Betway Backs Out in Illinois

Betway has proven to be very difficult to deal with in the past. Owned and operated by Digital Gaming Corp. (DGC), the Betway sports betting brand has shown a knack for causing issues during the licensing process in several states. After seemingly coming to a license agreement with the Illinois Gaming Board back in July, the mobile sports betting operator has again decided to pull its online license application.

The issues between these two parties started in 2021 during Illinois's first round of license processing. The two parties just couldn't reach a mutually beneficial agreement, which led DGC to pull its first license application.

Earlier this year, Betway took another shot but balked at an offer from the DGC for a chance at another sports betting license. The problem at the time involved the $20 million price tag the Illinois Gaming Board wanted to charge for securing a different kind of license. The offer came from the DGC based on a provision in the state's sports betting legislation that granted the Board permission to issue up to three (3) "sports betting only" licenses. It's noteworthy that Betway was the only mobile sports betting operator to initially receive this opportunity.

After due consideration in July, Betway's management decided they would go ahead and move forward to secure the available license. It wasn't until recently that Betway's management realized how difficult it was going to be to enter the Illinois market at this late date. The reality is they would have to wrestle away customers from already established mobile operators., something that's difficult to do with top operators standing in the way.

Faced with a big license price tag and the challenge of siphoning away customers from other top U.S. operators, it appears that Betway is officially done dealing with the DGC.

THe $20 Million License fee Problem

At $20 million for a sports betting license, Illinois has established itself as the most expensive state in terms of online gambling licensing. It goes well beyond driving Betway to the sidelines. In fact, other U.S. sports betting operators have been searching out alternative ways into the Illinois sports betting market.

In the cases of DraftKings and Fanduel, they just decided to invest in retail casinos or a racetrack. Other operators like BetRivers and Hard Rock Bet decided to partner directly with established retail casinos in Illinois. By owning or partnering with retail gambling establishments, securing an all-purpose gambling license creates a significantly lower license fee burden.

The general feeling among other potential operators is they should wait. Why? The state is in the process of granting retail casino licenses that will result in available sports betting relationships in the next few years.

New Retail Casino Licenses Approved for Bally's and Golden Nugget

With other sports betting operators willing to play the waiting game, good news came from the Illinois Gaming Board. They have officially granted permanent retail casino licenses for Bally's in Chicago and the Golden Nugget in Danville. Both operators are currently running temporary facilities with the promise to open permanent facilities in the coming months.