Sports Betting Revenue in Illinois Sees Year-on-Year Growth Amid New Tax Regulations
In a remarkable turn of events, sports betting revenue in Illinois experienced a notable year-on-year increase in August, despite the challenges posed by recent tax law changes in the state. The latest data indicates that the industry remains resilient, with total adjusted gross revenue reaching $59.2 million, marking a 26.2% uptick from the same period last year. However, revenue was down 17.0% compared to July’s performance, reflecting seasonal fluctuations in major sports events.
Monthly Handle Shows Significant Growth
According to the figures released by the Illinois Gaming Board (IGB), the total handle—the amount wagered by sports bettors—soared to $877.8 million in August. This number represents a 29.8% increase from August 2022 and a 13.5% rise from July of this year. Such substantial growth in handle underscores the ongoing appeal of sports betting in Illinois, even during a typically quieter month.
August is traditionally recognized as one of the slower months for sports betting, primarily due to fewer major league events. Nevertheless, this year was buoyed by the international spotlight of the Olympic Games held in Paris and the anticipation surrounding the start of college football and NFL preseason games. Bettors in Illinois placed approximately $852.9 million online and an additional $24.9 million at retail sportsbooks during this busy month.
DraftKings Takes the Lead
A standout performer in the Illinois sports betting landscape has been DraftKings, which recently surpassed its chief competitor, FanDuel, to claim the top position in August. Partnered with Casino Queen, DraftKings reported an impressive adjusted revenue of $22.7 million, derived from a handle of $334.7 million, resulting in a hold of 6.78%.
FanDuel, which held the top spot in July, came in a close second with $21.7 million in revenue from a handle of $267.3 million, leading to a higher hold percentage of 7.86%. FanDuel operates in partnership with Fairmount Park, showcasing its strong brand loyalty among bettors.
The third position was secured by BetRivers, which operates in partnership with Midwest Gaming & Entertainment. BetRivers reported $4.7 million in revenue from a $68.5 million handle for a hold of 6.86%, continuing its consistent performance in the market.
Tax Implications and Revenue Repercussions
August marked the second month of the new tax regulations impacting Illinois’ sports betting market. Previously, sports betting operators were subject to a flat 15% adjusted gross revenue tax rate. This has now been replaced by a sliding scale that ranges from 20% to 40% depending on the handle. Consequently, the state collected $13.6 million in tax revenue from sports betting activities during this month, reflecting the state’s efforts to balance revenue generation with market competitiveness.
The new tax structure has added a layer of complexity for operators, yet revenues have still managed to grow, highlighting the market’s robust nature. As operators adjust their strategies to mitigate the impact of the tax increase, the continued year-on-year revenue growth signals strong engagement from bettors in the state.
Conclusion: A Bright Future for Illinois Sports Betting
Overall, the sports betting scene in Illinois is thriving, marked by impressive growth in both revenue and handle. Despite the implementation of stricter tax regulations, the demand for sports wagering remains strong, demonstrating a resilient and ever-evolving market. As the state approaches the fall season—with major sports leagues ramping up activity—a real opportunity exists for operators to capture both new and returning bettors, ensuring a vibrant future for sports betting in Illinois. The combination of innovative offerings, strategic partnerships, and an eager betting public sets the stage for continued success in the months ahead.
