the Barstool Sportsbook mobile app, were identified as key facets in driving the digital growth.

PNG expects to offer a number of promotional bets during the launch of the mobile Barstool Sportsbook in Illinois, including odds boosts on the Cubs and White Sox to win the 2021 World Series.

“On behalf of the Penn Interactive team and our partners at Barstool Sports, I want to thank the IGB for their approval of our online sports betting application,” added Snowden. 

“Alongside our risk management and platform providers, Kambi and White Hat Gaming, we have developed an online sports betting app which is attracting new and existing Penn National customers as evidenced by our performance to-date in Michigan and Pennsylvania. 

“We are eager to leverage the building momentum for the Barstool Sportsbook app with our launch in Illinois and the additional launches we have planned for 2021.”

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The proposed $87m 78,000 square-foot two-story addition for the property, which is jointly owned by Rush Street Gaming, would house a poker room, additional gaming areas, ballroom for events, and restaurant.

“Rivers is Illinois’ most popular casino destination, and with this expansion we are continuing to focus on our guests to earn their loyalty,” said Corey Wise, senior vice president and general manager of Rivers Casino. 

“We were the first casino to become land-based to expand our gaming floor. BetRivers was the state’s first sportsbook to open and we provided fans with the state’s first mobile sports betting option. When complete, we will be the first casino in Illinois to offer our guests 2,000 gaming positions.”

Initially, the expansion plan calls for the addition of 260 table game positions, a 70 per cent increase, and 439 slot game positions, representing a 48 per cent increase. 

Under the current plan, the facility will have 26 additional gaming positions to allocate in the future, and Rivers would pay the state of Illinois $24m in licensing fees in June 2021.

The plan is subject to regulatory approval from the Illinois Gaming Board, with the city of Des Plaines also having to approve the addition. If given the green-light, construction is expected to begin this spring and be completed by 2022.

“With this proposed expansion, we will be able to offer our guests more of the entertainment and dining options they enjoy, additional gaming opportunities and a long-desired poker room,” added Greg Carlin, CEO & co-founder of Rush Street Gaming. 

“We have always offered a first-class experience for our guests. As the economy re-opens, we’re excited to raise the bar and provide them with an even better experience.”

The post Rivers Casino Des Plaines files $87m expansion plan appeared first on CasinoBeats.

According to ‘approximate’ data released by the Illinois Gaming Board, bettors placed a record $451m in wagers in November, which is an increase of almost four per cent from $434.6m in October.

Only New Jersey ($931.6m) and Nevada ($609.4m), the two oldest legal sports betting markets in the US, and Pennsylvania ($491.9m) generated more in bets during November 2020.

November’s bets produced $41m in adjusted gross revenue for the operators, down slightly from the state record $42.2m in revenue generated in October. Those gains yielded $6m in state taxes.

“Illinois’ success is more than just a large population fuelling impressive numbers that dwarf smaller states,” commented Jessica Welman, analyst for PlayIllinois.com. 

“Illinois is rivalling markets such as Pennsylvania that are far more mature and just as large, and it’s doing it because the top online sportsbooks in the country are investing heavily in the market and Illinois bettors are responding with an unprecedented fervor.”

Analysts have stated that Illinois’ ascent “remains unprecedented,” with New Jersey not surpassing the $450m barrier until its 18th month and Pennsylvania reaching $462.8m in September 2020, 23 months after launch.

With retail sportsbooks shuttered for the second half of the month, online sports betting accounted for the vast majority of all bets. 

With only five online operators, Illinois is still home to a relatively short roster of sportsbooks, however, Penn National’s Barstool-branded app, BetMGM, and Unibet are among those that are expected to launch in the coming months.

“At this point, it makes sense to adjust our expectations up for the market,” noted Joe Boozell, analyst for PlayIllinois.com. “The retail market was shut down in November, and this was the first month since the market really heated up in July that the sports schedule was slower than the month before, and yet sportsbooks still made gains. Such resilience shows that Illinois is maturing more quickly than anyone imagined.”

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Triggered by increasing positivity rates of COVID-19, the ‘Restore Illinois’ resurgence plan outlines that new mitigation will be applied if a region’s positivity rate averages greater than or equal to eight per cent for three consecutive days.

Those regions in question are Metro East, which already faces stricter measures, that comprises the Bond, Clinton, Madison, Monroe, Randolph, St. Clair and Washington counties, and Northeastern Illinois, namely the Kankakee and Will counties.

Both regions are said have exceeded Illinois Department of Public Health criteria that trigger additional mitigations to combat a resurgence of COVID-19 and prevent uncontrollable spread

This will see a variety of measures become imposed upon all licensed gambling operations at the Hollywood Casino Joliet and Harrah’s Casino Joliet from 5pm on August 26, 2020.

This includes restricted hours of operations to between 8am and 11pm daily, casino occupancy reduced during the mitigation period from 50 per cent of fire code capacity to 25 per cent, indoor food and beverage service suspended with outdoor service, curbside and carryout permitted, as well as a mandatory mask ruling.

Similarly all video gaming operations at all licensed video gaming locations Northeastern Illinois will endure the same restriction to hours of operation and food and beverage service. 

Existing social distancing, sanitising and other mitigation protocols and measures in approved ‘Terminal Operator Pandemic Resumption Plans’ remain in effect.

Furthermore, beginning at 5pm on September 1, 2020, food and beverage service is suspended inside the DraftKings at Casino Queen and Argosy Casino Alton, with current mitigation measures, similar to those outlined above, remaining in effect after implementation began on August 18. 

The IDPH will track the positivity rate across both regions over a 14-day monitoring period to determine if mitigations can be relaxed, if additional restrictions are required, or if current mitigation should remain in place.

If the positivity rate averages less than or equal to 6.5 percent over a 14-day period, the region may return to the original guidance or a modified version as appropriate. 

If the positivity rate averages between 6.5 percent and eight percent, the new mitigations will remain in place. If the positivity rate averages greater than or equal to eight percent after 14 days, more stringent restrictions will be applied to further reduce spread of the virus.

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