FanDuel Made A Killing In Illinois In May Despite Overall Handle Dropping. How?
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While DraftKings typically leads in monthly handle among all Illinois sportsbooks, it is FanDuel Illinois that consistently produces the highest revenue among all operators in the state.
FanDuel, despite only being the handle leader once, emerged as the most profitable sportsbook in Illinois for four out of five months in 2021.
The revenue report for May released by the Illinois Gaming Board provided significant insights.
FanDuel nearly tripled DraftKings’ revenue for the month, bringing in $20.2 million despite DraftKings having a higher handle figure by approximately $14 million.
Kevin Hennessy, the director of publicity at FanDuel, stated in an interview with Play Illinois:
We are thrilled with our success in Illinois. Our NBA options and high-quality same game parlay product have greatly increased our earnings, solidifying our position as the dominant player in this market. As we head into summer, customers in Illinois can expect even more top promotions, including bonus same game parlays.
The following breakdown shows the revenue splits for Illinois sports betting operators in May.
| Licensee | Online Brand | Total Handle | Online Handle | Retail Handle | Total Revenue | State Tax | Local Tax |
|---|---|---|---|---|---|---|---|
| Casino Queen | DraftKings | $170,109,570 | $166,227,839 | $3,881,731 | $7,210,758 | $1,065,214 | $71,669 |
| Fairmount Park | FanDuel | $156,267,145 | $155,574,427 | $692,718 | $20,168,670 | $2,888,467 | $239,888 |
| Rivers | BetRivers | $89,002,282 | $76,722,864 | $12,279,418 | $5,240,504 | $778,553 | $66,934 |
| Hollywood Aurora | Barstool | $39,649,164 | $38,201,803 | $1,447,361 | $1,472,823 | $251,825 | $16,320 |
| Hawthorne | PointsBet | $38,967,969 | $37,401,188 | $1,566,781 | $2,321,923 | $365,593 | $24,271 |
| Grand Victoria | William Hill | $9,114,351 | $8,374,915 | $739,436 | -$128,245 | $9,366 | $588 |
| Argosy | N/A | $2,672,277 | $0 | $2,672,277 | $338,081 | $52,094 | $0 |
| Hollywood Joliet | N/A | $1,169,653 | $0 | $1,169,653 | $167,282 | $23,080 | $0 |
| Par-A-Dice | FanDuel | $327,350 | $0 | $327,350 | -$236,850 | $458 | $0 |
| Total | $507,279,761 | $482,503,036 | $24,776,725 | $36,554,946 | $5,434,650 | $419,670 |
FanDuel had the highest hold percentage for the month at 12.9%, while PointsBet had the second highest hold percentage among Illinois operators at 5.9%.
FanDuel accounted for an impressive 55.2% of all sports betting revenue in Illinois in May.
The next question that naturally arises is: How is FanDuel achieving this?
During months like these, sports betting operators typically experience a stroke of luck. But aside from that, it has been proven that concentrating on parlay bets is a successful business tactic.
Parlay bets extremely popular at FanDuel Illinois
As mentioned before, sportsbooks typically earn significant profits from parlay betting. In Illinois, FanDuel is the preferred platform for placing parlay bets.
In May, Illinois residents wagered a total of $110.2 million on parlays, resulting in sportsbook operators earning a profit of $20.7 million.
Parlays proved to be much more lucrative for the books compared to individual sports, as is typically the case. In May, basketball betting had the highest handle of $154.3 million, but only generated $7.1 million in revenue.
Therefore, if operators discover that parlay bets are the most lucrative type of wager, it would make sense to concentrate on them. This is exactly what FanDuel has done.
In May, Illinois residents wagered a total of $54.9 million on parlays through FanDuel, making it the top sportsbook for this type of bet. DraftKings came in second place with $33.5 million in bets placed.
DraftKings is the go-to sportsbook for individual game bets, boasting the highest overall handle. On the other hand, when it comes to parlays, FanDuel takes the crown as the top choice.
FanDuel’s marketing and promotional strategy can be better understood when looking at their “Same Game Parlays.” This unique feature allows users to bet on multiple props within a single game, setting them apart from other betting platforms. The popularity of this feature has skyrocketed, evident in the numerous advertisements promoting it that you’ve likely come across.
While a same-game parlay may not offer the same benefits to the operator as a traditional parlay, it is still a far superior choice compared to making an individual spread bet.
FanDuel also has a strong NBA brand
While basketball may not bring in as much revenue as parlays, it was a more profitable choice for operators in May compared to baseball, which is another popular spring sport among Illinois patrons.
During the month, FanDuel accounted for 26.6% of the basketball handle in IL, slightly more than the 21.9% it represented for baseball.
Sportsbooks in Illinois made significantly more money from basketball bets, generating a profit of $7.1 million compared to the $1 million profit from baseball bets.
Similar to DraftKings, FanDuel has shown a strong focus on the NBA by partnering with Turner Sports and being featured on TNT’s NBA coverage. FanDuel has also signed a distinctive contract with former player Charles Barkley.
Rob Perez, also known as “World Wide Wob” on NBA Twitter, is currently working for FanDuel. Furthermore, FanDuel is the official sports betting partner of The Ringer, a prominent producer of popular basketball content.
Basically, it is clear that FanDuel has focused on the NBA, and this approach is paying off in the post-March Madness era.
The key factor here is the popularity of parlays. If they continue to be popular at FanDuel, profits in Illinois should remain strong.
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