Illinois Sports Betting Handle Drops Below $1 Billion Mark in June

The Illinois Gaming Board’s recent report showed a decline in the state’s sports betting handle for June 2024, dropping to $848.1 million. This figure represents a 16.9% decrease from the $1.02 billion wagered in May 2024, breaking a nine-month streak of surpassing the $1 billion mark.

Despite the decline, the June handle still reflected a 27.4% increase compared to the same month in the previous year, indicating the continued growth and maturation of Illinois’ sports betting market.

The data from the Illinois Gaming Board further highlights the evolving dynamics between online and retail sports betting in the state. Of the total bets placed in June 2024, a staggering $823.7 million, or 97.1%, was wagered through online platforms, while the remaining $24.4 million, or 2.9%, was placed at retail locations.

This disparity reflects the growing dominance of online sports betting in Illinois, as players increasingly embrace the convenience and accessibility offered by digital platforms.

The Illinois sports betting market showcased a clear preference for professional sports wagering in June 2024. The data reveals that $839.6 million, or 99.0% of the total handle, was attributed to bets on professional sports, with $815.5 million of that placed online.

In contrast, college sports attracted $7.2 million in bets, while motor racing saw $1.3 million in wagers. This breakdown underscores the popularity of professional sports among Illinois bettors, who are drawn to the high-stakes competition and the wealth of data and analytics available to inform their wagering decisions.

Despite the decline in the overall sports betting handle, Illinois’ adjusted gross revenue (AGR) from sports betting in June saw a significant 72.9% increase year-over-year, reaching $94.6 million. This surge was partly attributed to a $9.1 million adjustment to DraftKings’ revenue for the month, although the specifics of this adjustment were not fully disclosed.

The market share dynamics within the Illinois sports betting landscape also shifted in June. FanDuel continued to dominate the market, with players wagering $280.5 million through the platform and generating $42.9 million in revenue, reflecting a strong 15.3% hold.

In contrast, DraftKings, despite having a higher handle of $325.1 million, recorded a lower revenue of $39.4 million, even with the adjustment. Without the adjustment, DraftKings’ revenue would have been $28.5 million, indicating an 8.8% hold.

While FanDuel and DraftKings continued to dominate the Illinois sports betting market, other operators also made their presence felt in June. Rush Street Interactive’s BetRivers, the hometown favorite, recorded a respectable $5.8 million in revenue.

ESPN Bet, the newcomer to the Illinois market, followed closely with $3.8 million in AGR, showcasing its ability to attract bettors with its strong brand recognition and innovative offerings. BetMGM and Fanatics also made their mark, recording $3.7 million and $3.6 million in AGR, respectively, demonstrating the growing competitiveness and diversification of the Illinois sports betting landscape.

The decline in the Illinois sports betting handle in June coincides with the implementation of the state’s new progressive tax rate, which took effect on July 1. Under this controversial system, market leaders now face a 40% tax rate on revenue exceeding $200 million, making it the second-highest tax rate in the U.S. after New York’s 51% gross gaming revenue tax.

This significant increase in the tax burden has prompted a response from industry players, with DraftKings announcing that it would introduce a surcharge on winnings in high-tax states, including Illinois. This move highlights the potential challenges that operators may face in maintaining profitability and competitiveness in the new regulatory environment.