Illinois accepts sports wagers at a minimum of $10 according to Circa Sports' new rules.
In the wake of House Bill 1928, sportsbooks in Illinois are adapting to the new per-bet tax regime, with changes expected to roll out ahead of the September deadline.
The bill, which introduces a tiered per-bet tax, has prompted several sportsbooks to adjust their strategies. By setting higher minimum wagers, sportsbooks like Circa can limit the total number of bets processed while keeping their core odds and payouts intact. For instance, Circa Sports has increased its minimum bet to $10, while ESPN Bet has raised it to $1. BetMGM and Hard Rock Bet have introduced minimum bet thresholds of $2.50 and $2, respectively.
DraftKings and FanDuel, two of the largest players in the market, are expected to add a $0.50 per-wager transaction fee. This move is aimed at exceeding the 20 million bet limit where the higher tax applies. Fanatics Betting and Gaming, another major player, will implement a $0.25 per-wager fee for its Illinois customers.
Penn Entertainment, which owns ESPN Bet, has confirmed it will also implement a minimum bet threshold as part of its response to the new state budget. Other sportsbooks, such as BetRivers, operated by Rush Street Interactive, are monitoring the market to decide future actions as the NFL season approaches.
However, DraftKings has taken a different approach, arguing that fees should not be taxed and seeking to resolve this with Illinois authorities before moving forward. The uncertainty surrounding the tax treatment of these surcharges has led to cautious and varied reactions from sportsbooks as they navigate the new tax environment.
The higher tax tier will affect large sportsbooks processing tens of millions of wagers annually. Despite the adjustments, operators argue that without changes, the tax will erode margins and force them to adjust pricing, payouts, or customer fees.
Amidst the changes, BetUS is offering a 125% bonus on the first deposit up to $2,500, providing an attractive incentive for Illinois bettors. As the deadline approaches, it remains to be seen how the sports betting landscape in Illinois will continue to evolve.
In the finance landscape of Illinois, sportsbooks like DraftKings and Fanatics Betting and Gaming are implementing transaction fees, aiming to circumvent the higher tax tier imposed by House Bill 1928. Conversely, BetUS is offering bonuses to attract bettors, demonstrating the business strategies employed in the sports-betting sector as it adapts to the new tax regime.
