Illinois’ start to the year could be a key indication of the significant growth to come, say analysts, but the state will need a wave of new digital launches to help raise the market’s ceiling.
The Prairie State became the fourth in the US to take in more than $500m in sports bets in a single month during January, surpassing the milestone despite retail shutdowns remaining in place for much of the month.
Operators brought in $581.6m in Illinois during the period, 98.9 per cent of which came from digital channels, with the figure representing an increase of 18.3 per cent from $491.7m in December.
January’s bets pushed the region past $2bn in lifetime handle, as well as generating a record $49.4m in operator revenue, up 106.8 per cent from $23.9m month-on-month. This yielded $7.2m in taxes for the state.
“No state has come close to reaching $500m in handle in such a short time frame after launching, and to reach that mark with just five online operators and retail casinos closed for much of January is even more impressive,” said Jessica Welman, analyst for PlayIllinois.com.
“Multiple factors had to come together to make that happen. The next step for the market is to get more operators online, which will help expand the pool of bettors.”
January is just the opening month in a year that could bring in more than $6bn in wagers and $450m in operator revenue, according to PlayIllinois projections, however, that assumes continued maturity, including the addition of new operators.
To that end, Illinois will get a boost with the addition of Penn National‘s Barstool-branded app, which is scheduled to launch on Friday.
“Seeing an impactful operator such as Barstool launch is a reminder that Illinois still has so much more room to grow,” stated Joe Boozell, analyst for PlayIllinois.com.
“A few uncertainties could slow the market, including the potential return of in-person registration. But January’s results are more evidence that 2021 will almost certainly mark a sizable leap forward for the state’s sports betting market.”
DraftKings/Casino Queen led the market via a 42 per cent share with its $244.2m combined handle in January, which was up from $195.4m in December. That included $243.5m in online bets.
“Having retail sportsbooks reopen was an important step for the state industry, even if sportsbooks weren’t as busy as they would’ve been during an ordinary year,” Boozell added.
“With the retail market back in business, and the roster of online sportsbook operators growing, the coming months should offer a more trustworthy gauge of where Illinois is as a market.”