Illinois Sports Betting Market Sees Revenue Surge in June

In June, Illinois‘ sports bettingmarket saw significant growth, with the total handle reaching $848.1 million, marking a 27.4% increase compared to the same month in the previous year. Despite this year-on-year growth, the handle fell below the $1 billion mark, ending a nine-month streak. The figures released by the Illinois Gaming Board highlighted that the amount wagered was down 16.9% from May 2024’s $1.02 billion, just before the state’s new progressive tax rate was set to take effect.

Online and Retail Betting Breakdown

The majority of the sports betting activity in Illinois during June was conducted online, ing for $823.7 million of the total handle. In contrast, in-person betting contributed $24.4 million. Bets placed on professional sports dominated the market, totaling $839.6 million, with $815.5 million staked online and $24.2 million at retail locations. Additionally, $7.2 million was wagered on college sports, while motor racing attracted $1.3 million in bets.

Adjusted gross revenue (AGR) from sports betting in Illinois reached $94.6 million in June, primarily due to a $9.1 million adjustment to DraftKings’ revenue. This adjustment contributed to a 72.9% increase in AGR year-on-year, resulting in an 11.2% hold for the month. Online betting was the major contributor to revenue, generating $92.5 million, while retail betting ed for $2.1 million. The online hold stood at 11.2%, while retail betting recorded an 8.6% hold.

Despite the adjustment to DraftKings’ revenue, FanDuel continued to lead the Illinois sports betting market. Players wagered $280.5 million through FanDuel, which, coupled with a strong 15.3% hold, resulted in $42.9 million in revenue. DraftKings, while having a higher handle of $325.1 million, generated $39.4 million in revenue with a 12.1% hold, even after the adjustment. Without the adjustment, DraftKings’ revenue would have been $28.5 million, reflecting an 8.8% hold.

Rush Street Interactive’s BetRivers maintained a strong performance in its home state, generating $5.8 million in revenue. ESPN Bet followed with $3.8 million, closely trailed by BetMGM at $3.7 million, and Fanatics at $3.6 million in AGR.

New Progressive Tax Rate Implementation

June marked the end of Illinois’ fiscal year, after which the state implemented a highly controversial progressive tax rate on July 1. The previous 15% AGR tax, which brought in $13.8 million in June, was replaced by this new sliding scale tax. The new tax rate is designed to levy operations based on their revenue, with market leaders now facing a 40% tax on revenue exceeding $200 million. This rate is the second highest in the U.S., following New York’s 51% GGR tax.

In response to the new tax structure, Vermont. Despite this surcharge, DraftKings has pledged not to reduce its market presence or acquisition spending in these markets.

Illinois’ sports betting market demonstrated substantial year-over-year growth in June, setting a monthly revenue record. Licensed sportsbooks in the state generated $95 million in AGR, a 73% increase compared to June of the previous year. The state and local governments collected $14.2 million in sports betting taxes for the month. Since the inception of legalized sports betting in Illinois, licensed sportsbooks have generated over $3 billion in revenue.

The introduction of the new tax rates is expected to further impact the market dynamics, particularly for operators like DraftKings, which has already announced measures to counterbalance the increased tax burden. As Illinois continues to adapt to these changes, the state’s sports betting market remains one of the most significant in the country.

Source:

”Online sports betting operators in Illinois close June with $824M handle”, illinois.gov.