Low Minimum Makes a Big Difference
Most ESPN Bet users in Illinois likely won’t notice the change, as they usually wager at least $1. However, there is a large segment of bettors who will place parlays or long-shot wagers for less than that. These low-risk, high-reward bets rarely win, but offer plenty of excitement for bettors.
Longshot bets are normally easy money for sportsbooks, but the cost to process wagers under $1 is high. With those wagers now being subject to a tax of $0.25 - $0.50, sportsbooks like ESPN Bet are losing money just by accepting them.
With more sportsbooks adding minimum wager requirements, this style of betting may not last much longer in the Land of Lincoln.
Is Illinois’ Sports Betting Battle Fueling Problem Gambling?
With the tax being in place for less than two months, it’s too soon to tell the impact it is having on the state’s sports betting market. However, there is a growing concern that it may be fueling another spike in problem gambling.
With the state’s top two sportsbooks, DraftKings and FanDuel, both adding a surcharge, many bettors could be looking for alternative options. Offshore and illegal sportsbooks would offer better prices and more favorable promotions, which may lure bettors away from the regulated market.
There is also concern over the impact of minimum bet surcharges. The fear is that it is raising the bar for when bettors need to reload their accounts, which could be dangerous for vulnerable populations.
More Changes Could be Coming
While almost all of Illinois’ online sportsbook operators have now taken action against the controversial “per-bet” tax. However, that doesn’t mean more won’t be coming.
The battle between state lawmakers and operators continues to rage on, with both sides refusing to give in since the tax went live on July 1. Some operators, including hometown BetRivers, have publicly stated that more changes could be coming if the tax remains in place.
