Illinois Finishes August as Third-Best U.S. Legal Sports Betting Jurisdiction

After a slow start, Illinois sports betting has ended the summer on a high note, with a surge in activity at top sportsbooks, betting sites, and betting apps. The Illinois Gaming Board reported increased betting activity in August, with even more growth expected in September.

Illinois’ August earnings report had mixed results. Despite an increase in overall handle, sports betting providers in the Land of Lincoln saw a significant decrease in revenues. Even with a 10.5% month-over-month increase, Illinois was surpassed by New Jersey as the second best sports betting state in the nation for the first time in six months.

In August, Illinois achieved a significant milestone by reaching a lifetime $25-billion handle mark, becoming the fourth state in the post-PASPA era to accomplish this feat. Illinois sportsbook promos played a key role in achieving this milestone, joining New Jersey, Nevada, and New York in surpassing the $25-billion mark.

Illinois August Handle comes in at $676.1 million

In August, sports betting in Illinois saw a total of $676.1 million in wagers, marking a 10.5% increase from the previous month and a nearly 20% increase from the same time last year when $564.8 million was wagered. The year-to-date handle for the state now stands at $6.7 billion.

In August, Illinois dropped to third place in the competition to become the top U.S. legal sports betting jurisdiction, after previously holding second place since January. New Jersey, which was the second-best state before Illinois joined, finished nearly $50 million ahead of Illinois in August.

Not surprisingly, Illinois sports betting apps accounted for 96% of all wagering activity in August.

In August, baseball received the highest amount of bets in Illinois, with a total handle of $206.2 million. Tennis came in second with a handle of $89.1 million.

Revenues drop thanks to a poor hold rate

Although there was a notable increase in sports betting activity in Illinois from month to month, the revenues for the state’s sports betting providers fell short of expectations.

In August, Land of Lincoln sports betting providers reported $46.9 million in adjusted gross revenue, which represents a 23.2% decrease from July’s totals but a slight 1.8% increase compared to the previous year.

The decline in profits can be attributed to a disappointing 6.9% sportsbook hold rate in August, as bettors in Illinois had a successful month against the house. This was the first time in over a year that the sportsbook win rate in Illinois fell below 7%.

Illinois sports betting apps and retail providers paid $7.04 million in taxes in August, which was $2 million less than the previous month due to a lower hold rate.

Illinois sportsbooks have now exceeded $300 million in total tax payouts with the addition of August’s totals.

Split decision in operator race

Similar to many American legal sports betting jurisdictions, the competition for the top Illinois sports betting app boiled down to DraftKings Illinois and FanDuel Illinois, both vying for the top rankings in the main reporting categories.

DraftKings maintained its position as the handle winner in both August and July, accounting for $241.3 million of the total $676.1 million handle. However, despite this strong performance, the book finished second in revenues with $15.8 million due to a disappointing 6.7% hold.

In Illinois, FanDuel ranked second in terms of handle, with $222.6 million in bets. The company generated the highest revenue due to a superior hold rate, earning $17.3 million from its August handle in FanDuel Illinois.

In August, BetRivers Illinois ranked third in the state in terms of handle, bringing in $63.3 million in bets. Caesars Illinois, PointsBet Illinois, and BetMGM Illinois also made it to the top six, with each book recording a handle of over $30 million.