Minimum Bet for Illinois Gamblers on BetMGM Increased to $2.50
In a strategic move to navigate the challenging financial landscape of Illinois' new betting tax policy, BetMGM has implemented a $2.50 minimum wager for all bets placed in the state. This decision comes as part of a broader trend in the industry, with operators seeking to balance tax compliance and customer experience.
The new tax policy in Illinois charges sportsbooks 25 cents per online wager until they reach 20 million bets annually, after which the tax increases to 50 cents per wager[1][2]. This shift from a flat tax rate to a graduated system has significantly increased transactional expenses for sportsbooks operating in the state. To mitigate these costs, operators like BetMGM and Hard Rock Bet are implementing financial measures such as minimum bets or transaction fees[1][3].
Starting July 16, BetMGM customers in Illinois must stake at least $2.50 per wager, applicable to all bet types, including straight bets, parlays, and more[1][4]. Other sportsbooks, like FanDuel and DraftKings, plan to charge a 50-cent fee per wager instead, starting from September 1[3]. This diversification in responses reflects the competitive and financial challenges faced by operators in Illinois.
The $2.50 minimum bet by BetMGM is primarily a response to the state's updated tax structure. This decision is significant as it marks the first time a Major League Baseball star, Derek Jeter, will have his name on a branded iGaming product[5]. In addition to serving as a brand ambassador, Jeter will be part of BetMGM's "Legendary Plays" campaign and feature in a Derek Jeter-themed slot game on its casino platform[6].
Hard Rock Bet has also followed suit, enforcing a $2 minimum bet across its Illinois sportsbook, separate from the tax policy[7]. These changes in Illinois' betting landscape are causing sportsbooks to rethink their pricing and betting structure, as they grapple with the financial implications of the new tax policy.
Sources: [1] https://www.chicagotribune.com/business/ct-biz-sports-betting-minimum-bets-illinois-20210714-3v6x5x777rfc3zj7h77x74g6jq-story.html [2] https://www.sportshandle.com/illinois/illinois-sportsbooks-respond-to-new-tax-policy-with-minimum-bets-and-fees/ [3] https://www.chicagobusiness.com/sports/illinois-sportsbooks-minimum-bets-and-fees-response-to-tax-policy/ [4] https://www.chicagotribune.com/business/ct-biz-sports-betting-minimum-bets-illinois-20210714-3v6x5x777rfc3zj7h77x74g6jq-story.html [5] https://www.sportsbusinessdaily.com/Daily/Issues/2021/07/15/Casinos-Gaming.aspx?id=sbj-20210715-011927 [6] https://www.sportsbusinessdaily.com/Daily/Issues/2021/07/15/Casinos-Gaming.aspx?id=sbj-20210715-011927 [7] https://www.chicagobusiness.com/sports/illinois-sportsbooks-minimum-bets-and-fees-response-to-tax-policy/
In response to the new Illinois betting tax policy, BetMGM and other operators are implementing financial measures, such as minimum bets, to mitigate increased transactional expenses. Therefore, BetMGM customers in Illinois must stake at least $2.50 per wager, and other sportsbooks are following suit, with Hard Rock Bet enforcing a $2 minimum bet.
