United Kingdom-based operator bet365 has become the tenth online sports betting operator to launch in Illinois, just ahead of 2025’s March Madness.
The Illinois Gaming Board granted the company a license on 17 December 2024 through a partnership with Walker’s Bluff Casino Resort. Despite having the license, it has yet to launch retail wagering in the state.
Illinois now becomes the twelfth state in which Bet365 is operational. Tennessee regulators also approved it, but it has yet to launch.
Illinois Regulatory Journey
The Prairie State was quick to react to the repeal of PASPA in 2018, but it was not until Governor. J.B. Pritzker included sports betting revenue as part of his 2019 budget, and lawmakers began to put forward bills in a bid to legalize sports betting.
Despite significant back-and-forth in the Illinois General Assembly, agreement was reached and Pritzker signed Illinois sports betting into law in June 2019. Retail sports betting launched at Rivers Des Plaines and Argosy Casino Alton in March 2020, but the global pandemic quickly shuttered operations.
Online sports betting was also legalized, but in-person registration was required. After lockdown rules saw retail locations closed, the stipulation was scrapped in May, and BetRivers Online launched in June. The number of operational sportsbooks reached five by the end of 2020, and five years later, it has reached double figures.
Will Higher Taxes Slow Illinois’ Sports Betting Growth?
The Illinois market is one of the biggest in the United States. In FY2024, sports betting adjusted gross revenue was $1.1 billion, marking the third year in which the Prairie State exceeded the $1 billion mark.
Tax revenue generated for state coffers was $166 million, up 16 percent from the year prior. In addition, the state generated $30.1 million in licensing fees, which will increase with bet365 operational in FY2025. Additional licenses untethered to a brick-and-mortar venue are still available, at $20 million each.
In July 2024, Illinois raised the sports betting tax rate from the initial flat rate of 15% AGR. The newly introduced system taxes retail and sports betting on a sliding scale from 20 percent to 40 percent, depending on the adjusted gross revenue.
The 2024 state revenue report read: “There is a concern that the additional tax burden will result in a reduced advertising budget for sportsbook operators, which would contribute to less overall sports wagering adjusted gross revenue.”
“Despite this possibility, sports wagering revenues have grown rapidly each year since its inception within the state. Given this trend and the recently added sportsbooks, it is believed that sports wagering will continue to grow overall despite a higher tax structure,” it continues.
The launch of Bet365 shows that the market is still considered competitive for sports betting operators. Analysts have expressed the potential for a pivot to crypto sportsbooks and other such websites as operators offer less value to try to offset the tax impact on profitability.
Explore more articles like this
Subscribe to the Markets Outlook newsletter
Get critical insights to spot investment opportunities, mitigate risks, and refine your trading strategies. Delivered every Monday
Coinpectra is a free to read website, by purchasing a product through affiliate links in our content, we may earn a commission at no extra cost for our readers. Which will allow us to finance our operations and continue with our research work for our readers. We ensure all recommendations go through in-depth editorial checks to maintain accuracy and quality. You can learn more about this on Content Guidelines and How We Rate pages.
