BetRivers has again raised the minimum betting stake in Illinois as the company responds to a new Chicago city tax on gambling. Residents in the state are facing mounting fees and having to place higher stakes as lawmakers look to cash in on the popularity of sports betting.
Rush Street Interactive (RSI), the company behind the gambling platform BetRivers, confirmed bettors will have to stake at least $5 in Illinois, an increase from the $1 minimum stake the company introduced last year.
The latest increase comes as operators are hit with a new city tax in Chicago. The city is now charging companies an additional 10.25% tax on revenue generated from accepting bets from residents of the Windy City.
In addition to its online operations, BetRivers operates one retail sportsbook in Illinois, at the Rivers Casino in Des Plaines.
The company offers betting markets on a wide range of popular esports titles, including League of Legends, Dota 2, Counter-Strike, and Valorant.
Chicago Tax Active Despite Challenges
Lawmakers have introduced legislation to block the Chicago city tax, but the bill has yet to progress beyond an initial referral to the House’s Rules Committee.
The Sports Betting Alliance (SBA), a group of betting companies, which does not include RSI, has also filed a lawsuit against the city over the tax.
In addition to paying the additional taxes, companies must also obtain licenses to continue their operations. The city granted last-minute licenses to companies, allowing them to operate legally under the new regulations that took effect on January 1.
As a result of the city granting its members a license, the SBA withdrew its request for an immediate injunction against the new regulations. However, the group is proceeding with the lawsuit in an attempt to repeal the measures.
Higher Stakes Or Betting Fees As State Taxes Gambling
BetRivers first introduced a minimum stake of $1 after Illinois implemented a per-bet fee for operators. Companies now must pay $0.25 for every bet they accept in the state, with larger operators who accept more than 20 million bets per year charged $0.50.
In response, operators either charged users directly for placing bets or raised the minimum stake. BetRivers’ $1 minimum was at the low end of the spectrum, with Circa Sports introducing a $10 minimum.
Hard Rock Bet now has a $2 minimum, and BetMGM has a $2.50 minimum. FanDuel, DraftKings, Caesars, and Fanatics all chose to charge gamblers a fee of $0.50 or $0.25 for placing bets.
State Benefits As Casual Bettors Lose Out
These fees may have put off many small-stakes esports bettors. The state reported that betting volume decreased following the implementation of the per-bet tax in September. However, overall betting handle increased, and the state has benefited from collecting more tax revenue.
In October, Illinois set a new record of $1.6 billion in wagers placed, surpassing the previous record of $1.53 billion set in November 2024. Revenue also increased, reaching $135 million.
This led to the state generating $41.5 million in tax revenue, with $14.7 million of that coming from the betting surcharge. Overall, tax revenue increased 70% compared to October 2024.
Chicago City Mayor Brandon Johnson included the additional tax in his 2026 budget plan, released in October.
Projections estimate it could generate $26 million per year for the city, contributing to a budget shortfall of $1.15 billion.