Illinois Sports Betting Posts 15% Revenue Decline in February
The Illinois Gaming Board reported adjusted gross revenue of $109.20 million for February, representing a 14.7% decline from the previous year. Despite the Seattle Seahawks-New England Patriots Super Bowl providing a marquee betting event during the month, operators struggled to match February 2025 performance levels.
Handle reached $1.17 billion, posting a modest 1.5% year-over-year gain. The total marked a significant drop from January’s $1.40 billion but extended the state’s streak of surpassing $1.00 billion in monthly handle to six consecutive months. Olympic betting supplemented football wagering during February, providing additional betting opportunities beyond the Super Bowl.
The statewide hold of 9.3% fell nearly 1.8 percentage points compared to February 2025, contributing to the revenue shortfall. This marked the fifth time in six months that the hold remained below the 10% threshold. Online sports betting operators accepted 25% fewer wagers than in February 2025, continuing the downward volume trend.
Illinois collected $38.10 million in revenue-generated receipts for the month. The state’s fiscal year total reached $400.20 million in levies, running $128.90 million ahead of the previous year’s pace. FanDuel announced plans to waive its surcharge pass-through until June 19, though no other operator followed this decision.
Per-Wager Tax Continues to Impact Betting Volume
The per-wager tax implemented in July 2025 charges operators $0.25 on the first 20 million wagers and $0.50 thereafter. This structure generated $8.80 million in February, with FanDuel and DraftKings each paying over $3.50 million. The combined tax burden for these two operators dropped from $11.60 million in January.
Operators responded by passing costs directly to bettors through varying strategies:
Surcharges:
- FanDuel, DraftKings: $0.50 per wager
- Fanatics, Caesars, bet365: $0.25 per wager (bet365 on wagers under $10.00)
Minimum Bet Increases:
- BetRivers: $5.00 (from $1.00)
- BetMGM: $2.50
- Hard Rock Bet: $2.00
- theScore: $1.00
- Circa: $10.00
Illinois bettors placed 28.9 million wagers in January 2026, down from 36 million during the same period in 2025. Over four consecutive months, the state recorded 27.6 million fewer wagers compared to the previous year. This decline translated into approximately $6.90 million less tax revenue than projected.
Representative Daniel Didech filed House Bill 5143 to repeal the per-wager tax, attracting 27 additional co-sponsors. Missouri’s sports betting launch in December 2025 compounded Illinois’ challenges, though the per-bet tax remains the primary factor in declining participation[28].
DraftKings and FanDuel Lead Operator Revenue Rankings
Online operators dominated Illinois sports betting activity, capturing $1.12 billion of total handle and all but $2.50 million of gross revenue. DraftKings led mobile operators with a $420.30 million handle, followed by FanDuel’s $357.30 million. However, FanDuel produced a 13.8% hold compared to DraftKings’ 9.9% win rate, recording just $500,000 less revenue than its rival. DraftKings generated $41.70 million while FanDuel earned $41.20 million.
Fanatics Sportsbook produced its best income total yet, hauling in $14.50 million from a $109.50 million handle, securing third place among online sportsbooks. The operator recently moved its online license from Hawthorne Race Course to Argosy Casino Alton, while maintaining retail locations at the track in Cicero and off-track betting facilities in Crestwood, Prospect Heights, and Villa Park.
BetMGM ranked fourth with a $62.80 million handle, narrowly surpassing BetRivers at $61.20 million. BetRivers made more profit with $6.00 million compared to BetMGM’s $5.70 million. Caesars rounded out the top six operators with a $49.50 million handle and $3.30 million revenue. Retail sportsbooks contributed $3.60 million to the state’s total revenue.
