Illinois Sees Seasonal Drop in Sports Betting

Illinois experienced a decline in sports betting handle in July, with total wagers amounting to $774 million.

Comparison to Previous Months

The July handle was significantly lower than June’s figures, showing the summer dip in betting activity.

This decrease is attributed to the absence of NFL and college sports during the summer months. The state witnessed consecutive months with handles below $1 billion.

Despite the overall decline, certain areas within the sports betting market demonstrated notable growth.

Basketball bets in Illinois reached $84.6 million in July, marking a 75% rise from the $48.9 million recorded in July 2022.

Revenue and Hold Percentage

The state generated $71.3 million in total sports betting revenue for July, with an overall hold of 9.2%. While this represents a 25% decline from the previous month, it is an 18% increase compared to July of the previous year.

DraftKings led in terms of betting handle, accepting $283.5 million in wagers. However, FanDuel surpassed DraftKings in revenue, earning $28.6 million due to a higher hold rate of 11%, compared to DraftKings’ 8.4%.

Introduction of Progressive Tax Rates

July marked the first month under Illinois’ new progressive tax system for sports betting operators. Replacing the previous flat tax rate of 15%, the new tiered rates start at 20% and increase based on adjusted gross revenue (AGR). This change resulted in the state collecting approximately $14.3 million in taxes—about $3.6 million more than what would have been collected under the old rate.

The new tax structure significantly affects leading sportsbooks like FanDuel and DraftKings. Both are nearing the next tax bracket, which will increase their tax rate from 20% to 25% once they surpass $30 million in AGR.