Illinois Sports Betting Falls 10% in May 2026 as Per-Wager Tax Bites

Illinois sports betting handle fell about 10% year on year to roughly $1.14bn in May 2026, its largest annual drop of the year, while the number of bets placed slid 21%, according to Illinois Gaming Board figures. The decline came even as World Cup anticipation lifted wagering elsewhere in the United States, and operators and lawmakers pointed to the state's per-wager transaction tax, introduced in July 2025, as the main drag on volume.

The headline number is stark for a top-three US betting market. Illinois took in $1,141,572,489 of wagers in May, per the Illinois Gaming Board (IGB), down around 10% from the same month in 2025 despite a 25% improvement over April. It was the ninth consecutive month above the $1bn mark, but the year-on-year direction was firmly negative, and the fall in the raw count of bets was sharper still.

How much did Illinois sports betting fall in May 2026?

Illinois handle fell roughly 10% year on year in May 2026, and the volume of individual bets fell about 21% over the same period. Adjusted revenue slipped nearly 2% compared with May 2025. The IGB reported an adjusted gross revenue of about $186.5m for the month at a hold of 16.33%, one of the higher win rates the state has recorded. Those figures describe a market where operators are keeping more per dollar wagered, but where the total flow of bets is shrinking.

Key facts from the May 2026 IGB report

• Total handle: about $1.14bn ($1,141,572,489), down roughly 10% year on year (IGB, May 2026).
• Bet volume: down about 21% year on year, the state's largest annual drop of 2026.
• Adjusted gross revenue: about $186.5m at a 16.33% hold (IGB).
• State tax revenue: roughly $54m, up about 16% year on year, with cumulative receipts past $1.34bn since launch.
• Consecutive months above $1bn handle: nine.

Why is Illinois betting volume dropping while tax revenue rises?

The split between falling volume and rising tax revenue is the direct result of how Illinois taxes bets. In mid 2024 the state moved to a graduated tax on operator revenue, and in July 2025 it layered on a per-wager transaction fee: 25 cents on each of an operator's first 20 million online bets in a year, rising to 50 cents on every bet beyond that threshold. Because the fee attaches to each ticket rather than to revenue, high-volume, low-stakes bettors became disproportionately expensive to serve, and operators responded by discouraging exactly that activity.

The result is a market that is smaller by count but richer per bet for the treasury. Tax receipts of around $54m in May were up about 16% on the prior year even as handle fell, and Illinois has now collected more than $1.34bn in sports betting taxes since the market opened. For the state, the policy is working as a revenue tool. For volume, the picture is the opposite.

How did DraftKings and FanDuel perform in Illinois?

DraftKings and FanDuel again dominated, combining for $722.4m of the state's handle in May and about $82.3m in adjusted revenue between them. DraftKings took the larger share of wagers at roughly $416.2m but ran a low hold of under 11%, while FanDuel drew about $306.2m in handle yet converted it more efficiently, posting about $44.5m in adjusted revenue on a 14.5% hold. Behind the two leaders, Fanatics handled about $110.1m and BetMGM about $80.5m, both at single-digit hold percentages for the month.

Illinois May 2026 sports betting at a glance

Metric	May 2026 figure	Year-on-year
Total handle	About $1.14bn	Down about 10%
Bets placed	Down sharply	Down about 21%
Adjusted gross revenue	About $186.5m	Down almost 2%
Hold	16.33%	Up
State tax revenue	About $54m	Up about 16%

What is the Illinois per-wager tax and how does it work?

The per-wager tax is a flat charge on every online bet an operator accepts. Under the structure in force since July 2025, the first 20 million wagers an operator books in a year carry a 25 cent fee each, and every wager after that costs 50 cents. Unlike a tax on gross gaming revenue, it does not scale with how much a customer stakes, so a $2 parlay and a $200 single both trigger the same charge. That design falls hardest on the recreational, high-frequency bettor placing many small wagers, which is precisely the customer that fuels reported handle.

