DraftKings secures the lead in Illinois' gaming market, but faces the question of expansion potential.
**DraftKings Maintains Lead in Illinois Sports Betting Market**
Following the removal of the in-person registration requirement for mobile sports betting in Illinois on March 5, 2022, DraftKings has continued to dominate the state's online sports betting market.
The simplified registration process has generally increased accessibility and convenience for users, potentially benefiting DraftKings by making it easier for new customers to join. However, the streamlined process may also enhance competition among sportsbooks, as more users can easily explore different platforms.
Despite the increased competition, DraftKings has remained the top online sportsbook in Illinois, consistently capturing at least one-third of the state's online handle market share. Illinois bettors have placed the highest handle of any state where DraftKings operates, generating over $1.25 billion in online handle since August 2020.
DraftKings' revenue for the first quarter of 2021 was $312 million, a 175% increase year-over-year. In the first three months of 2021, the company generated $38.2 million of revenue via sports betting in Illinois.
However, DraftKings faces challenges as the Executive Order allowing remote signups has ended. This means that prospective DraftKings users must visit Casino Queen in East St. Louis to sign up. Barstool Sportsbook and PointsBet, on the other hand, have the advantage of being able to draw from the Chicagoland area for in-person registration.
Barstool Sportsbook, with its rebel-like feel thanks to founder Dave Portnoy's social media presence, has also made a significant impact in Illinois. The IGB report shows that Barstool Sportsbook's first month of operation in Illinois generated nearly $46.9 million of wagers. PointsBet also had a strong showing in February, with a handle of $52.9 million, making it their second-best month in Illinois.
As the market continues to evolve, DraftKings will need to sustain its momentum to maintain its lead in the Illinois sports betting market. The company will also have to navigate the challenges posed by increased competition and the introduction of a per-wager tax starting July 1, 2025. Despite these challenges, the expanding sports betting landscape in Illinois offers potential opportunities for growth, including potential opportunities in in-stadium sports betting.
DraftKings, having captured at least one-third of Illinois' online sports betting market share, continues to maintain its lead even with increased competition from sportsbooks like Barstool Sportsbook and PointsBet, who have seen significant success with their platforms. The company's revenue, already substantial, could further grow with the introduction of in-stadium sports betting opportunities in Illinois' evolving sports betting landscape.
