The Illinois sports betting market continued its record-breaking pace in November 2023, with sportsbooks reporting a total handle of $1.3 billion for the month. The figure marked the third consecutive month Illinois surpassed its previous record for the total amount wagered, demonstrating the state’s sustained growth and popularity of legal sports betting.
According to figures released by the Illinois Gaming Board, the $1.3 billion handle in November represents a 33.6% year-over-year increase and an 18.5% monthly rise from October’s total of $1.16 billion. It was also the eighth time in 14 months since launching that Illinois bettors have wagered over $1 billion on sporting events in a single month.
Professional football remained the sport most wagered on by Illinoisans, accounting for 36% of the $1.3 billion November handle. With both the NFL and college football seasons in full swing, football wagering totaled $389.5 million for the month. However, other professional and college sports also saw significant betting activity that contributed to the record monthly revenue.
This remarkable figure not only marked the state’s highest monthly handle since legalization in 2020 but also propelled the nationwide handle for legal sports betting to surpass the monumental $300 billion mark.
On the operator side, FanDuel saw $511 million in total November handle to surpass the $470 million received by DraftKings IL in sports wagers. Both continue to lead the market in Illinois through partnerships with land-based casinos.
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Booming November Showcases Illinois in Sports Betting Dominance
November 2023 built on the momentum Illinois’ sports betting industry has gathered throughout the year. The $1.3 billion handle marked a 36% Y-o-Y increase compared to November 2022. It also represented the highest monthly total so far in 2023, surpassing October’s $1.28 billion.
Much of this growth has been fueled by the return of a full football season after disruptions in 2020 and 2021. Football betting makes up over 50% of Illinois’ handle, and it once again propelled a record month.
With college bowl season and the NFL playoffs still to come, December could see even higher wagering totals before 2023 comes to an end. The bar has been set high for Illinois sportsbooks heading into the final stretch.
Tier 1 wagers, consisting of straight bets on the outcome of individual games, made up $549 million of the November handle on professional sports alone. An additional $491.9 million was placed on Tier 2 proposition bets and futures involving multiple games or leagues.
Parlay bets continue to be crucial for Illinois sports betting operators. In November, a staggering 21.8 million parlay bets were placed, accounting for nearly 60% of all wagers made.
A parlay bet involves placing multiple wagers on different events within a single game or across various sporting events. These bets only result in a payout if all bet components are successful.
College sports remain popular at online sports betting platforms in Illinois, with $188.1 million and $107.2 million wagered on Tier 1 and Tier 2 college events, respectively. Online sportsbooks witnessed close to 4 million wagers made on college sports in Illinois during the month, while an impressive 31.5 million bets were placed on pro sports like the NFL, NBA, and NHL.
Operators Continue Revenue Growth Despite Margin Decline
In tandem with the record betting volume, Illinois operators generated $114 million in adjusted gross revenue during November. This 18% year-over-year increase marked yet another high for 2023 so far. Meanwhile, gaming revenue raked in by sportsbooks across the country is on course to beat the $1.5 billion generated by 27 states that have legalized sports betting, according to Forbes Magazine.
While the handle figure paints a rosy picture of the Illinois sports betting market, the revenue picture presents a slightly different perspective. The adjusted gross revenue’s growth did not fully match that of the handle, as operators dealt with tighter margins.
Despite the record-breaking handle, sportsbooks in the state only managed a 5.3% hold, marking the seventh-lowest hold percentage in the 43 months since legalization. This translated to $72.7 million in adjusted gross revenue (AGR), reflecting a 25% decrease from November 2022 and a concerning 35.5% drop from October’s record-setting $112.7 million AGR.
The percentage hold of 8.7% was the lowest of the year for Illinois sportsbooks. This discrepancy between handle and revenue suggests that bettors largely succeeded in their wagers, resulting in lower-than-anticipated profits for operators.
Generally, a lower hold signals outcomes that favor bettors rather than operators. November produced close game results and the underdog wins that prevented operators from maximizing revenue versus the handle influx.
These margin pressures could balance out during the football postseason if games follow more normal patterns. But for now, the rising tide of handle growth lifts all boats enough to produce higher revenues even with fluctuating hold percentages month-to-month.
Chicago Teams Drive Increased Local Engagement
In November, the Illinois market undoubtedly benefited from a rare circumstance—having all five major Chicago professional teams in action. The overlapping NBA, NHL, and NFL seasons provided no shortage of wagering opportunities on local teams.
Strong starts for the Bulls and Blackhawks likely drove their highest handle totals in years. The Bears also attracted consistent action despite a losing record. Furthermore, the sports betting launches of Wrigley Field and Guaranteed Rate Field brought even more ways to engage baseball fans.
This perfect storm of local betting interest funneled substantial wagering dollars through Illinois operators in November. The market may never align all its teams at competitive, bet-worthy levels again simultaneously. But November numbers reinforced Illinoisans’ willingness to support Chicago franchises through sports betting, even in transitional rebuilding years.
Wrapping Up
The Illinois sports betting market’s record-breaking performance in November 2023 serves as a significant milestone for both the state and the national industry. However, the contrasting handle and revenue figures highlight the complex dynamics at play. As the year draws to a close, the rapidly-growing sports-betting market shows no signs of slowing down. While December wagering may moderate without NFL games, ongoing basketball, and other winter sports should still lead to strong betting levels.
