BetRivers has raised the minimum stake for online sports bets in Illinois to $5. This is their second change in less than a year, reflecting how new state and city taxes are altering betting patterns in the region. The change occurs as operators navigate regulations making low-value bets costly to offer, resulting in significant changes in how sportsbooks structure their services.
BetRivers Boosts Minimum Bet as Illinois Per-Ticket Fee Cuts Volume
Illinois introduced a per-ticket fee last summer, requiring operators to pay $0.25 on every bet processed. The fee increases to $0.50 for companies handling over twenty million bets annually. This charge affects operators regardless of bet size, making tiny wagers costly. Industry data reveals that operators have paid out tens of millions of dollars since the system’s inception, while the state has experienced a significant decline in the total number of bets placed.
The impact varies across platforms. BetRivers, known for attracting many casual players who place small bets, has faced one of the largest declines. Since the new fee’s introduction, the number of bets it has received has decreased by about a third, totaling 2.8 million bets. Initially, the company raised its minimum bet to $1, and now it has increased it to $5 to offset the fixed cost associated with each bet.
Chicago Levy Deepens Strain, Forcing Illinois Sportsbooks to Adapt
Though Illinois’ per-bet fee is the primary driver of the shift, Chicago has imposed additional challenges. A local tax introduced at the beginning of the year demands a 10.25% cut from sports betting profits within the city. Betting companies must also obtain new city permits, adding more expenses to operate in Chicago. Several major operators, excluding BetRivers, took legal action claiming the city overreached. They requested an urgent halt to these regulations but withdrew the request after obtaining licenses, continuing their court battle.
Other sportsbooks in Illinois have adopted different strategies to comply. Circa increased its minimum bet to $10, the highest in the state. BetMGM set a $2.50 floor, while Hard Rock requires at least $2. Companies like FanDuel, DraftKings, Caesars, Fanatics, and bet365 opted to maintain lower minimums but impose extra fees per bet. Despite fewer small bets, the total amount wagered in Illinois has risen, and the state is collecting more tax revenue than before.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: SCCGManagement.com