As Rivers Casino in Des Plaines took the first legal sports bet in Illinois Monday, the point spread grabbing most of the headlines was on Wall Street, where the stock market suffered its worst one-day loss since the Great Recession.
The BetRivers Sportsbook launched ahead of the potentially lucrative March Madness basketball tournament, but with growing fears over the coronavirus outbreak roiling the economy, the timing may be less than auspicious.
“We’ll get through this virus,” said Neil Bluhm, the Chicago real estate developer whose Rush Street Gaming built and operates Rivers Casino. “The market may go down, but ultimately it’s going to go up.”
Casino executives, gaming board officials and politicians were on hand to watch former Chicago Blackhawks star Eddie Olcyzk place the first sports bet Monday morning. But the elephant in the room was the spreading coronavirus outbreak, which triggered a stock mark selloff and could tamp down business as BetRivers gears up for the NCAA men’s basketball tournament tipoff March 17.
Bluhm acknowledged the virus and the economic volatility could impact the sports book. But he said when Rivers Casino was granted the state’s 10th casino license in 2008, the nation was mired in the Great Recession — an even more foreboding economic environment.
“When we were awarded this license, things were a lot worse,” Bluhm said. “At the end of 2008, we were inches away from being in a depression.”
By the time Rivers opened in 2011, the economy had recovered and the casino quickly became the top grossing gambling facility in Illinois. Bluhm said he remains “very optimistic” about the future for BetRivers and sports betting in Illinois.
The Illinois Sports Wagering Act, passed last year as part of a broader gambling expansion bill, allows the state’s 10 casinos, three horse tracks and seven of the largest sports venues to acquire a sports gaming license. Rivers was the first of six casino applicants to open its sports book, but several are imminent.
Argosy Casino Alton near St. Louis announced Monday it is planning to open its sports book on March 16 — one day ahead of the first March Madness games, though it still needs approval from the Illinois Gaming Board.
“We expect to have a soft opening prior to then,” said Michael Barker, a spokesman for the Argosy Casino Alton.
The Argosy sports book will be inside a converted and expanded casino sports bar, with 40 big-screen TVs, four teller windows and 14 sports betting kiosks.
Penn National Gaming operates the Argosy Casino Alton, as well as the Hollywood Casinos in Joliet and Aurora, which are also launching sports books. Jeff Morris, a Penn National Gaming spokesman, said Monday there will be more information “soon” on the suburban Chicago sports book openings.
Illinois became the 15th state to have live sports betting. The state is projecting sports betting to generate between $384 million and $680 million per year in adjusted gross wagering receipts — revenue after winnings are paid, according to a report published in September. At the enacted tax rate of 15%, that would result in annual state tax revenues of between $58 million and $102 million.
Both Rivers and the Argosy are taking steps to assuage concerns over the coronavirus in preparation for their inaugural March Madness sports bettors.
At Rivers, there is a sign at the entrance with advice from the Centers for Disease Control and Prevention. Inside the casino, crews are working to sanitize everything from the slot machines to the sports betting kiosks, according to Rivers spokesman Patrick Skarr.
“There are cleaning personnel on duty around the clock, cleaning the equipment and surfaces,” Skarr said Monday. “We have alcohol-based sanitizing stations throughout the facility for our team members and guests.”
Bluhm said Monday Illinois sports bettors who have been wagering illegally now have a platform that is “highly regulated” and “honest.” He pointed to the launch of online betting at Rivers later this year as a significant opportunity to bring sports betting to a wider audience.
While the Rivers bricks-and-mortar sports book is opening in a challenging environment, Bluhm said he is confident it will ultimately prove successful. But as to the coronavirus, the 82-year-old is not taking it lightly.
“This is an unusual virus,” Bluhm said. “It isn’t that lethal, except for older people. That’s why I’m shaking hands with my elbow.”