FanDuel Made A Killing In Illinois In May Despite Overall Handle Dropping. How?

Though DraftKings usually tops the monthly handle among all Illinois sportsbooks, it is FanDuel Illinois that consistently generates the highest income among all operators in the state.

Despite only leading in handle once, FanDuel made the most profit among all the sportsbooks in Illinois in four out of five months in 2021.

The revenue report for May from the Illinois Gaming Board was especially revealing.

Although DraftKings had a handle figure approximately $14 million higher than FanDuel, FanDuel managed to almost triple DraftKings’ revenue, earning $20.2 million for the month.

In a statement to Play Illinois, FanDuel’s director of publicity, Kevin Hennessy, said:

“We’re extremely pleased with our progress in Illinois. Our NBA offerings and top-tier same game parlay product have significantly boosted our revenue, establishing us as the clear leader in this area. As we move into summer, customers in Illinois can look forward to more leading promotions, including bonus same game parlays.”

Below are the detailed splits of revenue 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

For the month, FanDuel had a hold percentage of 12.9%. The next highest among Illinois operators was PointsBet, with a hold percentage of 5.9%.

In May, a staggering 55.2% of all sports betting revenue in Illinois was accounted for by FanDuel.

The logical subsequent question would be: How is FanDuel accomplishing this?

Months like these usually incorporate some luck for sports betting operators. However, setting that aside, it has been demonstrated that focusing on parlay bets is an effective business strategy.

Parlay bets extremely popular at FanDuel Illinois

As previously mentioned, sportsbooks usually make a lot of money from parlay betting. In Illinois, FanDuel is the go-to platform for placing parlay bets.

In May, residents of Illinois placed parlays amounting to $110.2 million. From these bets, sportsbook operators gained a profit of $20.7 million.

To provide some context, parlays were far more profitable for the books than any individual sport, which is usually the case. Basketball betting, despite recording the highest handle of any sport in May with $154.3 million, only generated $7.1 million in revenue.

Thus, if operators find parlay bets to be the most profitable type of wager, it would be logical to focus on them. This is precisely the approach taken by FanDuel.

In May, FanDuel saw Illinoisans place bets worth $54.9 million on parlays. The sportsbook recording the second highest total was DraftKings, with $33.5 million.

DraftKings appears to be the most popular sportsbook for individual game bets due to its higher overall handle. However, when it comes to parlays, FanDuel reigns supreme.

FanDuel’s marketing and promotional strategy becomes clearer when you consider their “Same Game Parlays”. This strategy allows betting on multiple props within the same game, a feature not offered by other books. Its popularity has soared, and you’ve probably seen numerous adverts promoting it.

Even though a same-game parlay might not be as beneficial to the operator as a standard parlay, it is still a much better option than an individual spread bet.

FanDuel also has a strong NBA brand

Basketball may not generate as much revenue as parlays, but in May, it was a more profitable option for operators than baseball, another favorite spring sport among Illinois patrons.

For the month, FanDuel made up 26.6% of the basketball handle in IL, a slightly larger percentage than the 21.9% it held for baseball.

Basketball was markedly more lucrative for sportsbooks in Illinois than baseball. Sportsbooks operators in IL made a profit of $7.1 million from basketball bets, compared to the $1 million they made from baseball bets.

Just as DraftKings, FanDuel has evidently placed a high priority on the NBA. It has formed a partnership with Turner Sports and is often showcased on TNT’s NBA coverage. Charles Barkley, a renowned former player, has a unique contract with FanDuel.

Rob Perez, who is recognized as “World Wide Wob” on NBA Twitter, is currently employed by FanDuel. Additionally, FanDuel serves as the official sports betting partner of The Ringer, a producer of a vast amount of popular basketball content.

In essence, FanDuel has evidently leaned towards the NBA, and this strategy is proving successful in the world after March Madness.

Naturally, the parlays are the essential factor here. As long as they maintain their popularity at FanDuel, it should continue to generate profits in Illinois.