Illinois' sports betting revenue falls to $679 million in February
In the world of online sports betting, February saw a significant shift in the Illinois market. Operators collectively earned over $13.4 million from parlays, with FanDuel accounting for more than half that total with $7 million, boasting a 10.8% win rate. However, Caesars Sportsbook struggled to find traction, posting losses in back-to-back months.
The overall online win rate for February was 5.2%, a drop of more than two full percentage points compared to January. This decline was not unique to Caesars, as the house also fared poorly in golf, with a 13.6% win rate, claiming nearly $1.2 million from $8.8 million wagered.
The reasons behind Caesars' struggles are multifaceted. Firstly, its app design and user experience are less polished compared to competitors like FanDuel or BetMGM. This lack of flashy design features may impact user engagement and retention.
Secondly, Caesars may lack some of the innovative features found in competitors, such as the ability to edit bets, which can appeal to sophisticated bettors. This could result in bettors gravitating towards sportsbooks with more flexible and user-friendly features.
Thirdly, Illinois bettors could be more skilled or selective, lowering Caesars' effective hold. Despite achieving a record high 8.9% hold for a quarter nationally, Illinois-specific hold and win rate might be lower due to competitive market dynamics or bettor habits.
Finally, the Illinois market is highly competitive, with several strong sportsbook brands vying for market share. This includes casino partners like Harrah’s and Par-a-Dice, creating a challenging environment for Caesars to capture and sustain high handle and win rates.
Despite these challenges, other operators thrived in February. DraftKings experienced a 26.7% decrease in handle, allowing FanDuel to claim the top spot in both handle and revenue for the month. BetRivers had the highest win rate among mobile operators, earning close to $7.3 million in revenue from $106.8 million wagered.
The Illinois market continues to grow, with the state collecting over $5.3 million in taxes for February 2022. Illinois, New Jersey, Nevada, and Pennsylvania are the only states to surpass $10 billion in all-time handle in the post-PASPA era.
In addition to traditional sports wagering, some operators like Hollywood Aurora used registration promotions to drive wagers on live college sporting events. The overall hold for February was 5.2%, a significant drop from January, but still generating substantial revenue for the state.
As the Illinois sports betting market continues to evolve, it will be interesting to see how Caesars and other operators adapt to the challenges and opportunities presented by the competitive landscape.
- Caesars Sportsbook's loss in two consecutive months, despite the overall win rate for February being 5.2%, could be related to its less polished app design and user experience, lacking innovative features compared to competitors, or Illinois bettors being more skilled or selective, contributing to a lower effective hold.
- The Illinois sports betting market is highly competitive, with several strong sportsbook brands like FanDuel, DraftKings, and BetRivers, alongside casino partners like Harrah’s and Par-a-Dice, creating a challenging environment for Caesars to capture and sustain high handle and win rates.
- In addition to traditional sports wagering, some operators like Hollywood Aurora are using registration promotions to drive wagers on live college sporting events, indicating that the Illinois sports betting market continues to grow and evolve, offering a variety of opportunities for operators in the sector.
