When navigating the Illinois sports betting landscape, the difference between Tier 1 and Tier 2 bets is worth noting.
Per the state law that launched the Land of Lincoln’s legal sports betting market in March 2020, Tier 1 bets are “determined solely by the final score or final outcome of the sports event,” such as a money line bet or an under/over bet on the final score. Prop bets — those not determined by the final score, such as a bet on an individual player’s performance — are considered Tier 2.
Tier 2 bets are becoming increasingly important to the Illinois sports betting market, and in fact, over the past 12 months of sports betting numbers available, more money was placed on Tier 2 bets than Tier 1 bets.
Year-over-year data shows growth of in-game betting in Illinois
Data provided by the Illinois Gaming Board shows that, in the 12-month period from May 2023 to April 2024, bettors in Illinois put down $6,281,901,895.02 worth of handle, or 50.5% of the money wagered, on Tier 2 bets, as opposed to $6,146,906,742.97 of handle on Tier 1 bets. For bets on pro sports, where there’s even a more pronounced difference, 52.3% of the money wagered, or $5,552,185,324.18, went to Tier 2 bets, while $5,061,428,545.01 went to Tier 1 bets.
That’s despite current restrictions around betting on college sports in Illinois that just became more strict.
Betting on in-state collegiate teams was forbidden until the bill that brought sports betting to Illinois was passed in 2019. In 2021, an amendment was passed allowing Tier 1 betting on those teams if the wager was made in person at one of Illinois’ land-based casinos. But bettors still couldn’t place any Tier 2 wagers on the likes of Northwestern, DePaul, or Southern Illinois in person, and they couldn’t make those bets at all via mobile devices.
According to Legal Sports Report, a ban prohibiting Illinois sports betting apps from taking bets on in-state colleges was set to expire July 1, 2023, but the Senate voted 54-0 to extend it until July 1, 2024.
In-state college betting expires in Illinois
With no action taken in the most recent session, the law changed on July 1. Joe Miller, director of policy for the Illinois Gaming Board, told PlayIllinois,
“The sunset date was not extended in the spring 2024 legislative session. The provision of the Illinois Sports Wagering Act which permitted Tier 1 retail wagers on Illinois collegiate teams sunsets on July 1, 2024. Starting on that date, no additional wagers may be offered or accepted on Illinois collegiate teams. The original full prohibition on all wagering on Illinois collegiate teams will be in full effect once more.
All outstanding wagers (such as futures on next football season, for example) or outstanding tickets for already completed events should still be honored and remain valid. However, no new wagers may be placed after July 1.”
While in-person college betting made up $51,510,091.05 of the total handle from May 2023–April 2024, or an average of close to $4.3 million a month, that’s a tiny piece of the $1.8 billion bet on college sports in the state during that period, with the vast majority of money bet handled through mobile devices. And it’s an even smaller piece of the nearly $12.43 billion of total sports handle during that period, with more than $10.61 billion generated by pro sports betting.
Pro sports betting data shows inevitable movement towards Tier 2 bets
Tier 2 betting on college sports surpassed Tier 1 betting in only one of the 12 months in question, September 2023. College Tier 1 betting drew a $1.08 billion handle compared to the nearly $725 million of handle on Tier 2 betting.
In pro sports, in contrast, Tier 2 betting drew more handle than Tier 1 betting in nine of the 12 months, with only October 2023, November 2023, and April 2024 seeing Tier 1 handle winning out.
Those totals led to all Tier 2 bets, which includes the relatively small amount bet on motor racing that the Illinois Gaming Board tracks, beating out Tier 1 betting in six of the 12 months.
The biggest change coming to Illinois sports betting on July 1 may not have to do with the mobile betting situation but the taxes imposed on sportsbooks. After some debate involving Gov. J.B. Pritzker and General Assembly members, lawmakers came together to approve a 20% to 40% tax rate on sportsbooks operating in the state. The two most popular sports betting site operators, FanDuel and DraftKings, will be taxed at the 40% rate.