In April 2023, the sports betting landscape in Illinois witnessed a notable shift, with the state experiencing a 16% decrease in the total handle compared to the previous month, though showing a promising year-over-year increase of 7%.
Sports Betting in Illinois
1.1. Handle and Revenue Trends
Illinois sportsbooks took in $898.6 million in bets in April, marking a 16% decrease from the record-breaking $1.07 billion handle recorded in March. Despite this drop, the state still demonstrated a robust 7% year-over-year increase when compared to the $839 million wagered in April 2022. This marked only the second time in seven months that Illinois failed to reach the $1 billion mark.
The Illinois Gaming Board reported that the state’s sportsbooks generated adjusted gross revenue of $89.5 million in April. While this figure represented a 7.8% decrease on a monthly basis, it showed a significant growth of nearly 30% when compared to the same period last year.
1.2. Market Leaders
FanDuel maintained its leadership position in the Illinois sports betting market, securing $310.4 million in wagers and $38.9 million in revenue. This performance only saw a marginal 3% decrease from the preceding month. DraftKings ranked second with a handle of $278.8 million and revenue of just under $25 million. Other significant players included Caesars with $3.9 million in revenue on a handle of $75.2 million, and PointsBet with $5.4 million in revenue on wagers of $47.4 million.
1.3. Wager Breakdown
Parlay wagering accounted for 27.5% of the total handle, followed by basketball with $240.3 million in wagers and baseball with a betting handle of $163.4 million. This diversification in wager types demonstrates the growing popularity of sports betting in Illinois.
1.4. Taxation and Regional Allocation
The state collected $13.4 million in taxes from the sports betting sector, with a portion going to Cook County, which receives a 2% tax rate on adjusted gross wagering receipts for bets made within Chicago.
Casino Revenue in Illinois (May 2023)
2.1. Overview
In May 2023, Illinois casinos generated a total adjusted gross revenue (AGR) of $122 million. This figure represents a 4.7% decrease from April 2023’s AGR of $128 million but shows a positive year-over-year increase of 4.7% compared to May 2022’s AGR of $116.57 million.
2.2. Casino Performance
Among the various casinos in the state, Casino in Des Plaines emerged as the top performer, generating $46.64 million in revenue. Other notable casinos included Grand Victoria Casino with $12 million, Harrah’s Joliet Casino & Hotel with $10.36 million, Hollywood Casino Aurora with $7.83 million, Hollywood Casino Joliet with $7.31 million, and DraftKings at Casino Queen with $6.82 million in revenue.
2.3. Taxation and Local Allocation
The state collected over $23.91 million in taxes from the casino sector, and the local share amounted to $6.97 million. These taxes play a vital role in supporting local communities and funding various public initiatives.
3. Key Insights and Implications
The sports betting market in Illinois displayed resilience, with a significant year-over-year growth of 7%, despite the monthly decrease in the handle. This suggests a sustained interest in sports betting among Illinois residents.
FanDuel and DraftKings continued to dominate the sports betting landscape, showcasing their strong market presence and competitiveness.
Diversification in wager types, with parlay wagering, basketball, and baseball gaining prominence, indicates the evolving preferences of bettors in Illinois.
The casino sector also experienced growth on a year-over-year basis, which can be seen as a positive sign for the state’s gaming industry.
The local tax revenue collected from both sports betting and casino operations is crucial for the economic well-being of various communities across Illinois.
While Illinois witnessed a temporary dip in sports betting handle in April, the overall trend remains promising, with a healthy year-over-year increase. The state’s casino sector also continues to contribute positively to its economy. These insights provide a comprehensive view of the gaming landscape in Illinois, highlighting the factors contributing to the industry’s growth and resilience.