U.S. Sports Betting Reporting Reaches $5 Billion in September, Illinois Contributes $596 Million
Unleashing Sports Betting Frenzy: USA smashes $5 billion barrier in record-breaking month
In a groundbreaking development, the Illinois Gaming Board announced a staggering sports wagering handle of $596.5million for September, propelling the nation's monthly total past the $5 billion milestone for the first time in the post-PASPA era.
The momentous feat had been anticipated since multiple states, including Illinois itself, posted all-time record monthly handles. While Illinois didn't make it to the top, it came close, trailing only its impressive March figure of $633.6 million. Illinois joined the exclusive ranks of New Jersey, Nevada, and Pennsylvania, becoming the fourth state to surpass $6 billion in overall handle.
Wondering about Arizona's figures? They are yet to be revealed. As of now, the combined total from 22 states and the District of Columbia has hit an astounding $5.19 billion, blowing the previous record of $4.63 billion out of the water, thanks mainly to the NCAA men's basketball tournament. The convergence of NFL, Major League Baseball, and college football, coupled with the increasing popularity of parlay wagering, has fueled this unprecedented growth. Moreover, with more jurisdictions accepting legal bets than ever before, the online sports betting landscape is more vibrant than ever.
Illinois sports betting operators posted a revenue of almost $40 million for September, reporting a win rate of 6.7%, marginally lower than August. State tax coffers received nearly $6 million in receipts, while Cook County generated an additional $451,911. This year alone, Illinois has generated $53.9 million in tax revenue, trailing only Pennsylvania and New Jersey.
DraftKings leads the pack, but pays out more than it takes
DraftKings secured its spot as the only mobile operator in Illinois to exceed $200 million in monthly handle for the third time in September, with $229.8 million in wagers. However, the tables turned for DraftKings as bettors came out on top in games like baseball and basketball. Despite this, DraftKings' leading revenue driver was parlays, collecting over $8 million off $49.8 million wagered, showcasing a win rate of 16.13%.
DraftKings commanded a 40.8% market share among the six mobile operators in the state, with FanDuel (27.2%) and BetRivers (15.3%) closely following. Barstool and PointsBet found themselves in fierce competition for fourth place, with Barstool narrowly edging ahead with $44.9 million in revenue, and PointsBet trailing close behind with $41.6 million.
FanDuel maintained its reign as the top revenue generator for ten consecutive months, raking in over $16.7 million. BetRivers recorded its first second-place finish since October 2020, with a total revenue of nearly $7.3 million, as DraftKings' revenue dipped 9.6% from August.
Parlays dominate revenues but bring mixed results
While FanDuel's run as the top revenue generator in Illinois has been largely driven by parlays, they also proved to be a double-edged sword. September saw $10.7 million of FanDuel's revenue coming from parlays on a whopping 22.3% win rate. On the flip side, PointsBet relied heavily on parlays, with 61.3% of its revenue stemming from them, although this translated to a more modest win rate of 19.3%.
Overall, parlay wagering contributed nearly $22.9 million in revenue, making up 57.2% of the overall total. With parlay revenue for the year surpassing $171 million on $983.6 million wagered, it accounted for a solid 17.4% hold. The $25.7 million in tax revenue from parlay winnings alone represents 47.6% of the total taxes the state has received for the year so far.
Rivers Casino dominates retail sportsbook scene
Rivers Casino continues to headline the retail sportsbook scene, handling nearly $10.9 million in wagers and generating over $1 million in revenue for the fifth time since taking the state's first bet in March 2020. Retailers recorded an all-time high monthly handle of $25.8 million in September, surpassing the previous record of $24.7 million set in October 2020.
Despite lacking the Barstool Sportsbook for in-person registration, Hollywood Casino in Joliet nearly caught up to its Aurora counterpart in both handle and revenue, generating slightly more than $164,000 in revenue. The in-person house's hold of 9.3% resulted in close to $2.4 million in revenue, coming closer in line with the year-to-date win rate of 9.7%.
Emerging markets and potential for growth
As more states legalize sports betting, market leaders like New York, New Jersey, and Pennsylvania are expected to retain their positions. However, the focus remains on populous states like California and Texas, where the legal sports betting market is yet to open, hinting at potential for further market growth and shifts in market share.
Trends suggest that in the post-PASPA era, the states with the largest and most mature markets have surpassed $6 billion in overall sports betting handle. For instance, New York, with a population of over 19 million, dominates the market, averaging around $2 billion in monthly handle. The scene is ripe for friends and foes alike. It's game on!
- The extraordinary growth in sports-betting revenues in the United States is largely attributed to the convergence of popular sports like NFL, Major League Baseball, and college football, which fuel increased wagering on parlays.
- In a record-breaking month, the Illinois sports-betting market exceeded $596.5 million in handle, catapulting the nation's monthly total past the $5 billion milestone for the first time in the post-PASPA era.
- DraftKings claimed the top spot amongst mobile operators in Illinois, amassing over $229.8 million in wagers for September, with parlays emerging as its leading revenue generator, despite bettors coming out on top in games like baseball and basketball.
- Rivers Casino continues to dominate the retail sportsbook scene, generating over $1 million in revenue for the fifth time since taking the state's first bet in March 2020, and handling nearly $10.9 million in wagers.
- As more states legalize sports betting, populous states like California and Texas, where the market is yet to open, present potential for further growth and potential shifts in market share.
