BetMGM is rolling out a new $2.50 minimum bet that will apply universally across all types of wagering activities the company offers in the state of Illinois starting today, Wednesday, July 16.
This is a direct response to the state’s decision to apply an additional tax of $0.50 on every wager after the 20th million wager in the state.
Surcharge is now the new reality in the Illinois sports betting reality - almost
Instead of absorbing the costs, however, most operators have decided to pass the bill onto their customers. FanDuel and DraftKings have both announced that they would impose a $0.50 surcharge, and Fanatics also tried to play it differently by imposing half of that amount, only $0.25.
First casino I have seen add a higher minimum bet because of the new Illinois per-bet fees. Expect them all to do this. I will bet less, which will mean less tax revenue for state. Short-sighted laws as usual. @ESPNBET@BetMGM@DKSportsbook@FDSportsbook@FanaticsBook… pic.twitter.com/DwrRtlcDsP
— Mark Walls (@wcmarkwalls) July 11, 2025
However, it may be BetMGM that walks away a winner in this case. The company has come up with a clever idea to not levy players outright but simply raise the minimum wager amount instead. This could be a more successful long-term tactic.
For starters, there is a good number of people who are already betting more than $2.50 or at least that amount. Secondly, even if there is blowback, players may feel that they are getting something in return – i.e., a bigger payout on the chance of placing a successful wager as opposed to paying an arbitrary extra tax on their wagers.
Ultimately, which strategy proves more resilient is difficult to determine, as only time will show. Illinois has been raising its taxes exponentially over the past several years, as the state is grappling with a large state deficit.
Even the current surcharge tax was a compromise on the part of lawmakers, who sought to raise taxes more on gambling. Licensed operators have warned that exponentially raising taxes for the regulated market would most likely empower black-market operators and put the licensed market at a significant disadvantage in terms of what it can offer locally.
Illinois is now taxing companies such as FanDuel and DraftKings at roughly 50%, but as the operators have demonstrated, they are willing to pass these costs onto consumers to the detriment of all.
