Sports Betting In Illinois For August Offers Mixed Results

The Illinois sports betting landscape experienced a notable shift in August, with handle rising significantly while revenue saw a sharp decline compared to the previous month.

Despite August typically being a quieter month for sports events, the state’s betting handle surged, indicating strong consumer engagement. However, the decrease in revenue and hold percentage presents a complex picture for operators and regulators alike.

August’s sports betting figures in Illinois paint a nuanced picture of the industry’s health. While some metrics showed impressive growth, others revealed challenges that operators and regulators must navigate.

The total betting handle for August in Illinois reached an impressive $877.8 million, marking a substantial increase from both the previous month and the same period last year. This figure represents a 13.5% month-over-month growth and a remarkable 29.8% year-over-year surge.

The robust handle can be attributed to several factors:

Despite the significant rise in handle, revenue figures told a different story. The state reported $59.2 million in total ‘completed events’ adjusted gross revenue for August. While this amount represents a 26.2% increase compared to the previous year, it marks a 17.0% decrease from July’s figures.

This decline in revenue, juxtaposed with the increased handle, points to a lower hold percentage for operators across the state.

The state-wide hold percentage for August stood at 6.74%, a notable drop from July’s 9.22%. This decrease in hold percentage explains the revenue decline despite the higher betting volume. Operators faced challenges in maintaining their profit margins during a month typically characterized by fewer major sporting events.

The breakdown between online and retail sports betting in Illinois continues to highlight the overwhelming preference for digital platforms among bettors.

Of the total $877.8 million handle, a staggering $852.9 million was wagered through online platforms. This represents over 97% of all bets placed in the state during August, underscoring the continued dominance of mobile and online betting options.

While dwarfed by their online counterparts, retail sportsbooks still played a role in the Illinois betting landscape. Physical betting locations accounted for $24.9 million of the total handle, demonstrating that there remains a market for in-person wagering experiences.

August saw a shift in the competitive landscape among Illinois’ top sports betting operators, with DraftKings claiming the top spot from its long-time rival FanDuel.

DraftKings Takes the Lead

DraftKings, in partnership with Casino Queen, posted impressive numbers for August:

These figures were enough to secure the top position in the Illinois market for the month.

FanDuel, which had led the market in July, found itself in a close second place:

Despite a higher hold percentage, FanDuel’s lower handle resulted in slightly less revenue compared to DraftKings.

BetRivers, partnered with Midwest Gaming & Entertainment, secured the third spot in the Illinois market:

While significantly behind the top two operators, BetRivers maintained a solid presence in the state’s betting landscape.

August marked the second month under Illinois’ new tax structure for sports betting, which replaced the previous flat 15% adjusted gross revenue rate with a sliding scale ranging from 20% to 40%, depending on handle.

Despite the revenue decline, the state collected $13.6 million in tax revenue from sports betting activity during August. This figure reflects the impact of the new tax structure and demonstrates the state’s ability to generate significant income from the industry, even in months with lower operator profitability.