Rush Street Interactive has become the latest company in Illinois to take measures against the newly proposed and enacted tax increase, which is going to significantly upset local operations and add pressure to companies to stay competitive in the face of the offshore market.
Or so the industry claims. Companies have decided to act in a variety of ways. For example, some have said that they would charge a percentage on each player’s bet as an extra fee and pass the tax on to their customers.
RSI Responds to Betting Levy in Illinois, Sets Minimum $1 Bet Value
Rush Street Interactive is acting in another way, opting to set a $1 minimum bet, and essentially following the example of BetMGM and Hard Rock Bet. A total of six companies have responded to the measures so far.
Although everyone is finding a new way to operate in these realities, there is stiff competition as to how this should be done. For example, Rush Street Interactive presently offers the lowest minimum wager amount, as BetMGM is demanding the highest – $2.50, and Hard Rock Bet has tried to edge out BetMGM with $2, only to be beaten by the new entrant.
Rush Street Interactive CFO Kyle Sauers has commented on what is happening in Illinois and said that the company was determined to protect its best interests while ensuring that the player experience will not be disrupted.
“We haven’t shared plans yet on exactly what we plan to do. We’re trying to make sure that we’re blending goals of a great player experience, but also appropriate economics for us.”
“What we have done to date is we’ve moved the minimum bet up to $1. So that’s the move thus far, but we’re remaining flexible to figure out the right way to approach it as we get towards NFL season,” Sauers added.
However, Rush Street Interactive decided to try and outdo the competition in providing the lowest possible disruption to players.
Keeping the Minimum Bet Low Is Not Always a Competitive Edge
Analysts, though, are wondering whether this gamble would pay off, as the company is one of the most financially challenged, and lowering the minimum wagering amount is not in itself going to ensure sustainability.
For example, other companies may follow the example set by Rush Street Interactive and set a much lower amount. Despite the company’s difficulties, it has been doing well, and its stock has been gaining, arguably the best of all gaming equities.