Illinois raises minimum bets on sports with new tax hike

This football season, fans and sports bettors alike from Illinois are going to be in for a rude awakening as the cost of betting is increasing. Illinois imposed a new tax on all online sports wagers in July 2025, raising the minimum bets on sports throughout. In response to the news, operators such as BetRivers, Hard Rock Bet, and BetMGM have already increased their minimum sports wagers. BetRivers as the lowest with $1, but Hard Rock is at $2 and BetMGM sits at $2.50.

The sports betting industry is booming due to increased legalization in the United States. Lawmakers in Illinois see it as a lucrative source of tax revenue for the state. The law that has been put in place applies to the first $20 million sports wagers a sportsbook hosts within its first year. A 25-cent tax is added to each wager, and after that initial $20 million, the tax rises to 50 cents per bet.

This could potentially be a chain reaction to other states that are currently struggling financially. There’s already a list of other states that have implemented a tax hike on sports betting, like Louisiana, Maryland, New Jersey, and Ohio. Other states may follow suit sooner rather than later.

DraftKings to introduce transaction fee in Illinois

Beginning on September 1, DraftKings will impose a 50-cent transaction fee on all Illinois online and mobile wagers. DraftKings claims that this is a direct response to the state’s new tax.

DraftKings CEO Jason Robins expressed concerns that these fees might discourage recreational bettors.

“We are disappointed that Illinois policymakers have chosen to more than triple our tax rate over the past two years, and we are very concerned about what this will do to the legal, regulated industry. Meanwhile, Illinois continues to fuel the rapidly growing illegal industry, which pays no taxes or fees and provides none of the consumer protections that regulated operators offer,” said Robins.

Making low-stakes wagers may become less enjoyable for most fans, as they will have to spend more money on each wager. Robbins stated that he would remove minimum bets on sports if the state repeals its new tax, but that doesn’t seem likely at this time. Unless a better offer for players and operators arises, Illinois bettors will have to settle for fewer small bets, higher fees, and perhaps less fun.