Illinois’ Per-Wager Tax Is Reshaping the State’s Betting Landscape

Illinois’ decision to implement a per-wager tax is starting to reshape how residents place their bets, with most sports wagering operators implementing measures to cope with the change. The tax change, approved in June, added a fee of $0.25 on the first 20 million online wagers placed in a fiscal year and $0.50 to every bet after that. Sportsbooks have described this measure as a blunt approach that could cause long-term harm to consumers.

Casual Players Now Have Limited Options

Illinois operators have been quick to adapt to the tax changes. In September, Caesars introduced a charge of $0.25 per wager, landing right in the middle of the NFL betting season. While parlays will count as a single wager, users who prefer to place several low-stakes wagers across a weekend could end up paying considerable fees.

Fanatics similarly introduced a $0.25 fee, while FanDuel and DraftKings opted for a heftier $0.50 charge. Since these two operators take the most bets in the state, their decision makes financial sense. Paradoxically, their high volume of wagers makes them especially vulnerable to the new tax structure.

However, other operators have chosen a different approach. BetMGM, BetRivers, ESPN BET, and Hard Rock Bet decided to raise minimum bet sizes rather than introduce a fee. This strategy offers better optics but still squeezes casual players, especially those who enjoy low-risk, low-cost betting. Circa, known for catering to higher-stakes customers, announced a $10 minimum, effectively cutting micro-bets from its Illinois offerings.

The Tax Shift Could Turn Consumers Toward Offshore Platforms

Casual bettors have suffered disproportionately from the tax changes. As operators raise minimums, a small parlay tossed in for a few cents during a game is no longer an option. At sportsbooks that have added explicit fees, the cost of placing multiple small bets now exceeds the wager itself. A bettor making ten 50-cent parlays at DraftKings on an NFL Sunday would have to pay $5 in fees before losing or winning a single bet.

These developments have caused Illinois to suddenly become one of the most expensive states in the country for small-stakes gambling as operators pass the tax burden down to players. While some operators could benefit from the situation by offering lower fees, industry representatives warn that consumers may migrate to offshore platforms, which face no taxes, impose no minimums, and lure bettors with aggressive promotions.

The Sports Betting Alliance has argued that a measure initially envisioned as a way to make big operators pay more is now disproportionately hurting those who bet for fun rather than profit. Online forums are increasingly filled with complaints from small-stakes players who say they will stop wagering or drive to Indiana rather than pay extra for something that used to cost nothing.