Despite nationwide record wagered on Super Bowl LX, Illinois sports betting appears to be trending down amid per bet fee

Super Bowl LX, a victory for the Seattle Seahawks, also proved to be a record-breaking event for sportsbooks across the nation. Americans legally wagered an estimated $1.76 billion on the game, according to the American Gaming Association. However, a contrasting trend is emerging in Illinois, where sports betting activity appears to be slowing down.

The National Surge in Sports Betting

The $1.76 billion wagered nationally represents a nearly 27% increase compared to the previous year. This surge coincides with increased advertising from sportsbooks, including campaigns featuring celebrities, aimed at attracting a growing audience. Antoine Smith, a sports bettor, noted the prevalence of sports betting and artificial intelligence-driven ads during the Super Bowl broadcast, stating, “We were overwhelmed. It was a lot. I feel like most of the advertisements were either AI or sports betting.”

Did You Know? The American Gaming Association estimates that $1.76 billion was legally wagered on Super Bowl LX.

Illinois: A Diverging Trend

While the national picture shows growth, Illinois is experiencing a decline in sports betting. The Illinois Gaming Board’s report indicates three consecutive months of 15% decreases in the number of bets placed since the implementation of a per-bet tax in July. This trend is unique among states with online sports wagering, according to Joe Maloney, President of the Sports Betting Alliance.

The Impact of the Tax

Illinois imposes a fee of $0.25 to $0.50 on each online wager. This has led to major platforms like DraftKings and FanDuel adding a $0.50 surcharge for bets placed within the state. Maloney argues that this tax creates a pricing disadvantage, stating, “It’s no different than choosing which drugstore to conduct your business…When you have choice on a marketplace, you’re going to go where there is the best pricing.”

Expert Insight: The situation in Illinois highlights the delicate balance states face when regulating sports betting. While taxation provides revenue, it also risks driving bettors to unregulated markets or neighboring states with more favorable conditions.

Bettors like Antoine Smith have already noticed the impact, saying, “I bet less than I used to because of this…it’s definitely made me slow down a little bit more.” Maloney further warns that the tax could push bettors towards illegal markets or across state lines to find better value.

What Could Happen Next?

If the decline in betting volume continues, Illinois may consider adjusting its tax structure to remain competitive with other states. Alternatively, the state could maintain the current tax rate and accept a potentially smaller share of the sports betting market. This proves also possible that the state will see an increase in activity from illegal betting operations. Governor JB Pritzker’s office has not yet commented on the situation.

Frequently Asked Questions

What was the total amount wagered on Super Bowl LX nationally?

Americans legally wagered a record $1.76 billion on Super Bowl LX, according to the American Gaming Association.

How has the per-bet tax affected sports betting in Illinois?

Illinois has seen three consecutive months of 15% declines in the number of bets placed since enacting a per-bet tax last July.

What is the Sports Betting Alliance’s position on the Illinois tax?

The Sports Betting Alliance argues that the tax makes Illinois less competitive and could drive bettors to illegal markets or neighboring states.

As sports betting continues to evolve, how might states balance revenue generation with maintaining a competitive and regulated market?