Another Successful Month for Illinois Industry

Another Successful Month for Illinois Sportsbooks in April

By Amelia Walker Senior Content Writer Updated: 24 June 2024

Amelia Walker Senior Content Writer

Amelia Walker is a Senior Content Writer at Betting.US. She has a law degree and deep knowledge of the gambling laws in the United States. Her mission is to keep players informed about responsible gambling, while her passion for sports helps her create useful guides. Amelia has over a decade of experience in betting, which has positioned her as a trusted voice among our readers.

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It has been reported that Illinois sports betting operations recorded nearly $92 million in adjusted gross revenue and a handle of $1.1 billion in April. This is according to the latest figures released by the Illinois Gaming Board. This marks the eighth consecutive month that the state’s betting handle has exceeded $1 billion, with an impressive 22.8 percent increase in betting volume compared to the same period last year.

Despite the impressive handle, the revenue saw a 7.5 percent decrease from March’s $1.26 billion, while the win rate for operators stood at 8.3 percent. This was slightly down from last year’s, which came to nearly 10 percent. Over recent months, the state has continued to strengthen its position in the national rankings, closely challenging New Jersey for the second spot.

A Key Player in the Sports Betting Market

April also saw Illinois join the elite group of states that have handled over $35 billion in bets since the overturning of the PASPA. Officials said that this places it as a key player in the U.S. sports betting market.

In terms of tax revenue, sportsbooks contributed $13.8 million to state finances in April, bringing the total tax revenue for the year to $61.5 million. This figure is $8.9 million higher than the previous year’s total for the same period.

However, starting July 1t, a new progressive tax system will be implemented. Rates will start at 20 percent and go up to 40 percent for operators whose annual revenues exceed $200 million.

Former ESPN sportswriter, Chris Altruda, said:

Illinois will switch to a progressive tax starting with its new fiscal year July 1, with tax rates starting at 20% and reaching 40% for any operator that generates more than $200 million in revenue in a fiscal year.

This could have a big impact on big players like FanDuel and DraftKings, as they are set to move into higher tax brackets due to solid parlay revenues. FanDuel, for instance, recorded $133.1 million from parlays, placing it in the 35 percent tax bracket. DraftKings came in at $80.6 million, entering the 30 percent bracket.

Both companies are likely to hit the highest tax tier soon, given the strong preference among Illinois bettors for parlays.

Increase in Betting Volume

As the NFL preseason and college football’s Week 0 approach in August, an increase in betting volume is anticipated. This could help to accelerate the tax revenue growth. The change in tax structure is also expected to boost state revenues significantly, although projections suggest it might fall short of Governor JB Pritzker’s initial target of a $200 million increase.

In a breakdown of operator performances, FanDuel led in revenue for April, generating $43.8 million with an 11.3 percent hold from a $386.9 million handle. Data shows that $34.2 million of this came from parlays, equating to a 25.4 percent hold on these bets.

DraftKings topped the charts in terms of handle, pulling in $400.3 million and earning $27.9 million in revenue, with parlays contributing significantly to their gains.

BetRivers, which holds the license for Rivers Casino in Des Plaines, also showed strong performance, benefiting from a recent legislative amendment that differentiates tax calculations between mobile and physical betting venues. This adjustment may push BetRivers into a higher tax bracket as well.