Circa, ESPN Bet Move to Minimums on Illinois Sports Bets
In the most recent reactions to the state's newly enacted tax increase, Circa Sports and ESPN Bet joined a number of competitors in declaring new minimums on sports wagers made in Illinois.
In the Land of Lincoln, Penn Entertainment's ESPN Bet increased the minimum bet size from 10 cents to $1 on August 8. In the Midwest state, Circa, which uses a high-volume, low-hold strategy, set a minimum of $10, which is by far the highest minimum ever reported.
"We are reluctant to compromise our best-in-class betting splits or charge our customers a per-bet fee,” said Circa Sports founder and CEO Derek Stevens on X. “Beginning Monday, September 1, a $10 minimum wager will take effect, protecting the vast majority of bettors in Illinois. No one should have to pay a fee to make a wager.”
He is referring to a price that DraftKings, Fanatics, and FanDuel charge Illinois bettors, which is equivalent to a transaction cost per bet. For the first 20 million bets booked, the state is now charging operators 25 cents each wager; after that, the fee doubles to 50 cents every bet.
Move Around Illinois Not surprisingly
It's not unexpected that Circa, which last week acquired an untethered sports betting license in Missouri, is implementing a required bet size in Illinois. To his credit, long before he made a formal statement, Stevens hinted that it was a plausible possibility.
Stevens stated during a June episode of the "Follow the Money" program on the Vegas Stats & Information Network (VSiN) that the days of modest bets with no minimums will probably be over due to Illinois' decision to impose a per bet tax.
Stevens clarified in a video on X that Circa will not accept a fee for each wager and that the company is taking steps to "protect the sports bettor," highlighting that "real sports bettors of Illinois should not have to pay a fee to make a bet."
The competitors DraftKings, Fanatics, and FanDue are openly criticized in the film, which explicitly notes that they impose transaction fees in Illinois.
Minimums in Illinois Are Seen More Favorably
There are now at least five operators in Illinois who use bet size mandates, including BetMGM, Hard Rock, and Rush Street Interactive, in addition to Circa and ESPN Bet. In any case, the state's second increase in sports betting taxes in a single year has prompted a response from gaming companies.
However, because the criteria are modest and significantly smaller than the typical wager amount for the great majority of gamblers, the minimum bet size is winning in the court of public opinion.
However, bettors and industry watchers have criticized the per-bet levies, claiming that they are nothing more than DraftKings, Fanatics, and FanDuel transferring their tax liabilities to its patrons.
