A new law was passed in Illinois that allows sports fans in the state to bet on their favorite teams from a mobile device. In a similar move, the NFL has entered a licensing deal with an analytics firm. Both of these efforts come as the game’s business model is being disrupted by the proliferation of cord-cutting.
Before the bill was passed, the NFL met with a number of governing bodies and gaming operators to determine the best course of action. They wanted to know what types of laws would protect consumers, ensure fair markets, and create clear lines of betting. Ultimately, they concluded that sports betting should be legalized as a separate entity, but it should be regulated to protect consumers.
The NFL has also reached agreements with sportsbooks. These are like financial-services brokers who offer wagering on major league and college sports. Sportsbooks take a percentage, or “vig,” of the bet. This “vig” can be lowered if a bettor places a bet using a mobile app.
There are currently four retail sportsbooks in the state. The new law allows for mobile betting and in-person betting. DraftKings is one of the two official MLB betting partners. It offers a variety of promos and rewards programs.
A third partner, PointsBet, has teamed up with the NBA and XFL. DraftKings is also an official betting partner for the UFC. All three of these deals are expected to generate $350 million in revenue.