BetMGM to Roll Out $2.50 Minimum Wager in Illinois on Wednesday

Sports bettors in Illinois are in for a rude awakening, with planned changes to the betting landscape occasioned by the passage of a new law that will raise the financial pressure on sportsbooks.

BetMGM Bucks the Trend, Tries to Capitalize on Change

While FanDuel and DraftKings said that they would charge $0.50 on their customers’ bets, BetMGM has chosen to go a less intrusive way, obligating sports gamblers to instead place a minimum bet of $2.50 starting on Wednesday, July 16.

In a sense, BetMGM’s strategy is perhaps smarter, as it would ask players to meet the minimum betting requirement, which they probably already are. While this may drive away some punters, the impact of the decision could be far less prominent than the decisions made by DraftKings and FanDuel, whose strategy is to add $0.50 to every wager, which could rub even well-heeled bettors the wrong way.

Illinois, though, has been adamant about raising taxes on sportsbooks, as the Prairie State is looking to tax the gambling industry. This is the second tax hike that has happened in two years, and lawmakers may not be done with the final rate.

While BetMGM is going a different way, others, such as Fanatics, have tried to use this to their advantage, and waited for FanDuel and DraftKings to issue a $0.50 surcharge on every player bet, only to respond with a $0.25 surcharge of their own.

However, what matters here is whether companies that choose not to introduce the surcharge can compete. If FanDuel and DraftKings take a hit – as they surely will – there is no guarantee that those players will migrate to Fanatics or even BetMGM.

Expect All Sportsbooks to Introduce Minimum Bets

Observers have remarked, though, that BetMGM’s approach may be the most sensible to date, and FanDuel, DraftKings, and Fanatics may move fast to close the competitive disadvantage by introducing the same minimum bet requirements.

As to the nature of the $2.50 minimum bet at BetMGM, the change will apply to all wager types, including but not limited to parlays, Same Game Parlay, straight bets, round robins, and others.

However, not all sportsbooks in the state of Illinois are introducing a surcharge. Some smaller timers are hoping that disgruntled gamblers will end up registering with them instead.