The main reason for this downward trend can be attributed to the lighter schedule of professional and college sports events during May. However, it still demonstrated a 7.5 percent increase compared to May 2022, with more than $764.5 million wagered.
Despite the recent decline, Illinois witnessed its best year in sports betting. The state set an all-time record in March with a $1.072 billion handle. This record marked the fifth month out of the previous six in which Illinois surpassed the $1 billion handle.
In May, Illinois sports betting revenue exceeded $91.5 million. It shows a 40 percent increase compared to May 2022 (approximately $65 million).
Even though April’s handle decreased by 16 percent compared to March, Illinois maintained its position as the second-highest state in the U.S. regarding handle and revenue for April after New York.
In terms of sports betting taxes collected, Illinois ranked third in May, with $14.3 million.New York led with tax revenues of $77.5 million, while Pennsylvania claimed the second spot with nearly $14.8 million.
New York has an effective sports betting tax rate of 50.8 percent, while Pennsylvania’s rate is 25.7 percent. In comparison, sportsbooks in Illinois were taxed at an effective rate of 15.7 percent in May.
Amid the sports betting landscape in the U.S., Illinois and New York were the only two states exhibiting growth in 2023 within the top ten sports betting jurisdictions. Meanwhile, New Jersey, which closely competes with Illinois, displayed signs of cooling off.
Illinois to Secure Second Place in Sports Betting Market
Most sports betting experts believe that Illinois will maintain a solid position as the nation’s second-best sports betting market by the year’s end.
The reason is especially due to the anticipated launch of the Circa Sportsbook in August, right before the NFL season kicks off.
For the first five months of 2023, Illinois ranks second in handle, with over $4.7 billion. New York leads with nearly $8 billion in handle.
In terms of revenue, Illinois ranks third with $432 million, trailing New York with almost $714 million and Ohio with $509 million.
For taxes, Illinois ranks third with $70.8 million, behind New York with $363 million and Pennsylvania with $76 million.
In May 2022, Illinois had a handle of over $764.5 million, revenue of over $65 million, and collected taxes exceeding $10.8 million. During the same period in 2022, Illinois ranked third in handle, second in revenue, and second in taxes.
Sports Betting to Hit Two Billion in Lifetime Revenue
When the figures for June or July are released, Illinois will surpass $2 billion in lifetime sports betting revenue. More than $23 billion has been wagered on sports in Illinois.
The state currently ranks fourth, following New Jersey ($38.2 billion), Nevada ($33 billion), and New York ($23.4 billion) in terms of lifetime handle.
Since the legalization of sports betting in Illinois in March 2020, over $303.3 million in taxes have been collected. The tax revenue goes toward the state’s Sports Wagering Fund.
Any remaining funds, after expenses, are transferred to the Capital Projects Fund. The fund will support the construction and maintenance of infrastructure in Illinois.
