Chavdar Vasilev is a gambling news writer with several years of experience in the iGaming industry. He started creating promotional content but soon found he loved reporting on the industry itself. Since then, he’s delivered...
Read Full BioBetMGM and Hard Rock Bet have become the latest operators to impose new bet requirements in Illinois, introducing minimum wager requirements in response to the state’s recent sports betting tax hike.
In a written communication to its customers, BetMGM informed them that, starting today, it requires a $2.50 minimum bet on all wager types. Those include straight bets, parlays, Same Game Parlays, round robins, and bonus bets.
BetMGM is not alone in implementing a minimum wager requirement. Hard Rock Bet has already implemented a $2 minimum requirement for all bets.
The change by the two operators comes as a direct response to Illinois’ new two-tier tax structure on mobile sports bets. The law requires operators to pay $0.25 per bet on the first 20 million wagers. After that threshold, the tax rises to $0.50 per bet.
The new tax went into effect on July 1.
FanDuel, DraftKings, Fanatics Opt for Bet Surcharge
While BetMGM and Hard Rock Bet chose to set higher minimums, other major operators are passing the tax directly to bettors through surcharges.
FanDuel became the first operator to respond by announcing a $0.50 surcharge on all bets, starting September 1. The operator highlighted that the recent tax hike was the second in a year.
In 2024, FanDuel’s tax on gross gaming revenue rose from 15% to 40%. The platform claims it absorbed those costs in 2024. However, it now says it must pass them on to consumers to protect its margins.
FanDuel’s decision sent a shockwave through the industry, with observers closely watching to see how investors and analysts would respond.
As the response was relatively positive, FanDuel’s rival DraftKings also announced a $0.50 surcharge shortly after. DraftKings carefully timed its announcement. Last year, it introduced a similar surcharge, following the Illinois hike, but faced heavy scrutiny. That forced it to abandon the idea.
The third sports betting operator to impose a surcharge is Fanatics. However, unlike DraftKings and FanDuel, Fanatics decided to impose a $0.25 surcharge instead of $0.50 surcharge.
Observers note that the lower fee is due to Fanatics not being expected to exceed the 20 million bets threshold. At the same time, a large part of the wagers placed on FanDuel and DraftKings will fall under the higher $0.50 per bet tax.
Meanwhile, the remaining mobile sportsbooks in the state, bet365, BetRivers, Caesars, ESPN Bet, and Circa, have not indicated whether they will impose a surcharge or a minimum bet requirement in Illinois.
Credit Card Ban Advances in Illinois
In another potential blow to Illinois mobile sportsbooks, the state has moved one step closer to banning the use of credit cards to place sports bets. Illinois already prohibits the use of credit cards in casinos and video gaming establishments within the state.
In April, the Illinois Gaming Board unanimously approved a prohibition on credit card usage at sportsbooks. That advanced the proposal through the state’s administrative process.
The proposed amendment to the state’s gambling laws was officially published in the July 11 Illinois Register as part of the required rule-making protocol.
As part of the process, the amendment is now under review by the Joint Committee on Administrative Rules. The committee will hold a public comment period until August 25, after which it will make a decision. The next meeting is scheduled for August 13.
If the committee approves the change, it would prohibit retail and online sportsbooks from accepting credit cards for deposits. Debit cards and bank transfers (ACH) will still be available as payment methods.
With a ban, Illinois would join six other states with similar provisions. They include Rhode Island, Iowa, Massachusetts, New Hampshire, Vermont, and Tennessee.
