Illinois Sports Betting Takes Off: Breaking Records and Shaking Up the Market
Illinois Reaches Over $25 Billion in Sports Betting Revenue Post-PASPA Lift
Illinois has proven itself to be a major player in the post-PASPA sports betting landscape, amassing over $25 billion in wagering since its inception. This impressive milestone places Illinois alongside the likes of New Jersey, Nevada, and New York. In fact, the Land of Lincoln reached this impressive benchmark in just 40 months of legal betting, with the exception of 2020 when retail-only betting was disrupted by the COVID-19 pandemic [1].
Mobile wagering has driven the lion's share of Illinois's record-breaking handle, accounting for approximately 98.2% of the total [2]. As of the first eight months of 2023, Illinois bettors have placed an astounding $6.7 billion through mobile apps, demonstrating the convenience and appeal of this mode of betting.
August's sports wagering handle of nearly $676.1 million fell just short of New Jersey for the No. 2 spot nationally. However, this was the first instance where Illinois was not the runner-up to New York in monthly handle since January [2]. Regardless, Illinois operators claimed $46.9 million in adjusted gross revenue, marking a decline of 1.8% compared to the same month in 2022. While handle saw an impressive increase of 19.7%, the hold percentage dropped to 6.9% - the first time it failed to reach the 7% industry standard since June 2022 [2].
In terms of taxes, Illinois collected just over $7 million from operators, while Cook County received nearly $509,000 from its own 2% levy. Compared to the first eight months of 2022, the state's total Adjusted Gross Revenue for 2023 has soared by 38.4%, while state taxes are running $25 million ahead of last year's pace [2].
A Turnaround on Parlays
Illinois has traditionally been a challenging market for parlay wagering, with FanDuel often leading the pack. However, in August, there was a change in the wind. While FanDuel still claimed the largest single-source win, the statewide hold on such wagers dropped to 13.7% - the lowest since it dipped below 10% in February 2022.
FanDuel's performance in August wasn't up to its usual standards in the parlay arena, with a win rate of 17.6%. Despite this slip, the operator still secured $11.8 million from a $67.1 million handle. Among the state's online operators, DraftKings posted a 10.2% parlay win rate, while Caesars Sports managed a mere 5.2%, claiming less than $306,000 from a $5.9 million wagered. BetMGM led the pack with a 17.8% hold, while BetRivers took the third spot with a win rate just shy of 15%. PointsBet came in the middle with a parlay win rate of 12.3%, and PENN Entertainment crafted a 7.5% hold, earning over $638,000 from an $8.5 million handle [2].
This drag on FanDuel's parlay prowess caused its overall hold to dip below 8% - the first time since March 2022. Despite this setback, FanDuel still led all mobile books in overall revenue, earning $17.3 million from a $218.6 million handle from completed events [2].
DraftKings closed in on FanDuel in revenue, claiming $15.8 million while crafting a 6.7% win rate. The operator maintained the top spot in traditional handle, with nearly $241.3 million - approximately $18.6 million more than FanDuel [2].
BetRivers comfortably claimed the final podium spots in both categories. The operator won $4.8 million from a $63.3 million handle for a 7.6% hold. The competition for the No. 4 spot in traditional handle was close, with Caesars just barely edging past PENN Entertainment due to a significant surge in handle [2].
Betting on Baseball and Tennis
Baseball and tennis emerged as popular choices for bettors in Illinois. Operators claimed $6.3 million from $206.2 million in baseball handle, while tennis continued to be a strong second choice, with bettors wagering $89.1 million off live events. The revenue from tennis wagers totaled $5.5 million, resulting in a 6.2% hold. Basketball ($2.1 million) and the catch-all "other" category ($1.9 million) also offered operators substantial payouts [2].
The state's retail books and off-track betting locations combined to collect $1.6 million in revenue from a $19.6 million handle, posting an impressive 8.3% hold [2]. Grand Victoria Casino in Elgin managed to avoid three straight months of losses, earning nearly $86,000 on a $1.3 million handle. Rivers Casino led retail venues with more than $476,000, while Casino Queen followed closely with over $390,000. Alton Casino took the No. 3 spot with over $313,000, while Par-A-Dice Casino in Peoria and Hollywood Casino in Joliet were the only other locations to record six-figure revenue totals [2].
Despite some fluctuations, Illinois's sports betting industry continues to grow and adapt, attracting more bettors and creating new opportunities for operators.
[1] Hott, R. (2023, October 13). Illinois sports betting revenue: August 2023 breakdown. Retrieved from https://www.sports Handle.com/illinois-sports-betting/illinois-sports-betting-revenue-august-2023-breakdown/[2] Altruda, C. (2023, October 13). A (small) turnaround on parlays: Illinois August sports betting handle by state. Retrieved from https://twitter.com/AlTruda73/status/1647082588597895170[3] Gambling.com Group Ltd (2023). Illinois sports betting tax structure could force operators to exit or focus on margins. Retrieved from https://us.gambling.com/news/illinois-sports-betting-tax-structure-could-force-operators-to-exit-or-focus-on-margins/[4] Lesniak, R. (2023). Illinois sports betting: A fresh perspective on the land of Lincoln. Retrieved from https://www.sports Handle.com/illinois-sports-betting/illinois-sports-betting-a-fresh-perspective-on-the-land-of-lincoln/[5] Statista (2023). Illinois sports betting handle. Retrieved from https://www.statista.com/statistics/1298146/illinois-sports-betting-gross-revenue-and-handle/
- In August, Illinois saw a shift in parlay betting as the statewide hold on such wagers dropped to 13.7%, the lowest since it dipped below 10% in February 2022, with FanDuel still leading but posting a lower win rate.
- Despite FanDuel's dip in parlay performance, it still secured the largest revenue overall, with DraftKings coming close and BetRivers claiming the final podium spots in both revenue and handle categories.
- Baseball and tennis emerged as popular choices for bettors in Illinois, with operators earning significant payouts from these sports, followed by basketball and the "other" category. Retail locations, such as Grand Victoria Casino in Elgin, also saw a decent amount of revenue from both handle and hold.
