Another amendment to the sports betting rules is winding its way through the Illinois legislature and could involve banning credit cards to fund players’ accounts.
No Credit for You
The Illinois legislature has recently adopted a per-bet fee attached to every wager, and now they are taking aim at how players fund their sportsbook accounts. The prohibition is being considered to reduce problem gambling in the state, and if it succeeds, Illinois would join six other states that have either banned credit card use or reversed decisions for the use of credit cards since Illinois sports betting launched in 2020.
It should be noted that customers in Illinois would still be able to use debit cards and ACH payments, used with funds available in the customers’ bank accounts. However, the minor change to the rules will no doubt diminish mobile sports gambling activity in the state.
“A growing body of recent research has identified prohibiting credit usage to fund wagering accounts as a sensible and worthwhile way to encourage responsible sports betting and mitigate the harms of compulsive gambling,” the notice of proposed amendment said. “Problem gamblers are particularly at risk, and studies have shown a willingness for compulsive gamblers to use credit to place bets.”
When the Illinois Gaming Board (IGB) adopted these rules in 2020, no such ban was discussed. But a recent review has led to an increased tax rate on sportsbooks’ revenue last year, followed by a per-bet fee this year. The most recent amendment would continue to erode the bottom lines of the sports betting platforms in the state.
“Existing IGB rules already ban credit card use for casino and video gaming wagers, so the proposed rulemaking would apply a consistent approach to Illinois sports wagering,” the notice said. “If this rule is adopted and credit cards are prohibited, sports betting patrons will remain able to use ACH/debit cards to load sports wagering accounts with money they have in their bank accounts and with money that patrons actually have at their disposal.”
The decision will rest with the state legislature’s Joint Committee on Administrative Rules, which will review the amendment and implement the change or not.
Industry Reactions
Although the introduction of the proposed credit card ban is new, it is not likely to go over well with mobile sportsbooks in the state, considering the recent spate of tax increases coupled with the most recent per-bet fee that began in July.
Any sportsbook accepting 20 million or fewer wagers will have to pay the state 25 cents per bet. However, sportsbooks will be required to pay the state 50 cents per bet on more than 20 million wagers.
This has caused industry titans like FanDuel and DraftKings to pass off the 50-cent-per-bet charge to their customers. Fanatics has followed suit by charging their customers a 25-cent per bet fee.
It has been reported that BetMGM has implemented a $2.50 minimum bet fee, while Hard Rock has confirmed a $2.00 minimum bet fee in response to the per-bet charge. FanDuel and DraftKings have both stated they would rescind the charges should the legislature repeal the per-bet fee amendment.
