Make that 10 out of 10. Bet365 has become the last licensed Illinois sportsbook to respond to the state’s per-wager fee.
The British sportsbook informed its customers in recent days that it will be imposing a per-wager fee, similar to the step taken by four other operators. However, unlike Caesars, DraftKings, Fanatics and FanDuel, bet365’s 25-cent surcharge only applies to bets worth less than $10.
The operator sent the below email to customers, which was confirmed to SBC Americas by bet365 customer service.
Any wagers above $10 will not incur the fee, and the charge will be refunded to customers for any bets voided or canceled.
Parlays are considered a single bet for tax purposes and so would only have the 25-cent fee applied once, while multiple straight bets on the same slip would all be taxed individually, assuming they are all below $10.
The operator divulged the Illinois change to users days after bet365 secured access to another U.S. state. The Maryland Lottery and Gaming Control Agency (MLGCA) approved bet365’s online and mobile sports betting license at a hearing on Aug. 28. Maryland is bet365’s fourth new U.S. state since March and its 15th overall. A 16th, Missouri, seems likely to follow.
Operators’ Illinois response varies amid tax uncertainty
Illinois’ tax fee is 25 cents on the first 20 million wagers an online sportsbook takes in a fiscal year and 50 cents per bet beyond that threshold. Bet365’s historical performance in Illinois implies it will likely only be on the hook for the lower fee.
While half of Illinois’ 10 authorized sportsbooks have passed the state tax charge onto customers in the form of a per-bet fee, the other five have instead responded with minimum bets of varying value.
Here’s a rundown of what every operator has done. Some sportsbooks have suggested there could be further shifts in the future.
- bet365 — $0.25 per-bet fee on bets below $10
- BetMGM — $2.50 minimum bet
- BetRivers — $1 minimum bet
- Caesars — $0.25 per-bet fee
- Circa Sports — $10 minimum bet
- DraftKings — $0.25 or $0.50 per-bet fee
- ESPN Bet — $1 minimum bet
- Fanatics — $0.25 per-bet fee
- FanDuel — $0.50 per-bet fee
- Hard Rock Bet — $2 minimum bet
DraftKings also applies threshold to surcharge
Unlike bet365, DraftKings will easily surpass the 20-million wager threshold and so will have to pay 50 cents on many of the bets in takes in Illinois.
Like bet365, it also outlined some conditions of its per-wager charge in recent days. DraftKings initially announced it would charge all customers 50 cents on all bets, but has now clarified that its fee, which came into effect on Monday, Sept. 1, begins at 25 cents and will not apply to parlays above $10, single bets above $50, or any bets placed with bonus bet tokens or placed by customers who are Silver tier or higher in the DraftKings Loyalty program.
Caesars ($0.25) and FanDuel ($0.50) also began charging Illinois customers their per-bet fee on Monday.
Who will tax the taxes?
The Illinois Gaming Board (IGB) has not explicitly confirmed whether or not the state-imposed per-bet tax charge will itself be taxable for operators, and operators do not seem sure either.
But the IGB sent operators a letter on July 10 in which it explained that operators will have to report the revenue made from the fees on their tax forms.
“Our position is this was a pass-through and it shouldn’t be taxed,” said DraftKings CEO Jason Robins on an August earnings call. “I think Illinois has taken a little bit of a different view on it. If it ends up being treated as taxable revenue, then there’s really no benefit to do that [per-wager fee] versus incorporating into the pricing.”
