3 Reasons Why Illinois Sports Betting Handle Plateaued In November

The Illinois Gaming Board (IGB) revealed this week that sports betting revenue numbers for November show Illinois has once again broken its monthly record for handle.

In November, Illinois saw a rise in betting activity with a total of $449.2 million in wagers, up from the $434.6 million recorded in October.

Although the handle grew, it did not experience the same significant surge as in previous months. For example, there was only an approximate $130 million increase in the handle between September and October.

This raises the question, “Why?”

Here are three potential reasons.

November has fewer sporting than October.

It is important to mention that Pennsylvania and Nevada, two of the three states with higher monthly counts than Illinois, saw a decrease in manager numbers in November.

Simply put, there were fewer betting options available in November than in October.

This year, the NBA Finals were held in October, a departure from the usual schedule because of the unique 2020 sports calendar. In contrast, the MLB Playoffs lasted the entire month, following their traditional format.

Both months saw consistent presence of NFL and college football, while the absence of MLB and NBA likely had an effect.

The start of the college basketball season was postponed until November 25th.

As mentioned earlier, the numbers in Pennsylvania and Nevada decreased in November. Conversely, states like Indiana saw a $20 million increase, similar to Illinois.

Even though the Indiana business is much more advanced than the Illinois business, it is surprising that we did not see a larger increase in activity despite having fewer activities.

Did Illinois suffer as a result of the lack of financial bets?

In November, there was a notable increase in COVID-19 cases in Illinois, prompting Governor JB Pritzker to shut down all casinos on the 20th of the month.

Even prior to that, casinos had begun reducing their operating hours and limiting capacity from 50% to 25%. With Illinois experiencing record-breaking numbers, there may have also been a rise in customer hesitancy to visit a casino in the days leading up to November 20.

Online sports betting is the primary form of gambling in Illinois, with a substantial portion of the total bets being made through a specific list.

Retail sportsbooks saw a decrease in bets from $24.8 million in October to $15.5 million in November.

On the flip side, the online handle increased by approximately $24 million monthly. If financials had seen similar growth, the total would have been approximately $26.5 million, exceeding the actual amount by $11 million.

In that case, the total control would have been approximately $460 million. As a result, while casino closures did not increase as much as anticipated for the entire handle, they did have an impact.

a dearth of fresh providers in Illinois

Illinois currently only has five online casinos, which is much lower than the number of businesses in states such as New Jersey, Nevada, Pennsylvania, and Indiana, where there are numerous online casinos.

Three more sportsbooks – Barstool, BetMGM, and Unibet – are expected to be launched in the upcoming months.

It is anticipated that these will stimulate the market, attracting potential new clients and distributing special funds, ultimately leading to increased betting activity.

One more thing …

The latest income statement shows that the top three operators have a significant advantage over their competitors.

In November, DraftKings, BetRivers, and FanDuel collectively accounted for an impressive 92% of the handle in Illinois.

While FanDuel and DraftKings are known for operating in this way, BetRivers usually does not. However, BetRivers was the second physical and online betting platform to launch in Illinois.

Even though DraftKings has become a dominant force in the market, BetRivers continues to generate substantial profits each quarter. In November alone, the company reported an impressive $133.1 million in revenue.

Surprisingly, PointsBet experienced a decrease of more than 50% in its handle, dropping to just $26.2 million in November. In contrast, DraftKings, BetRivers, FanDuel, and William Hill all saw an increase in their totals compared to October.

Currently, the $60.8 million earnings in October for PointsBet appear to be an outlier rather than a reliable indicator of future performance.

PointsBet has concentrated its efforts on the Illinois market by forming an exclusive sports betting partnership with the Chicago Bears and frequently promoting its services on the local NBC Sports affiliate.

The report will showcase the December efficiency as a standout highlight, while also noting the downturn in November.