ESPN Bet is the latest operator to respond to the per-wager tax on betting in Illinois.
The PENN Entertainment-backed sportsbook raised its minimum bet amount in Illinois as the state enforces a new per-wager tax on licensed online sports betting operators. The new tax requirement charges online operators at least 25 cents per wager as part of a new fiscal budget. The per-wager tax jumps to 50 cents after the first 20 million bets in a year.
According to ESPN Bet’s updated house rules, the operator is requiring customers to place at least a $1 wager compared to a previous limit of 10 cents per bet. ESPN Bet joins other licensed Illinois sportsbooks in responding to the state’s per-wager tax on online wagers.
SBC Americas reached out to PENN, which confirmed the increased minimum stake.
Multiple operators take action in Illinois
BetMGM, BetRivers and Hard Rock Bet have taken a similar route by also raising bet limits. A BetMGM spokesperson confirmed to SBC Americas a minimum bet of $2.50 per customer in Illinois, while Hard Rock Bet raised its minimum bet in the Land of Lincoln to $2. Like ESPN Bet, Rush Street Interactive’s BetRivers brand raised its baseline from 10 cents to $1.
Meanwhile, DraftKings, FanDuel and Fanatics are passing the per-wager tax to customers via fees.
Starting Sept. 1, FanDuel and DraftKings will implement 50-cent transaction fees on every wager placed in Illinois. FanDuel made the decision as a result of the “significant increase in the cost of operating in Illinois” and plans to remove the fee if Illinois reverses the rule.
Fanatics will be adding a 25-cent transaction fee in the fall, according to a spokesperson.
It is uncertain at the time of writing whether those transaction fees themselves will also be taxable, but instructions sent to operators by the Illinois Gaming Board (IGB) suggest that they could well be.
Another year, another tax change in Illinois
Gov. J.B. Pritzker’s latest budget plan implements a per-wager tax after the state underwent another round of gambling-related tax changes in 2024. That year, Pritzker approved a budget that taxed sports betting operators on a sliding scale based on adjusted gross revenue. The scale calls for operators that generate more than $200 million in annual revenue to be taxed at a 40% rate. Operators under that threshold are taxed at 20%.
The Land of Lincoln had previously implemented a flat 15% rate for online sportsbooks.
Illinois could face additional changes as Chicago City Council members consider a local tax on online sports wagering. Chicago City Council members want to generate additional revenue as Mayor Brandon Johnson’s office collects data on a potential local betting tax.
ESPN Bet enhances online product
The operator is making efforts to upgrade its product despite facing recent tax changes.
Earlier this month, ESPN Bet announced plans to launch a personalized hub housed inside its app called FanCenter. The hub provides users with betting markets based on their favorite teams and players. It also supports the account linking technology offered by the ESPN Bet and ESPN apps while allowing users to find markets related to fantasy rosters.
ESPN Bet introduced FanCenter after creating its Mint Club in April, providing ESPN Bet customers who have linked their ESPN accounts with exclusive rewards and promotions.
ESPN is gearing up to launch its new direct-to-consumer streaming service later this month. PENN CEO Jay Snowden confirmed ESPN Bet will have a major presence.
ESPN and ESPN Bet plan to have “deep integrations” within the new OTT service.
