Illinois reopens online-only sports betting license applications after only remaining bidder drops out

The Illinois Gaming Board introduced Thursday it has reopened the appliance course of for 3 online-only sports activities betting licenses after the one remaining preliminary bidder dropped out.

Tekkorp Digital, a Las Vegas-based clean verify firm, known as off plans to amass Caliente Interactive, a Mexican gaming firm with ties to a controversial Tijuana enterprise proprietor, and submitted a request to withdraw its software for the Illinois on-line sports activities license earlier this month. The request was accepted by the gaming board Oct. 17.

With no different candidates within the pipeline, the state will reopen the choice course of Nov. 1, hoping to search out certified bidders keen to pay a $20 million licensing charge to function certainly one of three online-only sportsbooks allowed by the Illinois Sports activities Wagering Act. Candidates can have till March 1 to submit a bid.

The state struck out in its first try to land an online-only sportsbook to enter the aggressive Illinois sports activities wagering market.

4 corporations utilized to the Illinois Gaming Board final 12 months for the three on-line licenses, which aren’t tethered to casinos, racetracks or sports activities venues.

Tipico, a global sportsbook based mostly in Malta, missed the Dec. 3 deadline and was rejected by the gaming board.

Digital Gaming, a Florida-based firm, withdrew its software after submitting.

Fubo Gaming, a division of New York-based streaming service FuboTV, was notified in April that “it didn’t meet the minimal {qualifications} and was disqualified,” in response to the gaming board. On Oct. 17, FuboTV introduced it was closing its Fubo Gaming subsidiary and ceasing operation of its on-line sports activities wagering enterprise to “attain long term profitability objectives.”

That left Tekkorp/Caliente as the one remaining applicant, however its bid was dealing with more and more lengthy odds in current months.

In Could, a Washington, D.C.-based nonprofit known as Cease Predatory Playing despatched a letter to Gaming Board Administrator Marcus Fruchter expressing concern that Caliente Interactive is a part of Grupo Caliente, a Mexican gaming firm owned by Jorge Hank Rhon, the previous mayor of Tijuana. The group raised decades-old allegations that Rhon was concerned in all the things from drug trafficking to the unlawful transportation of endangered wildlife.

Whereas Tekkorp refuted claims that Caliente Interactive was owned by Grupo Caliente, the issues proved moot. In a September proxy submitting, Tekkorp mentioned capital market circumstances had deteriorated and it was exploring “various alternatives” with Caliente. The corporate was looking for an Oct. 13 shareholder vote to increase the merger deadline.

In an Oct. 4 submitting with the Securities and Change Fee, Tekkorp mentioned it was now not pursuing a merger extension and would start winding down operations Oct. 26.

Illinois sports activities betting generated $8.5 billion in wagers and $611 million in adjusted gross receipts — the cash saved after winnings are paid out — in fiscal 12 months 2022, in response to an annual wagering report launched by the state final month. That represents a 61% enhance in income throughout the fiscal 12 months, which ended June 30. At a 15% tax charge, the state collected $92 million in tax income, together with one other $50 million in licensing charges.

The state has 9 working retail sportsbooks, seven of which provide on-line sports activities betting. In March, Illinois completely waived the in-person registration requirement, permitting on-line platforms to compete for purchasers throughout the state. On-line wagering accounted for 96% of the sports activities betting income generated in Illinois throughout fiscal 12 months 2022.

FanDuel, which is related to the Fairmount Park horse racing monitor close to St. Louis, was the state’s prime sportsbook, with greater than $253 million in adjusted gross receipts for the 12 months, in response to the report. DraftKings, which is partnered with the On line casino Queen in East St. Louis, was the state’s No. 2 sportsbook with practically $148 million in adjusted gross receipts, adopted by BetRivers in Des Plaines at about $99 million.

Illinois ranks third in complete deal with among the many states which have authorized sports activities betting, in response to a September report by Eilers & Krejcik Gaming, a California-based analysis and consulting agency.

rchannick@chicagotribune.com