Illinois Sports Betting Handle Drops 10% in May

Illinois sports betting handle dropped 10% in May, the decline represents part of an ongoing trend affecting the state’s sports betting landscape. The May figures raised questions about market sustainability and growth projections that operators had anticipated during peak seasons. As can be seen from recent performance data, Illinois sports betting faces headwinds that extend beyond seasonal fluctuations.

Illinois Sports Betting Handle Declines to $906 Million in May

The Illinois Gaming Board reported that online and retail sportsbooks generated $1.14 billion in wagers during May 2026, representing a 10.2% decrease from the same month in 2025. This figure marked the largest year-over-year decline operators experienced in 2026, with May becoming the fourth consecutive month to register a handle decrease compared to the previous year.

Betting activity showed a sharper contraction than revenue figures suggested. Illinoisans placed 21% fewer bets compared to May 2025, though this represented an improvement over April’s 25% reduction in wager count. Despite these declines, Illinois sports betting maintained its position as the nation’s second-largest market by handle and achieved nine consecutive months exceeding $1 billion in total wagers.

Revenue metrics painted a more resilient picture. Sportsbooks reported adjusted revenue of $118.9 million, posting only a 1.7% decrease from May 2025. A solid 10.4% hold percentage helped operators maintain profitability levels, with monthly revenue remaining above $100 million since July 2025.

Tax collections exceeded prior-year levels, generating $52.5 million for the state compared to $45.2 million in May 2025. The per-wager tax alone contributed $10.4 million, while Cook County received $1.3 million from the $66.7 million operators collected from Chicago-area bettors.

What Factors Contributed to May’s Betting Slowdown?

Seasonal patterns played a primary role in May’s wagering contraction. Sports betting experiences natural cyclical variations, with handle peaking during NFL season and the Super Bowl between October and February, spiking again during March Madness, then declining through spring and summer months. Football season drives the majority of annual betting activity, and May falls squarely within the industry’s weakest period.

Pennsylvania recorded similar trends, with handle dropping 9.1% during the same month. This broader pattern suggests structural factors beyond Illinois-specific conditions. The slowdown that began during late 2025 has taken on a more systemic character across U.S. markets.

Operator strategy shifts accelerated the decline. Flutter Entertainment, parent company of FanDuel, reported that FanDuel exited 2025 with a smaller customer base than anticipated, which continued to pressure first-quarter 2026 performance as average monthly player totals declined 6% year over year. Sportsbooks moderated marketing spending as investors demanded earnings growth instead of pure customer acquisition.

Customer retention challenges intensified as promotional incentives decreased. Some bettors wagered less frequently or exhausted bankrolls more quickly as operators focused more heavily on profitability. The online gaming sector experiences churn rates around 40% in the first week after deposits, with many customers placing only one bet before departing.

How Do Industry Experts View Illinois Sports Betting Future?

Industry analysts project Illinois sports betting will remain among the nation’s largest markets despite current headwinds. Chris Grove, partner emeritus at Eilers & Krejcik Gaming, noted that the largest sportsbook markets will largely correlate with the largest states, positioning Illinois favorably for long-term growth.

State officials adopt a more cautious stance. The Commission on Government Forecasting and Accountability warned against placing too much faith in wagering growth, citing uncertainties including delayed participation levels, COVID-19’s lasting effects, and competitive pressures from neighboring gaming options. Democratic state Rep. Stephanie Kifowit emphasized that gambling revenue shouldn’t be depended upon as a stable source for state budgets.

Problem gambling concerns complicate the market outlook. Data shows 68% of adult Illinoisans reported gambling in the past year, with online sports betting experiencing significant growth. Treatment providers conducted 13,037 assessments in State Fiscal Year 2021, representing a 440% increase over the previous year. Experts observe rising addiction among young people who conduct all activities on their phones.