Gambling Titans Want to Cash In on Sports Betting
Fans might be more interested in which Chicago baseball team, or even one from St. Louis, will fare the best this fall, but a growing rivalry in Springfield has turned into a behind-the-scenes fight over who corners the market first with sports betting.
A back-and-forth battle is underway between Rush Street Gaming, which operates BetRivers Sportsbook at the Rivers Casino in Des Plaines and two titans of the nascent American sports betting industry, DraftKings and FanDuel.
Originally, bettors in Illinois were required to place bets or register for the online gaming app in-person. That was done to put DraftKings and FanDuel in the “penalty box” after former Illinois Attorney General Lisa Madigan said they were operating illegally before lawmakers in Springfield signed off on legal sports wagers.
“The penalty box was a subject of debate over a couple of legislative sessions,” said Dennis Culloton, a spokesman for Rush Street Gaming. “The notion of a so-called ‘penalty box’ was to even the playing field for the brick and mortar casinos. The fantasy companies came in and flouted the rules and flouted the law.”
Blackhawks legend Eddie Olczyk placed the first bet at Rivers Casino to much fanfare in March. Then two days later, the global pandemic brought the sports world to a sudden stop.
“No one envisioned we’d have a global pandemic,” Culloton said.
Governor JB Pritzker signed a “stay at home” executive order allowing people to register online during the early days of the COVID-19 pandemic. Illinois may need the revenue from the bets but requiring people to risk contracting the virus to register made little sense, the Governor implied at the time.
Online registration was a big win for DraftKings who tried to get around the so-called penalty box by partnering with Casino Queen in East St. Louis to launch its sportsbook. DraftKings has the name recognition, but few Chicagoland bettors were likely to drive across the state to sign up at Casino Queen Sportsbook when Rivers Casino was much closer. Online registration swung the door open on the penalty box.
Pritzker let his executive order lapse so for a time it was back to only registering in-person at a brick and mortar casino. Then online registration was brought back yet again after he extended the original executive order until at least September 19th. Meanwhile, the two sides are inundating Chicago sports broadcasts and sports talk radio with advertising to build a bettor base.
The back and forth got nasty recently after DraftKings co-founder Jason Robins wrote on Twitter, “Feels so good to be taking mobile registrations in Illinois. Especially after the corrupt idiots at Rush Street Gaming tried to block us in the state. Over the long run, good policy always wins.”
Robins later deleted the tweet.
“I don’t think the social media posting dignifies any additional response,” Culloton said.
DraftKings did not agree to an interview.
Culloton said he would not speculate what will happen when Pritzker’s executive order expires in a few weeks. A spokesperson for Pritzker did not respond for comment. How much tax revenue the state has brought in since March, online or in person, hasn’t been released by the Illinois Gaming Board.
“(DraftKings has) certainly spent a lot of money on lobbyists but not a lot of money on paying taxes and employing people in the state,” Culloton said.
Rush Street Gaming is not lacking funds for clout, though. It is owned by billionaire casino owner Neil Bluhm, a heavyweight Democratic donor. Bluhm or Rivers has donated about $200,000 to Democratic lawmakers since 2016, many integrally involved with gaming negotiations. He has also donated about $100,000 to GOP lawmakers in the same time. Bluhm’s daughter, Andrea, donated $100,000 to then gubernatorial candidate Pritzker in August of 2018. Around the same time, his son Andrew gave $50,000 to then-incumbent Bruce Rauner. It could have been considered an attempt to hedge bets with whoever would be elected Governor.
Sports fans might feel like they are watching a heavyweight boxing match following the rollout of sports betting in Illinois. But, as the back and forth between Rivers and DraftKings continues, a few haymakers may be thrown in before a winner is called.