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Illinois opted to impose a 25-cent “privilege” tax on wagering licensees for each mobile or online bet up to 20,000,000 bets and 50 cents on each bet after that. And now the state is paying the piper, so to speak.
What should be the most prosperous time of the year for US-based sports gambling firms is anything but that in Illinois.
Instead, the state reported a 15 percent drop in wagers...for the month of September.
Industry analsysts believe this is likely the result of gambling companies passing on these costs to consumers.
The Prices Passed Down to Consumers
Some operators charge an extra “transaction fee” built into each wager. For example:
- FanDuel (Illinois users) began charging $0.50 per wager starting September 1, 2025.
- DraftKings implemented a surcharge of $0.25 or $0.50 per wager, depending on bet type/size or user status.
Some operators chose not to add a per-bet fee, but instead increased the minimum bet amount for Illinois bettors. For example:
- BetMGM instituted a minimum bet of $2.50.
- Hard Rock Bet raised minimum to around $2.00.
Some others set higher minimums (e.g., $10) to avoid the per-bet surcharge.
The Price the State and Operators May Be Paying
Sports Betting Alliance of Illinois spokesperson Maura Possley said five million fewer bets were placed in Illinois this September compared to September 2024.
“It shows that bets plunged in Illinois after the law was put in place and is a red flag that Illinois sports fans are fleeing the legal betting market in favor of the cheaper, illegal market,” Possley told The Center Square."
- Gilbert Horowitz, Gambling911.com
