DraftKings, Casino Queen ink Illinois sports betting deal

Sports betting operator DraftKings has found a way around Illinois rules aimed at delaying the entry of online-only sportsbooks into the state’s regulated wagering market.

Two weeks ago, DraftKings filed papers with the Securities and Exchange Commission (SEC) detailing plans by company insiders to unload some of their shares while the price was still in the post-IPO stratospheric range. But the filing also contained an update on the company’s Illinois opportunities.

As first noticed by Sportico, the filing notes that on June 10, DraftKings “entered into a multi-year arrangement with Casino Queen Inc. for retail and online sportsbook services providing us access to the Illinois market.” Casino Queen, an employee-owned venue in East St. Louis, was among the recipients of an Illinois ‘master betting license’ earlier this month.

The betting legislation that Illinois approved last year called for an 18-month delay between the launch of retail betting and the launch of a maximum three online-only licensees. This ‘time out’ was intended to allow the state’s brick-and-mortar casinos a window in which to establish relationships with local bettors before the big boys rolled in from out of state and sucked all the oxygen out of the room.