Illinois bettors set new handle record as Fanatics battles for share

Illinois bettors placed $1.078 billion in wagers in September 2026, marking the highest monthly handle in the state’s history. This record total surpassed the previous high of $1.070 billion from January 2023. DraftKings captured 38% of the Illinois handle this month with $409.9 million in wagers. While FanDuel produced 38% of the market revenue, totaling $38.3 million from $355.3 million in bets, it remains far ahead of Fanatics. Fanatics remains a distant player compared to these two leaders. The state’s progressive tax structure also influences revenue, with rates starting at 20% on revenue up to $30 million and climbing to 40% for revenue exceeding $200 million. Additionally, a per-wager excise tax of 50 cents applies to every wager after the first 20 million annual bets are accepted.

I think Fanatics’ attempt to capture market share in Illinois hits a massive, insurmountable wall built by FanDuel and DraftKings. Even as Fanatics attempts to leverage its massive e-commerce database to pull customers away from rivals, the company still only holds a 2% market share in Illinois according to the latest quarterly data from March 2026. In May 2026, Fanatics held an 8.8% hold on an $110.1 million handle, which produced $9.7 million in adjusted revenue. During that same May period, DraftKings saw a handle of $416.2 million while FanDuel controlled $306.2 million in handle. Curry Baker from Guggenheim Partners remains skeptical that Fanatics can catch up to the leaders.

Fanatics plans to grow through its recent acquisition of the U.S. business of PointsBet. This deal allowed the company to enter 18 states with a more established foundation. The brand expects to migrate existing PointsBet users to its new platform. Management believes a second mover advantage will help them compete with the leaders. However, the cost of acquiring customers remains a significant barrier to entry. The company also faces a shrinking market in some areas, as the Illinois handle fell 10.2% in May 2026 compared to the same month in 2025. This decline included a 21% drop in the number of bets placed compared to the previous May.

The Illinois competitive landscape

The competitive landscape in Illinois involves ten different online operators. While DraftKings and FanDuel continue to expand, newer players like Circa Sports entered the market late in September. Fanatics provides several incentives to lure bettors away from the leaders.

Fanatics promises a native app experience on iOS and Android to rival existing platforms. The company also manages four retail locations in Illinois, including Hawthorne Race Course and Club Hawthorne. These locations will receive brand-new self-service betting kiosks from Suzohapp. You already know that FanDuel and DraftKings dominate the space, but the aggressive promotion of FanCash might change how people view the smaller players. The brand also aims to leverage its large database of e-commerce customers to build a new user base. Early indications from other markets suggested that migrating these customers could be promising. Fanatics will continue to expand its presence in the Illinois market through both mobile apps and physical locations like the Players Pub & Grill in Prospect Heights. Will the integration of PointsBet technology provide enough of a technological edge to overcome the brand recognition of the market leaders?