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Home » News & Blog » Sports Revenue for Illinois Dips for May Handle

Sports Revenue for Illinois Dips for May Handle

February 21, 2024 William Mcmaster

A statement by the Illinois Gaming Board revealed that the May handle of sports revenue from the state of Illinois dropped by 14.2% when compared to April. The state had gaming revenue of $537.2m for May, the lowest since January when it broke the $500 million mark to join ranks with New Jersey.

The report also stated that revenues dropped by almost 17% from April, recording $36m. Sports revenue remitted $5.9m as taxes to the government, bringing the total to $53m since sports betting started last year in March. (iGB North America, 2021)

Draftkings Casino did not stay away from the top of the list for long, overtaking FanDuel Casino to reclaim its position. Draftkings recorded 34.5% growth in revenue at $166.2m, while FanDuel Sportsbooks posted 32.2% growth in revenue for Illinois as its online handle stood at $155.6 million.

illinois-flag

What Caused the Dip in Illinois Sportsbooks Revenue?

Analysts attribute this drop to the state’s policy preventing remote registration, a situation where Gov. J. B. Pritzker upheld a part of the legislation of Illinois on sports betting where residents must do an in-person registration at a registered casino to bet on sports. This led to a decrease in mobile handle, from 95.5% to 95.1%. (iGaming Business, 2021)

In their 2019 law, Illinois senators added a clause for sports betting online for a period of 18 months. The clause states that bettors must register in person at a casino. Yet, due to the surge of the COVID-19 pandemic, the Governor suspended the clause. By June 28, he suspended remote registration and renewed it on July 26. Following an outcry by Illinois bettors, he backpedaled on the order again on August 21. Since then, he had always renewed the suspension every month, until April when it wasn’t renewed.

According to Jessica Welman, an analyst, in-person registration is going to put a cap on the future growth of the sportsbook industry. The revenues for April and May show that bettors in Illinois are resilient and willing to bet on their favorite games, so the jury is still out on this prediction.

Future Prospects for Illinois Sports Betting Industry

Analysts predict that despite the challenges of in-person registration, Illinois can remain at second place among the US states in sports betting. Basketball and baseball remain favorite sports to bet on, with Illinoisans placing wagers worth $154.3m and $126.1m respectively on both sports. (Yahoo Finance, 2021)

It is expected that Illinois will drop in the rankings when fall begins if the ban on remote registration is still in place. Sportsbooks gain customers during the football season, and online registration will be required, which Illinois will be missing out on. This situation may see states like Nevada and Pennsylvania overtake Illinois.

If the Governor does not rescind the order, sportsbooks in Illinois can only begin online registration in January 2022. During the period of suspension, sportsbooks recorded thousands of new registrations done online, which can give them a good customer base to survive another period of in-person registration.

Till then, it is expected that the sports betting market will remain at a standstill position, and other states will begin to leapfrog the land of Lincoln, endangering their $500 million mark position.

Sources:

  1. Yahoo Finance, 2021
    https://finance.yahoo.com/news/illinois-sports-wagering-dips-may-165400088.html
  2. iGB North America, 2021
    https://www.igbnorthamerica.com/illinois-betting-revenue-dips-slightly-in-april-despite-retail-improvement/
  3. iGaming Business, 2021
    https://igamingbusiness.com/illinois-betting-revenue-dips-slightly-in-april-despite-retail-improvement/

Filed Under: News and Blogs Tagged With: Illinois, US Casino News, US Casinos, US Online Gambling, USA


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