The sports betting showdown between operators and lawmakers has taken another turn in the Land of Lincoln.
BetMGM and Hard Rock have both added a new minimum bet requirement for sports bettors in Illinois. The former has set the minimum at $2.50, while the latter has it at $2.00. These minimums will affect all bet types, including parlays and round robins.
The new minimums have been introduced in response to a new “per-bet” tax that took effect in Illinois on July 1. The tax requires sportsbooks to pay between $0.25 and $0.50 on each wager they accept. Sportsbooks were furious about the change, which came just one year after the state raised its annual tax rates.
The Sports Betting Alliance warned that the new tax would be passed on to bettors, which five sportsbooks have now done. FanDuel and DraftKings both added a fee of $0.50 for each bet placed, while Fanatics is charging $0.25.
While BetMGM and Hard Rock decided against adding a fee of their own, the minimum bet requirements will force many bettors to spend more.
The battle between sportsbooks and lawmakers over the new “pre-bet” tax is just beginning in Illinois, but it is already feeling one-sided. Five operators announce changes that will cost bettors money, and have gone directly to their customers to blame the state. This is creating anger among some residents, who believe they are being punished for the state’s poor budget shortfalls.
In addition to public pressure, there is also concern that the war with sportsbooks will ultimately shrink the thriving Illinois market. Neighboring Indiana has a low-tax market, meaning bettors can win more money on their wagers. Missouri is launching its own low-tax market on December 1, providing bettors in the southern part of the state with a more affordable option.
Lastly, there is a growing concern about bettors seeking out unregulated sportsbooks. These platforms are not subject to any fair play regulations and often lack problem gambling protocols. This creates a dangerous experience for bettors in the state and would be a bad look for lawmakers ahead of a critical 2026 election.
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