Illinois Hits $1.3 Billion Sports Betting Handle For September

Illinois sportsbooks achieved impressive numbers in September 2024. The return of the NFL season ignited a surge in wagering activity for the state to new heights in terms of adjusted gross revenue and overall handle.

The Illinois Gaming Board’s latest report reveals $136.4 million in combined adjusted gross revenue from online and retail sportsbooks for September 2024. This figure surpasses the previous record of $135.2 million set in January.

Record-Breaking Revenue

The $136.4 million in adjusted gross revenue represents a year-over-year increase of 58.2% compared to September 2023. The growth can be attributed to more favourable outcomes for operators in both college and professional football games during the month.

September’s total handle, or the amount wagered by bettors, reached $1.31 billion. This marks a 21.3% increase from the same period last year and falls just short of the all-time record of $1.38 billion set in November 2023. It’s worth noting that September 2024 became the sixth month in the year to surpass the $1 billion handle threshold, indicating sustained growth and interest in sports betting across the state.

The overall hold percentage, which represents the portion of wagers retained by sportsbooks, reached 10.4% in September. This double-digit win rate is the first since June in Illinois, highlighting a particularly profitable month for operators.

July 2024 saw the implementation of a new tiered tax system for sports betting revenue in Illinois. This updated structure has had a significant impact on state revenue and operator strategies.

Tiered Tax Rates

The new system introduces a progressive tax structure with rates ranging from 20% to 40% based on adjusted gross revenue. Here’s a breakdown of the tiers:

The implementation of the new tax structure has resulted in a significant increase in tax revenue for Illinois. In September 2024, the state collected $37.3 million in taxes from sports betting operations, nearly tripling the $12.9 million collected in September 2023.

The new tax structure also benefits local communities. For instance, Cook County, which includes Chicago, received $1.3 million in tax revenue from sports betting operators in September 2024.

Despite finishing second in handle, FanDuel topped the revenue charts with $53.7 million in adjusted gross revenue. The operator’s 13.3% hold rate outperformed its competitors.

DraftKings led all operators with a $494.4 million in handle for September. While its hold rate was lower than FanDuel’s, the sheer volume of bets placed through its platform solidifies its position as a market leader.

Relatively new to the Illinois market, Fanatics Sportsbook set new records for itself in September. The operator achieved a handle of $95.4 million and adjusted revenue of $10.6 million.

Performance of Other Major Players

September 2024 marked the first full month of operations for Hard Rock Bet in Illinois. The newcomer made a strong debut, generating a $15.8 million handle and $1.5 million in revenue.