Home BetMGM to impose Illinois minimum bet starting Wednesday

BetMGM to impose Illinois minimum bet starting Wednesday

BetMGM will enforce a $2.50 minimum bet in Illinois, as of Wednesday (July 16), as part of the response to the recent per-wager tax approved by the state legislature. 

In a written communication to customers, the company advised of the imminent change, making it the latest operator to act. 

The memo was presented with the letterhead of Par-A-Dice Casino, BetMGM’s retail casino partner in Illinois. 

The brief notice advised that the $2.50 minimum stake will be “applicable to all wager types,” including “bonuses, bonus bets, or tokens.” 

Despite the correspondence issued to its customers, there has been no public information released on the matter from BetMGM or Par-A-Dice.

What is the new betting charge tax in Illinois?

As of July 1 in the Prairie State, sportsbooks will pay 25 cents on the first 20 million online bets, and then 50 cent on every bet after that. 

There was some confusion whether the charge was $0.25 or 25% (per cent), but it is the former that will apply. 

With the added levy, bettors in the state should expect to see a difference in the prices offered by operators, with some of the major players already. 

DraftKings has followed FanDuel in adopting a transaction charge of 50 cents on every bet, win or lose, placed on its sportsbook platform in Illinois. 

Both entities will apply the charge from the start of September, with the proviso that it will immediately drop the levy if the state does the same. 

Peter Jackson, CEO of Flutter, FanDuel’s parent company, said in a statement to confirm the planned transaction fee: “We are disappointed that the Illinois Transaction Fee will disproportionately impact lower wagering recreational customers while also punishing those operators who have invested the most to grow the online regulated market in the state. 

He continued in a pointed warning to lawmakers: “We also believe the introduction of the Illinois Transaction Fee will likely motivate some Illinois-based customers to bet with unregulated operators. 

“These operators do not contribute tax revenue to the state, will not collect the newly announced transaction fee and do not offer the same levels of customer protection that regulated operators provide.”

DraftKings’ CEO Jason Robbins issued a similar statement, expressing that: “we are very concerned about what this will do to the legal, regulated industry.”

Image credit: BetMGM/X

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Graeme Hanna
Freelance Journalist

Graeme Hanna is a full-time, freelance writer with significant experience in online news as well as content writing. Since January 2021, he has contributed as a football and news writer for several mainstream UK titles including The Glasgow Times, Rangers Review, Manchester Evening News, MyLondon, Give Me Sport, and the Belfast News Letter. Graeme has worked across several briefs including news and feature writing in addition to other significant work experience in professional services. Now a contributing news writer at ReadWrite.com, he is involved with pitching relevant content for publication as well as writing engaging tech news stories.