BetRivers Becomes Latest Sportsbook to Respond to Illinois Tax

The sports industry isn’t done responding to a controversial new tax change in the Land of Lincoln.

BetRivers Sportsbook has announced it is setting a new minimum bet requirement in Illinois. All bettors must now wager at least $1, raising it from $0.10. The operator confirmed the move was meant to offset losses from the state’s new per-bet tax, which charges a fee for each wager processed by sportsbooks. 

With the new change, six of Illinois’ ten sportsbooks have now taken action in response to the controversial new tax.

Small Change will Affect Many Bettors

The $1 minimum bet requirement may sound low, and it won’t affect many casual bettors. However, there is a large segment of gamblers who prefer placing longshot bets for under that amount. This allows them a chance for a big payout without risking much of their own money. 

With Illinois now requiring sportsbooks to pay between $0.25 and $0.50 on every wager accepted, several operators have chosen to raise their minimum bets. They claim that the cost to process these bets now exceeds the potential revenue generated. 

BetRivers joins Hard Rock and BetMGM in raising its minimum bet requirement, though those two operators set it at $2+. 

More Changes Could be Coming

The new minimum bet requirement was announced during a Q2 earnings call with parent company Rush Street Interactive (RSI). Chief Financial Officer Kyle Sauers announced, while also confirming that more changes could be coming. 

“On Illinois, we haven’t shared plans yet on exactly what we plan to do. We’re trying to make sure we’re blending goals of a great player experience but also appropriate economics for us,” Sauers shared on the call. “What we have done to date is we’ve moved the minimum bet up to $1. That’s the move thus far, but we’re remaining flexible to figure out the right way to approach it as we get towards NFL season.”

Bettors Could be the Biggest Losers of the Battle

On its surface, Illinois lawmakers and sportsbooks both have a lot riding on this battle. The state is risking millions in tax revenue, while sportsbooks stand to face similar action from other states. However, there is still a chance the biggest loser will end up being American bettors.

When you take a harder look at this debate, you can see the potential for both sportsbooks and the state to come out on top. If the market holds steady or grows despite all the recent changes, it will show that bettors are willing to pay more to place wagers. That means the state can continue increasing taxes, while sportsbooks can pass the added costs directly to consumers.

Regardless of the outcome, we expect the result of the sports betting showdown in Illinois to have a significant effect on other US markets.