How have sportsbooks responded to the Illinois tax?

Operators passed the cost straight to customers. Major books added transaction surcharges of 25 to 50 cents per bet in Illinois and lifted minimum stake requirements, in some cases to between $1 and $10, to strip out the smallest and least profitable tickets. The effect on the numbers has been visible for months. Ticket counts fell for four straight months from September to December 2025, including a 25% drop in December alone, and the May 2026 report shows the trend has carried into the current year rather than reversing.

Is Illinois trying to repeal the per-wager tax?

Yes. State Representative Daniel Didech filed House Bill 5143 to scrap the per-wager tax, arguing the fee is pushing bettors toward untaxed offshore and illegal sites rather than raising sustainable revenue. Didech also filed a companion measure, HB4171, to stop individual municipalities from stacking their own sportsbook taxes on top of the state charge. The bills reflect a growing concern among some legislators that the volume decline is a warning sign, not a rounding error.

The Sports Betting Alliance, the industry group representing FanDuel, DraftKings, BetMGM and Fanatics, described the falling ticket counts as "alarming evidence that tax hikes are creating a lose-lose situation for fans."

Did the World Cup boost Illinois betting?

Not in the pre-tournament window that May covers. The 2026 FIFA World Cup, co-hosted across the United States, drove wagering interest nationally, yet Illinois handle still fell year on year in the run-up. That combination is the clearest signal that the state's decline is structural rather than seasonal: even a marquee event that reliably lifts betting failed to offset the drag from higher per-bet costs and reduced low-stakes activity.

How does Illinois compare with other high-tax betting states?

Illinois is not alone in testing how far it can push betting taxes before behaviour changes. The state's experience echoes what has played out in other tightening markets, where higher levies have coincided with softer volumes and, in some cases, revenue that undershoots forecasts. The lesson emerging across jurisdictions is that a tax attached to the transaction, rather than to the margin, changes operator and customer behaviour quickly and measurably.

What does the May data mean for the rest of 2026?

The May report crystallises a year-long pattern: Illinois is generating record tax income from a shrinking base of bets. Whether that is sustainable depends on how far volumes fall and whether recreational bettors migrate to unregulated channels, the exact risk the repeal bill is meant to address. With the graduated revenue tax and the per-wager fee both in force, operators have limited room to absorb costs, and the state has a strong short-term incentive to keep the fee in place. The tension between those two facts is likely to define the Illinois market for the rest of the year.

Why this matters for the US betting industry

Illinois is a bellwether. As one of the largest regulated US sports betting markets, its willingness to tax per bet and the resulting volume drop are being watched closely by other states weighing similar measures. If the model raises money without collapsing the market, more states may copy it. If handle keeps sliding and money leaks to offshore books, the per-wager approach could become a cautionary tale. Either way, the May figures give both sides of that debate hard numbers to argue over.

Frequently asked questions

How much did Illinois sports betting handle fall in May 2026?

Illinois handle fell about 10% year on year to roughly $1.14bn, its largest annual drop of 2026, while the number of bets placed fell about 21%, per Illinois Gaming Board data.

What is the Illinois per-wager sports betting tax?

It is a flat fee on every online bet: 25 cents on an operator's first 20 million wagers in a year and 50 cents on every wager after that, in force since July 2025.

Why is Illinois tax revenue rising while betting falls?

The tax attaches to each bet and operator revenue rather than to shrinking volume, so receipts of about $54m in May rose roughly 16% year on year even as handle declined.

Who is trying to repeal the Illinois per-wager tax?

Representative Daniel Didech filed House Bill 5143 to repeal the per-wager fee, warning it drives bettors toward illegal and offshore sites.

Which operators lead the Illinois market?

DraftKings and FanDuel led May 2026 with a combined $722.4m in handle, followed by Fanatics at about $110.1m and BetMGM at about $80.5m.

Updated July 2026. Figures sourced from the Illinois Gaming Board monthly reports and industry coverage by CasinoBeats and Gambling Insider.