ESPN BET raises Illinois minimum online wager to $1 after new per-bet tax

ESPN BET has increased its minimum online sports wager in Illinois to $1, up from 10 cents, effective August 8. The update, confirmed by the operator’s house rules, comes in response to Illinois’ new per-bet tax introduced in July.

Under the measure, operators pay $0.25 per bet for the first 20 million wagers in a year and $0.50 per bet beyond that threshold. The change, approved by state lawmakers earlier this year, has led to varied strategies among sportsbooks operating in Illinois.

DraftKings, Fanatics, and FanDuel have opted to apply transaction fees of $0.25 or $0.50 on all bets. BetRivers, BetMGM, and Hard Rock Bet have increased their minimum wager amounts, a path ESPN BET has also taken.

Industry analysts note that the changes could influence customer acquisition and retention, depending on whether bettors prefer higher minimums or transaction fees. Customers who avoid paying per-bet charges might favor operators with increased minimums instead.

The timing of ESPN BET’s policy shift coincides with the start of the football season, a period that typically drives higher betting volume. While the $1 minimum could deter small-stakes bettors, industry data suggests most wagers exceed that amount.

According to June data from the bet-tracking platform Juice Reel, the average single wager in the US was $41, while average parlay bets were $19. For bettors wagering at or above those levels, the minimum change is unlikely to alter behavior.

ESPN BET is operated by PENN Entertainment, which has invested heavily in its digital gaming segment, including its licensing partnership with ESPN. That agreement could be reconsidered in 2026 if performance targets are not met.

“As I said on our Q1 call, we are nearing an inflection point with our digital business, and we anticipate each quarter of 2025 delivering a lower loss sequentially throughout the year, and our interactive division to be profitable in the fourth quarter of 2025 and the full year of 2026, and beyond,” PENN CEO Jay Snowden said during last week’s earnings call. “This is still the case. The significant investments in interactive are undoubtedly behind us.”

One unresolved issue is whether Illinois will tax transaction fee revenue generated by operators charging per-bet fees. While some operators have questioned its taxability, the Illinois Gaming Board has indicated that such revenue will be subject to tax.