Minimum sports bets increased by ESPN Bet in Illinois to $1
In a strategic move to offset the impact of a new per-bet tax imposed by the state, ESPN Bet, an online sports betting operator in Illinois, has raised its minimum wager from 10 cents to $1. This adjustment is part of a broader trend among sports betting operators in the state, as they seek to manage increased costs resulting from the new tax.
Illinois has implemented a per-bet tax on sports betting, charging operators 25 cents on each of the first 20 million bets placed annually, rising to 50 cents per bet thereafter. This tax, which started in July, has led to changes in the minimum wagering limits for multiple sports betting operators in the state.
ESPN Bet, backed by PENN Entertainment, opted to raise the minimum bet to $1 as a relatively moderate adjustment aimed at maintaining market share and attracting bettors who typically wager amounts above this level anyway. This approach helps ESPN Bet navigate the tax burden and aligns with their goal to reach profitability in their interactive betting division by late 2025.
Other sportsbooks, such as DraftKings and FanDuel, have implemented transaction fees on bets, while others, including ESPN Bet and BetRivers, have raised their minimum bet limits to offset the tax impact without direct fees to customers. A spokesperson for ESPN Bet has confirmed the update to the operator's wagering requirements.
The increase in ESPN Bet's minimum online bet in Illinois from 10 cents to $1 was effective on Aug. 8, according to the operator's house rules. This adjustment by ESPN BET in Illinois is in response to the new per-bet tax, and it is similar to changes made by other sports betting operators in the state.
The new minimum wagering limit for ESPN BET in Illinois is $1, a significant increase from the previous 10 cents. This strategic response by Illinois sportsbooks to the new state-mandated per-bet tax is designed to mitigate increased costs while adapting to market and regulatory conditions.
Sports betting operators in Illinois, including ESPN Bet, have developed strategies to manage the impact of the new per-bet tax. For example, ESPN Bet increased its minimum wager from 10 cents to $1 to offset the tax costs, aiming to maintain market share and reach profitability by late 2025. Other operators, such as DraftKings and FanDuel, have implemented transaction fees or raised minimum bets like ESPN Bet and BetRivers.
