DraftKings has found a backdoor around Illinois’ rules allowing the firm quick entry into an online-based sportsbook space of the state’s gambling market.
The firm had filed papers with the state’s Securities and Exchange Commission indicating its plan to offload a portion of its shares while prices were still in the post-IPO stratospheric range. However, this update also came with the firm’s opportunities in Illinois.
As has been detailed by local media, based on the notes in the filling done on the 10th of June, the firm entered a multi-year deal with Casino Queen Inc., which would see the two share online sportsbook service and this would provide DraftKings with an opportunity to join the Illinois market. Casino Queen is one of the few firms in the state with a master netting license.
The betting law that was passed by the state in 2019 requires a delay by 18 months between the launch of betting retail and the unveiling of at most three online-only operating licenses. However, this delay is intended to enable physical businesses enough time to create a relationship with local gamblers before big players come in from outside the state.
The law allows online-based operators to work with local casinos. However, the final online product must be run under the local firm’s brand. So, when DraftKings’ application rolls out, it will have a Casino Queen insignia.
The SEC application also indicated that the partnership is expected to last anywhere between 5 and 10 years, and the two will work exclusively in the state. The deal also mandates DraftKings to pay their partner a small fee that will be calculated based on net revenue from the state.