Illinois sports betting posted its steepest year-over-year decline of 2026 in May, with the state’s online and retail operators taking $1.14 billion in wagers, down 10.2 percent from the same month last year. The Illinois Gaming Board figures, reported Tuesday, land in the middle of a World Cup summer that is smashing betting records elsewhere, and they say a lot about what the state’s aggressive betting taxes are doing to the market.
Key Takeaways
- May handle was $1.14 billion, down 10.2% year over year, the largest drop of 2026 and the fourth down month this year.
- The number of wagers placed fell 21% versus May 2025.
- Operator revenue held up far better: $118.9 million adjusted revenue, down just 1.7%, on a strong 10.4% hold.
- The state took $52.5 million in tax from the progressive levy, up from $45.2 million a year earlier, plus $10.4 million from the per-wager tax.
- Illinois has still cleared $1 billion in handle for nine straight months and remains the nation’s No. 2 betting market.
The Numbers
May was the fourth month this year to post a year-over-year handle decline, and the deepest. Fewer bets were placed too, 21 percent fewer than May 2025, though that was an improvement on April, when the bet count fell 25 percent. The month’s sports calendar was hardly thin: the NBA and NHL playoffs, MLB, the Kentucky Derby, the Indianapolis 500 and the PGA Championship all fell inside it.
| Metric | May 2026 | vs May 2025 |
|---|---|---|
| Handle | $1.14 billion | -10.2% |
| Number of wagers | n/a | -21% |
| Adjusted revenue | $118.9 million | -1.7% |
| Hold | 10.4% | up nearly a full point |
| Progressive tax collected | $52.5 million | up from $45.2 million |
| Per-wager tax collected | $10.4 million | n/a (new levy) |
Operators kept revenue nearly flat despite the shrinking handle thanks to a 10.4 percent hold, almost a point better than a year earlier. Monthly revenue has not dipped below $100 million since July 2025.
Winners and Losers on the Operator Board
DraftKings again led the state in dollars wagered with a $416.2 million handle. FanDuel turned a smaller $306.2 million handle into the revenue crown, holding a massive 14.5 percent for $44.5 million in adjusted revenue. Between them, the two giants paid $9 million of the month’s per-wager tax. Fanatics held 8.8 percent of a $110.1 million handle, while BetMGM managed just a 6.2 percent hold on $80.5 million.
The Tax Squeeze Behind the Slide
The taxman is the one party with nothing to complain about. Between the progressive levy on operator revenue and the state’s per-wager fee, Illinois collected more from betting in May than it did a year ago even as the market shrank. Cook County collected another $1.3 million from Chicago-area play.
That is exactly the trade-off critics of the state’s escalating taxes predicted. Operators have responded to the per-wager fee with surcharges and minimum-bet changes that hit small recreational bettors hardest, and the falling bet counts suggest those players are pulling back or going elsewhere. Industry figures also point at prediction markets, which saw a surge of sports-contract action ahead of the World Cup. Illinois lawmakers noticed, folding a 14.25 percent tax on prediction market transaction fees into the latest state budget, a move Governor JB Pritzker championed.
Zoom out and the state’s take keeps compounding: by CasinoBeats’ tally of the state figures, Illinois has collected more than $1.34 billion in sports betting taxes since launch. That pile is exactly why lawmakers treat the industry as a revenue faucet, and why operators warn the faucet’s pressure is dropping.
Down the Operator Table
Below the big two, the numbers tell a market-share story of their own. Fanatics produced the same adjusted revenue in May as it did in April despite the market’s slide, holding 8.8 percent of its $110.1 million handle. At the other end, bet365 edged out BetRivers for a top-10 handle spot, though BetRivers won the efficiency contest with a 10.9 percent hold against bet365’s 10.7. Chicago-area bettors alone generated $66.7 million in operator winnings, from which Cook County collected its $1.3 million share.
May’s sports calendar also carried plenty of soccer even before the World Cup: most European leagues closed out their seasons during the month, and Paris Saint-Germain met Arsenal in the Champions League final, with the Europa League and Conference League finals also decided in May. None of it stopped the slide in bet counts, which is why analysts keep pointing at structural causes rather than a quiet schedule.
The leading structural suspect is the state’s own tax design. Illinois layers a per-wager fee on top of one of the steepest progressive revenue taxes in the country, and the big operators responded with customer-facing surcharges and higher minimums. Prediction market platforms, which charge no betting surcharge and operate under federal commodities rules, picked up a surge of sports-contract volume in the same window. Lawmakers answered with the 14.25 percent tax on prediction market transaction fees in the latest budget, with Governor JB Pritzker among its chief proponents, drawing sharp criticism from the platforms.
The World Cup Question
The May report predates the tournament itself, and June’s figures will show whether the World Cup lifted Illinois the way it has lifted the coasts. Nationally the tournament has become the most-bet soccer event in US history, as we covered in our story on the record World Cup handle, and New York’s books have been posting half-billion-dollar weeks. Illinois still has scale on its side: nine straight billion-dollar months and the No. 2 market ranking nationally. Whether it also has growth is the question the next report answers. For how the tax-and-competition fight is playing out elsewhere, see our prediction markets explainer.
FAQ
Why is handle falling if revenue is stable?
Operators are holding a bigger share of each dollar bet, 10.4% in May. Fewer, likely smaller, bets are being placed, but pricing and parlay mix keep revenue up.
Did any operator gain ground in May?
FanDuel had the standout month, converting a 14.5% hold into the state revenue lead, and Fanatics matched its April revenue despite the market-wide slide.
Is Illinois still a top betting state?
Yes. Nine consecutive months above $1 billion in handle, second nationally behind only New York.
What is the per-wager tax?
Illinois charges operators a fee on every bet placed, on top of its progressive revenue tax. Operators have passed costs to customers through surcharges and minimums.
Sources: Covers, CasinoBeats
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