Illinois Tax Adjustments Spur Response from Sixth Casino Operator, Rush Street
Illinois Sports Betting Market Adapts to Tax Hike
The sports betting market in Illinois is undergoing changes as operators respond to an increased per-bet tax, with six companies so far adjusting their strategies to offset the additional costs.
At the forefront of this adaptation is Rush Street Interactive, which has taken a unique approach by setting a minimum bet value of $1, lower than its competitors. Kyle Sauers, the company's CFO, has commented on the situation, stating that Rush Street Interactive is aiming to protect its interests while maintaining a positive player experience.
Rush Street Interactive's strategy mirrors that of BetMGM and Hard Rock Bet, both of which have also lowered their minimum bet amounts. However, BetMGM demands the highest minimum wager amount at $2.50, while Hard Rock Bet has set a minimum wager amount of $2.
Other companies may potentially follow Rush Street Interactive's lead, as the lower minimum wager amount could help attract a wider range of bettors.
To manage the new tax burden, some operators have introduced fees per wager. FanDuel, for instance, has imposed a $0.50 fee per wager, effective from September 1, 2025, while DraftKings is expected to follow suit.
In an attempt to stay competitive, companies are also investing in brand engagement. BetMGM, for example, has appointed Derek Jeter as a brand ambassador and launched thematic campaigns and new games to retain bettor interest.
Different sportsbooks have varied policies on minimum bet amounts or fees, encouraging bettors to shop around for the most favorable terms. However, the increased minimum bets and fees could discourage casual and recreational gamblers, potentially pushing them towards sportsbooks in other states or other gambling options.
The financial sustainability of these strategies remains uncertain, especially for companies like Rush Street Interactive, which face financial challenges. Analysts are unsure if Rush Street Interactive's strategy of lowering the minimum wagering amount will lead to financial sustainability in the long run.
As the NFL season approaches, Rush Street Interactive is considering adjusting its approach regarding the minimum wager amount. The company is determined to protect its best interests while ensuring the player experience will not be disrupted.
With the Illinois sports betting market evolving, it remains to be seen how these changes will impact the competitive dynamics among sportsbooks within the state.
- In response to the increased tax burden in the sports betting market within Illinois, some companies are investing in brand engagement, as seen with BetMGM's appointment of Derek Jeter as a brand ambassador.
- Given the financial sustainability concerns, analysts are uncertain if Rush Street Interactive's strategy of lowering the minimum wagering amount will lead to long-term financial viability in the competitive casino-and-gambling industry of Illinois.
