ESPN Bet Increases Illinois Betting Minimum Due to New Tax on Each Wager

Illinois began applying a per-bet tax on July 1, requiring operators to pay $0.25 on each of the first 20 million wagers they ngake annually, and $0.50 on every wager placed beyond that pointImage Source: Shutterstock.com

People who bet on sports in Illinois now have to put down at least $1 when they use ESPN Bet. This change happened because the state started taxing each bet. ESPN Betmade this switch on August 8, joining other betting companies that have changed their rules to deal with the extra costs.

Illinois’ New Betting Tax Prompts Different Strategies Among Sportsbooks

Illinoisstarted charging a tax on each bet on July 1. Bookmakers now pay $0.25 for each of their first 20 million wagers, and $0.50 for every bet after that. This new rule is expected to bring in about $36 million a year for the state. Sportsbooks have reacted in different ways to this change. Some companies, like DraftKings, FanDuel, and Fanatics, have decided to make users pay a fee of $0.25 or $0.50 per bet. Other firms, including BetMGM, Hard Rock Bet, BetRivers, and now ESPN Bet, have chosen to increase their minimum betting requirementsinstead.

ESPN Betchanged its minimum bet from $0.10 to $1 in its updated Illinois house rules. They did not make a big announcement about it. Some people who bet might notice they have to pay more now. However, most bets are already higher than $1 anyway, according to industry numbers. According to research by Juice Reel,in June, the average single bet in the US was $41. For parlay bets, the average was $19.

Sports betting expert Geoff Zochodnepointed out that Illinois taxes apply to pushed bets as well, which means some platforms might still charge fees on neutral outcomes, reported Covers. As football season nears, ESPN Bet’s choice to set a higher minimum instead of adding a fee could seem like a smaller change for customers.

Sportsbooks Clash Over Fees While PENN Targets Profitability

The taxhas caused arguments in the industry. Companies disagree about whether fee income should be taxed, though the Illinois Gaming Boardexpects it to be. The Boardalso reminded license holders not to mark pushed bets as void, stressing the need to follow the new system’s rules.

For ESPN Bet’s parent company, PENN Entertainment, the change happens at a key time. The company has put a lot of money into its online operations through its team-up with ESPN, and bosses have told investors that the online division will start making money soon.

PENN CEO Jay Snowdentold analysts that the company thinks its interactive business will start to make money in late 2025, and keep doing well into 2026. Caesars, bet365, andCirca Sportshave not decided what to do next in Illinois, so the market is still changing. However, ESPN Bet’s choice to bring in a small minimum instead of a direct fee might give it an edge with customers who like clear and steady betting costs.