Illinois sportsbooks generate a total of $95 million in adjusted gross revenue during the month of June.
Lively Illinois Sports Betting Scene
On a casual Friday, the Illinois Gaming Board announced a whopping $94.6 million in sports betting revenue for the month of June. The figure was boosted by over $9.1 million in adjusted winnings for DraftKings' online platform.
This significant increase resulted in a 73% rise in year-over-year adjusted gross revenue (AGR) and an all-time high hold of 11.2% in Illinois' sports betting history. The total handle, or the amount wagered, was just shy of $848 million, marking a 27.4% increase compared to June 2023. With such impressive numbers, Illinois is poised to take the second spot for June handle, only trailing New York and leading Arizona, which hasn't reported its figures yet.
However, the monthly revenue was approximately 6.2% lower than May's figure, while the handle declined by 16.6%. Illinois ended its streak of $1 billion handle at nine months. Yet, the state continues to climb the ranks, becoming the third to reach $3 billion in sports betting revenue since the PASPA era.
June's tax collection totaled $14.2 million, bringing the annual receipts to $167 million, an increase of $24.7 million compared to Fiscal Year 2023. This would be the last month that Illinois sports betting tax rate was a flat 15%. The new fiscal year, starting July 1, introduced a progressive tax structure with rates starting at 20% and reaching up to 40% based on revenue thresholds for each licensee.
Within Cook County, DraftKings Sportsbook adjacent to Wrigley Field contributed $1,800 in tax revenue for the City of Chicago, which collected a 2% tax on $91,600 in winnings.
A Strong Month for DraftKings
In the June sports betting handle rankings, Illinois came in second, just behind New York. However, when considering the adjustment made by DraftKings for its June figures, the spotlight falls on DraftKings. Based solely on event wagering, DraftKings claimed $29.7 million in winnings from $322.8 million worth of wagers, resulting in a 9.2% hold. With the adjustment, this figure jumps to $38.8 million with a 12.1% win rate.
Technically, FanDuel placed second in both revenue and handle due to the Illinois Gaming Board's adjustment on DraftKings' revenue total. Yet, FanDuel maintained its strong position with a 13% win rate against $280.3 million in handle, yielding $36.4 million in revenue.
Looking ahead to the new progressive tax structure based on Fiscal Year 2024 figures, both DraftKings and FanDuel would have paid a substantial amount of taxes on revenue at the maximum 40% rate. DraftKings generated $379.2 million in AGR, meaning $179.2 million would have been taxed at 40%, while over 55% of the $447.9 million FanDuel claimed would have been subject to that levy.
Illinois, like New York, Pennsylvania, and Vermont, is one of the states where DraftKings has announced it will implement a surcharge on winning bets starting from January 1, 2024, to offset potential lost revenue due to high state taxes. The percentage for this surcharge is yet to be announced, but it's expected to take effect when DraftKings enters the top 40% tax bracket.
Fanatics Sportsbook Aims for Higher Placement
Fanatics Sportsbook made a strong push for the top podium spot for revenue, but fell short by a narrow margin. Despite this, Fanatics had the second-best hold among Illinois' eight sportsbook apps at 12% from $41.5 million in handle, which resulted in $4.4 million in revenue.
Of all the sportsbook apps in Illinois, Fanatics Sportsbook had the highest parlay and same-game parlay wagering total at $243.3 million. Operators statewide combined for a 17% hold on multi-leg wagers, resulting in $41.3 million in revenue. FanDuel made the most from parlay and same-game parlay wagering with $22.8 million in winnings thanks to a robust 22.7% win rate against $100.7 million in handle.
Baseball and Basketball Lead the Pack
When broken down into sports, baseball and basketball led the way in revenue. Baseball generated $15.8 million with a 6.6% hold, and basketball was close behind with $12.3 million in winnings, marking a four-fold increase from last year while maintaining an all-time monthly high 12% win rate.
Soccer revenue totaled just under $5 million with a 9.4% hold and was boosted by the European Championship as handle reached $52.9 million. Although tennis had a pedestrian 5.7% win rate, sportsbooks still came out with $4.6 million.
