Major Illinois Sports Betting Companies, BetMGM and Hard Rock, Implement Minimum Wagers
As of July 1, 2025, the sports betting tax in Illinois has undergone a significant increase. The new tax structure imposes a per-bet excise fee of 25 cents on each wager up to 20 million bets per year, with the fee doubling to 50 cents per bet for each wager placed after the initial 20 million[1][3][5]. This tax hike makes Illinois one of the most expensive states for operators to conduct sports betting.
In response to this tax increase, some sportsbooks like BetMGM and Hard Rock Bet have increased their minimum bet sizes to help offset the new tax burden. Raising the minimum bet size reduces the number of individual wagers placed, thereby limiting how many bets the sportsbook pays the fixed per-bet tax on[1].
Potential Impacts on Operators and Small Bettors
The tax hike has put pressure on sportsbooks' profitability, forcing them to make tough decisions. Raising minimum bets is a countermeasure to control the volume of wagers subjected to the per-bet fee. However, this could reduce customer engagement or betting frequency, potentially hurting long-term revenue[1].
For small bettors, the higher minimum bets may price out casual or low-stake bettors, limiting betting accessibility and possibly reducing overall participation from this segment[1].
The Biggest Players in Illinois Sports Betting
Not all operators have followed suit in raising minimum bets. DraftKings, Fanatics, and FanDuel are each imposing per bet fees in Illinois, unlike BetMGM and Hard Rock. These per bet fees have drawn criticism from bettors and industry observers, as they perceive large companies are passing their tax burdens onto customers[2].
However, all three operators have stated they'd be willing to remove per bet levies if negotiations with Illinois lawmakers are successful[6].
The Future of Sports Betting in Illinois
The Illinois sports wagering tax increase affects all online sports betting operators in the state. As discussions about additional local taxes continue between Illinois lawmakers and Chicago City Council, the future of sports betting in Illinois remains uncertain[1][4].
[1] Chicago Tribune: Illinois sports betting tax hike: Here's what you need to know
[2] ESPN: Illinois bettors criticize DraftKings, FanDuel for raising per-bet fees
[3] Bloomberg: Illinois sports betting tax rate is among the highest in the US
[4] Crain's Chicago Business: Illinois sports betting tax hike sparks debate over local taxes
[5] Forbes: Illinois Sports Betting Tax Hike: What It Means For Operators And Bettors
[6] CBS Chicago: Illinois Sportsbooks Consider Removing Per-Bet Fees In Response To Tax Hike
- The tax increase on sports betting in Illinois has led some sportsbooks, like BetMGM and Hard Rock, to increase their minimum bet sizes to offset the new tax burden.
- The hike has put pressure on sportsbooks' profitability and could reduce betting accessibility for small or casual bettors, potentially limiting overall participation from this segment.
- Unlike BetMGM and Hard Rock, DraftKings, Fanatics, and FanDuel are imposing per-bet fees in Illinois, which has drawn criticism from bettors and industry observers.
- The future of sports betting in Illinois is uncertain due to ongoing discussions about additional local taxes between Illinois lawmakers and Chicago City Council.
- All three operators (DraftKings, Fanatics, and FanDuel) have stated they'd be willing to remove per-bet levies if negotiations with Illinois lawmakers are successful.
