Illinois Betting Handle Climbs While Revenue Falls

A busy September brought a mix of growth and pressure for Illinois operators. Bettors placed more money on games, yet operators kept less of it, and tax debates in Chicago and Springfield suddenly picked up new urgency.

Good to Know

• Illinois handle hit 1.42 billion dollars, up 9 percent from last year
• Hold rate slid to 7.1 percent because bettors hit parlays at a higher rate
• Five million fewer online bets were placed than last September

Handle Climbs But Revenue Stalls As Bettors Cash In

Reports from the Illinois Gaming Board show that players wagered 1.42 billion dollars in September, the highest amount since May and the sixth time in a year that bets cleared 1.4 billion. The month did not treat operators as kindly. Revenue fell to 100.7 million dollars, a steep drop from 137.1 million dollars one year earlier.

Nearly all of the profit, about 99 million dollars, came from mobile wagers, which were down more than 15 percent year over year. Operators dealt with a 7.1 percent hold, the second-lowest of 2025. NFL upsets and parlay outcomes gave bettors a rare edge. Multi-leg wagers returned a 13 percent hold for players, their best showing since March.

FanDuel topped the state with 39.4 million dollars in revenue from a 417.9-million-dollar handle and leaned heavily on parlays, which delivered more than 25 million dollars. DraftKings posted the highest handle at 507.9 million dollars but landed only 28.7 million dollars in revenue after a 5.6 percent hold.

Fanatics Sportsbook crossed the 100-million-dollar handle line but finished with a 6 percent hold, while BetMGM and bet365 finished above 7 percent.

Illinois collected 28.7 million dollars in taxes, including 1.1 million for Cook County. The new per-wager tax created 10.6 million dollars in state revenue. That rate took effect in July and led operators to introduce surcharges or betting minimums to absorb the cost.

DraftKings paid 4 million dollars in taxes after processing more than 11.2 million bets. FanDuel hit 4.5 million dollars in taxes on nearly 11 million bets. No other operator reached 600,000 dollars in monthly tax payouts.

SBA Says New Taxes Are Shrinking Regulated Betting

The Sports Betting Alliance reacted sharply to the latest numbers, arguing that Illinois policy choices pushed bettors toward cheaper offshore and unregulated sites. The group said online wagering fell 15 percent year over year from the same month in 2024.

SBA spokesperson Maura Possley said:

“The Illinois Gaming Board data released today is astounding. While legal markets all across the country are growing, the Illinois market is shrinking thanks to the state recent tax hike.”

Illinois charges online sportsbooks 25 cents on the first 20 million wagers and 50 cents for every wager after that threshold. DraftKings and FanDuel applied 50-cent surcharges. DraftKings waived the fee on parlays worth 10 dollars or more. BetMGM and Hard Rock Bet set minimum bet amounts, while Circa Sports set a 10-dollar minimum.

Possley said:

“Illinois sports fans are fleeing the legal betting market in favor of the cheaper illegal and unregulated options – and the regulated legal market is paying the price.”

Concerns about unregulated betting were echoed in a letter signed by the state attorney general this summer. That letter warned that offshore sites expose consumers to “fraudulent schemes and highly addictive gambling without any oversight or accountability.” The Better Business Bureau has logged more than 10,000 related complaints between 2022 and 2025.

Chicago Proposes New 10.25 Percent Local Tax

Chicago mayor Brandon Johnson wants to bring in 26 million dollars through a 10.25 percent tax on wagers placed inside city limits. Operators said this could push even more bettors to offshore sites. SBA called the trend a warning for lawmakers.

Possley said:

“This data is a warning sign for Chicago, Illinois, and other state policy makers that over-taxing legal betting will have profound negative ramifications for the sustainability of the legal market and future tax revenues for state coffers.”

Illinois already runs a progressive tax system for sports betting, and operators now face one of the most expensive tax structures in the United States. In September, the per-wager tax alone produced 10.6 million dollars while mobile sportsbooks made nearly 99 million dollars in adjusted revenue.

FAQ

Why did operator revenue fall even though handle increased?

Bettors hit parlays at higher rates and early NFL outcomes lowered win percentages.

Why were fewer bets placed in September?

SBA says operator surcharges from the per-wager tax discouraged casual bettors.

Which operators dominated?

FanDuel led in revenue, while DraftKings handled the most wagers.

Why is the per-wager tax controversial?

Operators pass the cost to customers, making legal betting more expensive than offshore options.

How much did the state collect in September?

Illinois gained 28.7 million dollars in taxes, including 10.6 million dollars from the per-wager system.