In a testament to the thriving sports betting market in Illinois, the state’s total handle for May reached an impressive $1.02 billion. This mark not only surpasses last year’s $821.7 million by 21.9%, but it also sets the stage for the ninth consecutive month that Illinois has seen its betting handle exceed the billion-dollar threshold. However, a noticeable dip from April’s $1.10 billion can be seen, showing an 8.9% decrease month-over-month.
A substantial portion of these wagers was placed online, with $985.7 million being staked through the state’s eight approved internet operators, based on data from the Illinois Gaming Board. Retail locations, meanwhile, accounted for $31.0 million in wagers.
Professional sports dominated the scene, contributing $1.01 billion to the total bets for May. Of this, $980.7 million was wagered online, while $30.9 million came through retail sportsbooks. In the realm of college sports, players staked $3.7 million in total, with $3.6 million of that amount placed online and $62,935 in retail betting. Additionally, motor racing saw a wagering volume of $1.4 million.
In terms of revenue, May yielded an adjusted gross revenue (AGR) of $100.9 million, reflecting a 13.4% increase from the previous year and a 9.7% rise from April, despite the drop in total handle. This resulted in a 9.9% hold rate for the market. Online betting was the primary revenue generator, contributing $98.1 million, while retail betting made up $2.8 million of the total revenue.
A significant portion of this revenue, about $54.
.3 million, originated from Cook County, which includes the major metropolitan area of Chicago, home to approximately 2.7 million residents.
When examining individual operators, FanDuel, in partnership with Fairmont Park, led the pack in terms of AGR. FanDuel posted $43.0 million in adjusted gross revenue from $340.1 million in total bets, achieving a hold of 12.6%. On the other hand, DraftKings topped the charts in terms of handle, processing a remarkable $386.4 million in May. Despite this, its weaker hold of 8.0% translated to a revenue of $30.9 million.
Trailing these front-runners, BetRivers and Midwest Gaming and Entertainment reported $7.6 million in revenue. Close on their heels were Fanatics and their partner Hawthorne Race Course, who generated $6.6 million in revenue from a 10.1% hold on $65.5 million in wagers.
Other notable mentions in the Illinois market include ESPN Bet and HC Aurora, which amassed $4.8 million in May, Caesars and Elgin Riverboat Resort, which brought in $3.6 million, and BetMGM and Par-A-Dice, which recorded $3.4 million in revenue.
The operators collectively paid $15.1 million under the state’s 15% levy on AGR for May, and this rate will remain applicable throughout June. However, a significant shift is on the horizon, as Illinois’ new progressive tax rate is set to take effect from July 1.
This new tax structure, surpassed only by New York’s 51% rate for sports betting, implements a sliding scale based on revenue. The hardest hit will be market leaders DraftKings and FanDuel, who will incur a 40% levy as their revenue surpasses $200 million.
For Rush Street Interactive, which holds the third position and any company with an AGR ranging between $50 million and $100 million, the tax burden will double to 30%. Meanwhile, companies like Fanatics, ESPN Bet, BetMGM, and Caesars, with revenue brackets between $30 million and $50 million, will face a 25% tax.
Even smaller players in the market, such as Circa Sports, which lags in revenue generation, will see their tax rates increase to 20% of AGR under the new system.
The coming changes mark a critical juncture for Illinois’ sports betting landscape, as operators must adapt to updated regulatory frameworks while maintaining robust revenue streams. This evolving scenario will be closely watched by analysts and stakeholders in the gambling sector.
