The sports betting industry in Illinois continues to set milestones, reaching unprecedented heights as far as handle and revenue are concerned. The state has emerged as a powerhouse in the sports betting realm, captivating enthusiasts and solidifying the state’s position as a leading market in the country
Boasting a series of record-breaking figures and remarkable growth, Illinois showcases its prowess and potential within the thriving sports betting landscape. Despite facing fluctuations and other challenges, the market continues to flourish, further cementing its status as one of the most profitable gambling markets.
The gambling market kicked the year off on a high note, surpassing $20 billion in lifetime sports betting handle this February. Fast forward to April 2023 and the combined lifetime handle in the state has now exceeded an impressive $22.5 billion. This milestone is a testament to the continued popularity of sports betting among residents of Illinois, as well as the favorable regulatory environment that the state has created.
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A closer look at the Performance
In March 2023, the state recorded an astounding handle of approximately $1.07 billion, breaking the state’s previous record for the highest handle in a single month. March’s astounding handle marked the 5th time in the last 6 months that the state surpassed the $1 billion mark, showcasing the sustained growth of sports betting in the state.
This handle figure marked a substantial 22.5% growth compared to February and a remarkable increase of 10.4% year on year. Alongside this record-breaking handle, Illinois Sportsbooks also generated $107.5 million in revenue this March, surpassing the $100 million mark for the first time in history.
The revenue figure represented a considerable increase of 69.7% compared to February and exceeded the last record that had been set in October 2022, at $96.9 million. This surge in revenue highlights the profitability of Illinois’ gambling market. Some of the state’s top performers in March included FanDuel Sportsbook at Fairmount Park, as well as DraftKings at Casino Queen.
Both FanDuel Sportsbook and DraftKings generated more than triple the revenue of the next casino in the revenue ranking, Rivers Des Plaines. Fairmount Park secured a handle of $372.5 million and revenue worth $431 million while DraftKings recorded a handle of $334 million and revenue of $31 million.
In March 2023, several casinos witnessed considerable month-on-month handle growth including Grand Victoria Casino Elgin’s Caesars Sportsbook. The Grand Victoria experienced an increase of 45% in handle thus reaching $110 million. Hollywood Aurora’s Barstool Sportsbook also saw impressive growth in the handle of 50.2%.
The performance in April
Following a record-breaking performance in March, the state’s sports betting market experienced a predictable decline in April. However, despite the expected dip, the numbers remained strong, considering the various factors at play in April. Some of the factors that led to the decline in March include the absence of NFL games to bet on.
Additionally, the lack of Chicago teams in the NHL and NFL playoffs also caused a decline in handle and revenue. Usually, the success and popularity of local teams often contribute greatly to the overall gambling activity and revenue generated. Chicago, which is known as one of the most passionate sports cities in the country, boasts a large and devoted fan base that actively takes pride in and supports its teams.
When teams from Chicago make deep playoff runs, like the Blackhawks in the NHL or the Bears in the NFL, it generated heightened excitement and increases the number of bets made by local fans. This, in turn, causes a surge in handle and revenue of sportsbook operators in Illinois.
Conversely, when local teams fail to participate in the playoffs, it can result in a decline in betting interest and subsequently impact the handle and revenue, as it did in April. Fans are generally less motivated to place wagers on teams that they do not have a strong emotional connection to and the overall enthusiasm and engagement in betting tends to diminish during such instances.
Despite the notable absence of hometown teams, gamblers in the state still showed up and showed out. According to data shared by the Illinois Gaming Board, sports betting sites in the state recorded combined wagers of just under $900 million in April, representing a decrease of 16% from the record total of more than $1.072 billion in March.
Despite this glaring decline, April’s performance still demonstrated an increase of 7% compared to more than $839 million that was gambled in April last year. The good news is that the state maintained its position as the 2nd largest sports betting market in the country in April 2023.
Illinois was ranked second in total bets, revenue, and taxes. As far as the total handle is concerned, New York claimed the top spot boasting more than $1.5 billion. New York was followed by Illinois, boasting approximately $900 million in total bets, revenue, and taxes. New Jersey, on the other hand, secured the 3rd position with a total handle of almost $834 million.
One notable development that was recorded in April is that Illinois successfully surpassed Pennsylvania to secure 2nd place as far as taxes collected from sports betting are concerned. According to records, Illinois collected more than $14.4 million in sports betting taxes while its biggest competitor New York topped the list with almost $71 million.
Pennsylvania, alternatively fell to 3rd place with taxes of more than $13 million in March.
It should be noted that New York has a much higher tax rate of 50.9% compared to Pennsylvania’s 25.7%. sportsbooks in Illinois, alternatively, were taxed at a rate of 17.7% this April.
Despite the declined performance in April, Illinois and New York remain the only 2 states showing growth in sports betting in 2023. New Jersey, which competes closely with Illinois has also not shown signs of cooling down since sports betting was legalized in the state in 2018.
Final Thoughts
As the year progresses and comes close to an end, experts predict that Illinois will maintain its strong position as the second most profitable sports betting market in the nation. Despite the slump this April, the state still ranks second as far as total wagers, revenue, and taxes are concerned with promising growth potential.