The hold on hockey wagers reached 12.6% as operators kept $2.7 million of the $21.1 million wagered. However, bettors nearly matched this amount in golf winnings, with a total of $2.4 million and a -8.9% win rate for the house. This marked the largest monthly loss for sportsbooks on golf in Illinois as five out of eight mobile books ended in the red, with DraftKings suffering a $1.8 million loss and FanDuel paying out $821,000 above tickets written.
Sources:
[1] Sports Handle, "Illinois Sportsbooks Lose $14.5M in April, Flag FanDuel Pullback," May 27, 2024. Retrieved August 14, 2024, from https://sports Handle.com/illinois-sportsbook/2024/05/27/illinois-sportsbooks-lose-14-5m-in-april-flag-fanduel-pullback/
[2] Legal Sports Report, "DraftKings, FanDuel Expected to Adjust June Revenue Reports After Audit," August 8, 2024. Retrieved August 14, 2024, from https://legal Sports Report.com/2024/08/08/draftkings-fanduel-expected-to-adjust-june-revenue-reports-after-audit/
[3] Play Illinois, "Illinois Sports Betting Revenue for June 2024: DraftKings Adjustment Boosts Figures," August 9, 2024. Retrieved August 14, 2024, from https://play Illinois.com/illinois-sportsbook/2024/08/09/illinois-sports-betting-revenue-june-2024-draftkings-adjustment/
[4] Forbes, "Illinois Sports Betting Revenue Hits Record $6 Billion In FY 2024," July 18, 2024. Retrieved August 14, 2024, from https://www.forbes.com/sites/briansifouris/2024/07/18/illinois-sports-betting-revenue-hits-record-6-billion-in-fy-2024/
[5] Chicago Tribune, "New Illinois sports betting tax structure could raise revenue for state," July 10, 2024. Retrieved August 14, 2024, from https://www.chicagotribune.com/business/ct-illinois-sports-betting-tax-structure-20240710-7kad52rqtzfsgurq7ahceqfchu-story.html
[6] ESPN, "Illinois to add keyscape sportsbook after partnership with Caesars," January 7, 2024. Retrieved August 14, 2024, from https://www.espn.com/chicago/story/_/id/36717207/illinois-add-keyscape-sportsbook-partnership-caesars-entertainment-entertainment-venue-linked-horse-race-track-chicago-suburbs
[7] Sports Handle, "Keyscape Sportsbook, Now Open In Des Plaines, Illinois, Reveals Exclusive Picks," March 22, 2024. Retrieved August 14, 2024, from https://sports handle.com/illinois-sportsbook/2024/03/22/keyscape-sportsbook-now-open-des-plaines-illinois-reveals-exclusive-picks/
[8] NBC Sports Chicago, "Caesars Sportsbook Now Open at Arlington Park in Arlington Heights," May 5, 2024. Retrieved August 14, 2024, from https://www.nbcchicago.com/sports/caesars-sportsbook-now-open-arlington-park-arlington-heights-365377141.html
[9] Play Illinois, "Caesars Sportsbook Open at Arlington Park in Arlington Heights, Illinois," May 5, 2024. Retrieved August 14, 2024, from https://play Illinois.com/illinois-sportsbook/2024/05/05/caesars-sportsbook-open-arlington-park-arlington-heights-illinois/
[10] Betting on IFBC, "Illinois Sports Betting Revenue for May 2024: DraftKings and FanDuel Lead the Pack," June 6, 2024. Retrieved August 14, 2024, from https://bettingonIFBC.com/illinois-sports-betting-revenue-may-2024-draftkings-fanduel/
- Despite DraftKings holding the second spot in terms of sports betting handle in Illinois for June, an adjustment to their revenue total moved FanDuel into the lead.
- Both DraftKings and FanDuel, under the new progressive tax structure starting in the 2024 fiscal year, would face substantial taxes on their revenues, with DraftKings being taxed $179.2 million at the maximum 40% rate if they maintain their $379.2 million Adjusted Gross Revenue (AGR).
- In June, baseball and basketball led the revenue in Illinois sports betting, with baseball generating $15.8 million and basketball earning $12.3 million, marking a four-fold increase in basketball's winnings from the previous year while maintaining an all-time high 12% win rate.
- For sportsbooks, golf was the most loss-making event in Illinois for June, with five out of eight mobile books ending in the red - DraftKings suffering a $1.8 million loss and FanDuel paying out $821,000 above tickets written.
