Illinois Sports Betting Handle Continues to Grow in October

The Illinois sports betting market continued its impressive growth in October.

The Illinois Gaming Board released its sports betting numbers for the month this week. It showed the highest handle the state has seen in 2025, generating $42.9 million in tax revenue. 

However, the amount of wagers placed dropped by 16%, similar to the state's September decline.

October’s numbers give further clarity on the impact of Illinois’ per-wager tax, which went into effect on July 1. It continued a trend of fewer bets being placed, but for larger amounts. This trend is the result of sportsbooks adding higher minimum and/or per-wager fees. 

While the larger handle is a positive sign, the amount of tax revenue being generated is a concern. It was the first month the state saw over $40 million since June, before the per-wager tax went into effect. The NBA and NHL playoffs and the MLB regular season drove June’s substantial tax revenue. 

October is a far busier betting season, with the regular seasons for the NFL, college football, NBA, and NHL seasons underway, along with the MLB playoffs. While the handle was higher, the hold percentage was almost 6% lower, resulting in just $100,000 more in taxes.

Illinois sports betting numbers are expected to be shaken once again in January, when Chicago will add its own taxes and licensing requirements for online sportsbooks.

Chicago Tax Brings Fears of Market Collapse

Illinois took a significant risk when it raised tax rates on online sportsbooks twice in about a year. It has completely shattered the relationship between state lawmakers and operators, with bettors ultimately paying the price with higher costs to place wagers. October’s numbers show that taxes are causing the markets to shrink. 

State lawmakers asked Chicago council members to reject adding additional taxes and licenses of its own, but the request was denied. Starting on January 1, operators will need to pay a 10.25% tax and comply with new rules requiring city licenses. 

Critics of Chicago’s new changes fear council members didn’t fully consider the situation. DraftKings, FanDuel, and Fanatics have all accused the state of dishonest dealings, and new city taxes could further fracture the relationship. 

However, instead of adding more fees, the three operators could focus on their new prediction platforms, which aren’t required to obtain licenses from or pay taxes to the state. Those didn’t exist when the state raised its taxes, which means they now have a cheaper way to offer betting in the state without having to deal with local lawmakers.