BetMGM imposing minimum bet of $2.50 in Illinois starting Wednesday
In the wake of a new two-tier, per-bet tax structure that took effect on July 1, 2025, sportsbooks in Illinois are adapting to significant financial pressures. The law requires mobile sportsbooks to pay $0.25 per bet on the first 20 million wagers annually, and $0.50 per bet beyond that threshold.
Operators such as BetMGM, Hard Rock Bet, DraftKings, FanDuel, and Fanatics are implementing changes to manage the increased costs, particularly for market leaders like DraftKings and FanDuel, whose effective tax rates have approached 40% on adjusted gross gaming revenue (AGGR) above $200 million, compared to the previous 15% flat rate.
BetMGM and Hard Rock Bet have chosen to set minimum bet amounts—$2.50 and $2.00, respectively—across all bet types. This move eliminates the ability for customers to place micro-bets that would be unprofitable under the new tax structure. On the other hand, DraftKings, FanDuel, and Fanatics have opted for per-bet surcharges: $0.50 per bet for DraftKings and FanDuel, and $0.25 per bet for Fanatics.
The Illinois Gaming Board reported that five of the ten active online sportsbooks in the state have implemented or announced financial measures in response to the tax hike. The shift away from micro-betting could particularly affect casual or value-seeking bettors, who may now find fewer opportunities to place very small wagers.
The decisions made by FanDuel and DraftKings could rub well-heeled bettors the wrong way due to the $0.50 surcharge on every wager. Meanwhile, some smaller sportsbooks in Illinois are hoping to attract disgruntled gamblers by not implementing a surcharge.
It remains to be seen how these changes will impact the broader sports betting market in Illinois. However, it is clear that operators are realigning the economics of sports betting in the state, with some choosing to discourage low-value bets, while others are passing costs directly to customers.
- The gambling industry, specifically sportsbook operators like BetMGM, Hard Rock Bet, DraftKings, FanDuel, and Fanatics, are restructuring their business models due to the financial pressures caused by the new tax structure in the sports betting market in Illinois.
- Financial measures such as the implementation of minimum bet amounts and per-bet surcharges have been adopted by several sportsbooks in Illinois, including DraftKings and FanDuel, aiming to manage the increased costs from the tax hike, which may potentially influence the behavior and preferences of different types of gamblers within the finance sector.
