Sports betting in Illinois continues its upward trajectory, with September 2023 handle reaching $1.31 billion. The Prairie State now stands as the second-largest sports betting market in the United States, posting a 21.5% year-over-year increase in wagering activity.
Players generated $136.4 million in adjusted gross revenue for operators during September, marking a 58.6% jump from the same period in 2022. State coffers benefited significantly from updated tax regulations, collecting $37.3 million in tax revenue – a 168.3% increase from the previous year.
The Illinois sports betting landscape shows strong momentum across key metrics: operator market share, tax revenue distribution, and overall market growth. These numbers paint a clear picture of the state’s position among top U.S. sports gambling jurisdictions.
21+ and present in IL. Gambling Problem? Call 1-800-GAMBLER.
Illinois Sports Betting Market Overview
Illinois sports betting handle reached $14 billion in 2024, marking a 20.7% jump from 2023. Sportsbooks maintained an 8.6% hold rate throughout the year, generating $1.2 billion in revenue.
Monthly Performance Highlights
November 2024 set records with $154.6 million in operator revenue from $1.53 billion in wagers. December followed with $105.7 million revenue on $1.49 billion handle, showing a 31.6% month-over-month revenue decline during football season.
Market Growth Factors
The state’s new progressive tax structure, launched July 2024, ranges from 20% to 40% based on revenue levels. Mobile betting platforms and steady marketing efforts helped drive market expansion.
Digital vs Retail Betting
Mobile apps dominate sports wagering in Illinois. December numbers tell the story:
- Online platforms: $1.45 billion in bets
- Retail sportsbooks: $34.9 million in bets
Online betting makes up roughly 95% of all wagers placed.
Operator Performance
DraftKings topped December’s handle at $508.2 million, despite a 42.6% revenue drop from November. FanDuel posted $500 million in bets with an 8.3% hold rate, earning $41.7 million. Fanatics Sportsbook claimed third place with $105.5 million handle.
Betting Categories
Professional sports drew $1.12 billion in wagers. Other segments included:
- College sports: $177.1 million
- Motor racing: $753,685
- Other sports: $5.3 million
Regulatory Updates
The Illinois Gaming Board tightened advertising rules, matching Massachusetts and Ohio restrictions on campus advertising and promotional language. Sports betting taxes reached $263.8 million in 2024, up 75% from $150.3 million in 2023.
21+ and present in IL. Gambling Problem? Call 1-800-GAMBLER.
Top Performing Operators and Market Share
FanDuel and DraftKings hold 65% of Illinois sports betting market share. Both operators built their presence through daily fantasy sports before expanding into sports wagering.
FanDuel’s Market Position
FanDuel leads Illinois sports betting through partnerships with Chicago Bulls and Chicago Blackhawks. The operator claims 43% of nationwide online sports gaming revenue. Recent numbers show:
- Handle: $404.4 million
- Adjusted gross revenue: $53.7 million
- Hold rate: 13.27%
DraftKings Performance
DraftKings teams with Casino Queen for Illinois operations, posting:
- Handle: $501.5 million
- Revenue: $47.7 million
The Chicago Cubs partnership strengthens DraftKings’ local presence. New player promotions and odds boosts mark their customer acquisition strategy.
Market Competition
Fanatics Sportsbook launched April 2024, quickly securing third place with:
- Handle: $99.3 million
- Revenue: $10.6 million
- Hold rate: 10.67%
The ‘FanCash’ loyalty program drives customer retention.
Regulatory Impact
Illinois’ progressive tax structure now spans 20% to 40%. Major sportsbooks signal potential winning bet surcharges in high-tax states. FanDuel and DraftKings maintain leadership through established products and player bases.
The Gaming Board’s new advertising rules limit campus marketing and promotional language. These guidelines balance market growth with consumer protection.
21+ and present in IL. Gambling Problem? Call 1-800-GAMBLER.
Tax Revenue Generation and Distribution
Illinois sports betting tax structure reshapes revenue landscape for fiscal year 2025. The tiered system bases rates on adjusted gross revenue (AGR) thresholds.
Progressive Tax Structure
Tax rates follow five tiers:
| Revenue Level | Tax Rate |
|---|---|
| Under $30M | 20% |
| $30M-$50M | 25% |
| $50M-$100M | 30% |
| $100M-$200M | 35% |
| Over $200M | 40% |
Only New York’s 51% rate tops Illinois’ maximum tax rate.
Mobile and retail sportsbook revenues receive separate tax treatment. Operators running both channels pay distinct taxes for each segment under the sliding scale.
Revenue Distribution
Tax money flows two ways:
- State General Revenue Fund: 58%
- Capital Projects Fund: 42%
FY 2024 gaming tax collection reached $1.70 billion:
- State taxes: $1.46 billion
- Local taxes: $269.98 million
The Illinois Gaming Law Enforcement Fund splits proceeds:
- Two-thirds: Revenue Department, State Police, Attorney General
- One-third: Local law enforcement based on license distribution
State projections show $200 million additional tax revenue for FY 2025. The Commission on Government Forecasting and Accountability notes potential wagering decreases, offset by growth from new casino sportsbooks and online platforms.
21+ and present in IL. Gambling Problem? Call 1-800-GAMBLER.
Future Growth Projections
Illinois sports betting handle reached $31 billion through first four years. Market analysts expect continued expansion through 2025.
License Availability
The Gaming Board offers 26 sports betting licenses. Bet365 joined through Walker’s Bluff Casino Resort partnership, showing market appeal despite tax rates. Available licenses create room for operator expansion.
Market Challenges
Progressive tax rates between 20-40% might push operators toward lower-tax states. Problem gambling numbers raise concerns:
- 383,000 residents struggle with gambling issues
- 761,000 more at risk
Digital Betting Trends
Mobile platforms process 98.8% of all wagers. Sportsbooks upgrade software for better user experience and security. Remote registration approval supports digital growth.
Player Behavior Changes
Mobile betting accessibility shapes wagering patterns:
- Help line calls: 1,283 (2020) to 5,460 (2022)
- State commits $10 million yearly for gambling treatment
- New advertising rules limit campus promotions
The Illinois Economic Policy Institute reports betting revenue exceeds projections. Success depends on balancing growth with consumer safeguards.
21+ and present in IL. Gambling Problem? Call 1-800-GAMBLER.
Conclusion
Illinois sports betting revenue hit $1.2 billion through 2024. FanDuel and DraftKings lead market share, while Fanatics Sportsbook shows strong competitive presence.
The progressive tax structure delivers substantial funding for state programs, even as operators adjust to higher rates. Market resilience shows through steady growth and tech advances.
Mobile betting platforms handle 98.8% of wagers, supported by permanent remote registration rules. The state matches this digital expansion with $10 million yearly for problem gambling programs.
Illinois stands firm as the nation’s second-largest sports betting market. Growth prospects remain strong, though sportsbooks face tighter advertising rules and consumer protection standards. Success depends on maintaining balance between market growth and responsible gambling practices.
21+ and present in IL. Gambling Problem? Call 1-800-GAMBLER.
