Illinois sports betting handle falls below $1 billion in June, ending nine-month streak

Industry

Illinois’ sports betting handle for June fell below the $1 billion mark for the first time in nine months, reaching $848.1 million, according to the Illinois Gaming Board. Despite the decline, the handle was still up 27.4% compared to the same month last year, reflecting continued growth in the state’s sports betting market.

The June handle marked a 16.9% drop from the $1.02 billion wagered in May 2024, the last month before Illinois’ new progressive tax rate took effect. Of the total bets placed in June, $823.7 million was wagered online, while $24.4 million was bet in person at retail locations.

Bets on professional sports accounted for the majority of the handle, with $839.6 million in wagers, including $815.5 million online. College sports attracted $7.2 million in bets, while motor racing saw $1.3 million in wagers.

Illinois’ adjusted gross revenue (AGR) from sports betting in June reached $94.6 million, a significant 72.9% increase year-on-year. This surge was partly due to a $9.1 million adjustment to DraftKings’ revenue for the month, although the details of this adjustment were not fully disclosed.

The overall hold for June stood at 11.2%, with online betting contributing $92.5 million to the total AGR and retail betting accounting for $2.1 million.

Despite DraftKings’ revenue adjustment, FanDuel continued to dominate the Illinois sports betting market. Players wagered $280.5 million through FanDuel, generating $42.9 million in revenue with a strong 15.3% hold.

In contrast, DraftKings’ handle was higher at $325.1 million, but its revenue, even with the adjustment, was lower at $39.4 million. Without the adjustment, DraftKings’ revenue would have been $28.5 million, reflecting an 8.8% hold.

Rush Street Interactive’s BetRivers performed well in its home state, recording $5.8 million in revenue. ESPN Bet followed with $3.8 million, while BetMGM and Fanatics recorded $3.7 million and $3.6 million in AGR, respectively.

June marked the end of Illinois’ fiscal year, with the state’s 15% AGR tax rate generating $13.8 million in revenue for the month. However, starting July 1, this tax is replaced by a controversial progressive tax rate. Under the new system, market leaders now face a 40% tax rate on revenue exceeding $200 million, making it the second-highest tax rate in the U.S. after New York’s 51% gross gaming revenue tax.

In response to the higher tax burden, DraftKings announced it would introduce a surcharge on winnings in high-tax states, including Illinois.

Products You May Like

Articles You May Like

Get Ready for Third-Ever APT Phu Quoc Festival This November
Update to Renovations at the Rio Las Vegas
NIGC Compliance Officer Jo’Elle Thompson named to ELG “40 Under 40” Class of 2025
Playtech Reports Strong H1 2024 Results as U.S. Expansion Fuels Growth
‘A target on their back’: college athletes face wave of abuse amid gambling boom

Leave a Reply

Your email address will not be published. Required fields are marked *