This year, BetMGM became the 7th sportsbook to debut its services in the Illinois sports betting market. BetMGM started accepting bets from punters in Illinois this March, just in time for the eradication of in-person registration. The launch of BetMGM into the state marked a significant milestone for BetMGM, which has now become one of the fastest-growing sportsbooks in the country.
BetMGM, which is owned by MGM Resorts and Entain, is currently available in 22 markets with plans to expand in even more states this year. Indeed, BetMGM is among the top 3 sportsbooks boasting a majority betting share in the online sports betting market.
BetMGM could not have joined the Illinois sports market at a better time.
The wagering volume in the state for January 2020 set a new record based on figures that were shared by the state’s Gaming board recently. In January, sports bettors in the state placed $303 million in wagers, which was a sufficient amount to push the state’s lifetime sports wagering handle to a very impressive $3.1 billion.
In January, Illinois generated $867 million in wagers, which was an increase of close to 10% compared to December’s $789 million. The revenue generated in January 2022 was also close to 50% higher than the amount that was produced last year in the same period. In January 2021, the state only managed to generate $581 million.
The last record that Illinois set in the monthly handle was set in October 2021. In October last year, the state recorded a new all-time high revenue of $803 million. However, this number has since been beaten by January 2022’s record of $867 million. In general, the profit acquired from sports betting was registered at $66 million, an increase of 96.6% from December’s 33.7 million. This was also a drastic improvement compared to 2021 when the state produced $47 million.
As a result of the revenue growth, Illinois received $10.7 million in sports betting taxes in January. The amount produced was an increase of a whopping 96.9% compared to December 2021. In December last year, the state generated sports betting taxes worth $5.4 million. This January, Illinois also celebrated having the 4th biggest handle in any state.
New York, where BetMGM also recently launched, led the states with a handle of $1.69 billion. The Empire State was trailed by New Jersey, which was the first state to allow mobile sports betting after the Supreme Court gave the green light back in 2018. Now that New York has legalized its market, New Jersey has taken the second position in the revenue generation table.
In January, punters in New Jersey placed $1.349 billion in wagers while Nevada came in at 3rd place with $1.109 billion. With Illinois in fourth place, Pennsylvania occupied the fifth position after they managed to generate an impressive $793.7 million in the monthly handle. At present, BetMGM operates in the top 5 states in the revenue generation table.
Plus, with remote registration back in the works, BetMGM should have an easier go at registering new customers than all the other brands did at their launch. For almost 2 years now, Illinois has had an in-person requirement for all punters. This means that if someone wanted to place a wager online 2 years ago, they had to avail themselves of a brick and mortar sportsbook in order to register for their online account.
Fortunately, however, this in-person requirement has since been lifted by the state. In December last year, Gov. J.B. Pritzker signed a bill titled HB 3136 into law thus effectively turning Illinois into one of the largest sports wagering markets in the country.
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Who Is BetMGM Competing Against in Illinois?
According to PlayIllinois, which is responsible for tracking the performance of regulated sports betting in iGaming, the state has been growing from strength to strength since the market was legalized. Sportsbooks in the state have been operating at a blistering rate over the last year or so, which has definitely helped to heighten the competition in the state.
As unyielding as the growth has been, it is still very important to keep in mind that the sports betting market in Illinois is still relatively immature compared to some of the more established markets. Many of the restraints that were preventing growth, including the in-person requirement, have since been eradicated, which has placed the market in a great position for growth.
When it comes to operators, BetMGM’s biggest threat appears to be DraftKings and its ally Casino Queen. DraftKings has consistently been performing at the top of the revenue table since it launched in the market. As such, DraftKings is a brand that BetMGM will definitely want to keep an eye on as it attempts to infiltrate the market. FanDuel will also be another brand to watch.
FanDuel has proven that it is capable of yielding some of the state’s highest gross revenue results. Every once in a while, FanDuel also overtakes DraftKings to lead the revenue table. The relative lack of competition for 2 of the country’s largest and most successful sports betting operators has been a boon for both FaDuel and DraftKings. However, BetMGM is looking to change all that.
Some other brands that BetMGM has to contend with include PointsBet, Caesars, BetRivers, Barstool, as well as Rivers casino sportsbook. Because the BetMGM brand is already well established in the market, BetMGM should not face too much difficulty solidifying its presence in the mushrooming market.
Final Thoughts
Despite regulatory limitations such as in-person registration which was placed on operators in the state at the advent of the market, sportsbooks in Illinois have still managed to perform in an exemplary fashion. Since the market debuted, sportsbooks in the state have managed o triple the wagering volume year after year.
Now that these restraints have been eradicated, the Illinois sports betting market could easily surpass the Garden State and Nevada to become a top contender. The future of sports betting in Illinois has therefore never been brighter and BetMGM now has the opportunity to take advantage of everything that this burgeoning market has to offer.
