ESPN Bet updated its Illinois House Rules with a $1 minimum bet requirement after lawmakers passed House Bill 1928. Penn Entertainment confirmed the move, which puts them alongside other major operators making similar changes.
BetMGM and Hard Rock Bet already rolled out their own minimums in July – $2.50 and $2 respectively. It’s become the go-to strategy for handling Illinois’s new per-wager tax structure.
Why operators changed their betting policies
The new legislation hits sportsbooks with a $0.25 tax on each of their first 20 million bets, then jumps to $0.50 per wager after that. For high-volume operators, those costs add up fast.
Most major sportsbooks will blow through that 20 million threshold pretty quickly. That means they’re looking at 50 cents per bet in additional taxes, which cuts into margins significantly.
Lawmakers included this as part of the state budget process, creating a new revenue stream from Illinois’s growing sports betting market.
What different operators decided to do
ESPN Bet went with the minimum bet approach rather than passing fees directly to customers. Their $1 floor covers all bet types in Illinois.
BetMGM announced their $2.50 minimum back in July, saying it applies to “straight bets, parlays, Same Game Parlay and round robins.” They extended it to bonus bets and promotional tokens too.
“Starting Wednesday, July 16, 2025, BetMGM will increase the minimum bet for all wagers to $2.50,” the company said in their release.
But not everyone chose the same path. DraftKings, FanDuel and Fanatics Betting and Gaming went with transaction fees instead.
DraftKings and FanDuel both charge customers 50 cents per bet since they’ll definitely hit that higher tax bracket. Fanatics opted for a 25-cent fee, probably because they won’t reach 20 million bets as quickly.
How this reshapes Illinois sports betting
The Illinois Gaming Board just released July casino numbers showing $167.5 million in total revenue – that’s up 23.3% from last year. Sports betting continues driving growth.
Now, Illinois customers face two different pricing models depending on which app they use. Some operators protect small bettors with minimums but eliminate micro-betting options entirely.
Others let you bet any amount but tack on visible fees. It’s creating an interesting split in how companies handle the same regulatory challenge.
The minimum bet strategy works better for casual bettors who typically wager more than a dollar anyway. But it completely shuts out people who like placing tiny novelty bets or testing new strategies with minimal risk.
This could definitely shift market share as customers compare their total costs across different platforms.
