Digital Wager Wire highlights the most significant events affecting the domestic and international sports betting and gaming industries each week throughout the year.
Vegas Suffering Tourism Drought
Clark County, and specifically Las Vegas, has suffered through several months of declining tourism in an area that subsists on its gaming and hospitality industry. It has been speculated that soaring costs and exorbitant resort fees are plaguing the once-exclusive area of gambling in the United States.
Moreover, consumers have more gaming options with resort casino destinations sprouting up throughout the nation, and access to sports betting in 39 states, as well as iGaming options in eight markets, has also contributed to the drop in foot traffic in the desert.
The combination of all these factors has left Sin City without the requisite out-of-towners making the pilgrimage to the nation’s gambling mecca. July’s financial report shows a year-over-year drop in tourism of 12%, which equates to 420,000 fewer visitors coming to Vegas than the previous year, according to the Las Vegas Convention and Visitors Authority.
Moreover, a change in the U.S. gambling losses tax code from 100% to 90% beginning in January 2026 has also dampened enthusiasm for gambling with casinos and licensed sportsbooks, particularly for professional gamblers.
However, Nevada’s House Ways and Means Committee has been vocal in its opposition to the change in President Trump’s budget amendment, stating the following: “For those of you concerned about this change, I can tell you that members on both sides of the aisle have heard you, and I know that many members on both sides of the aisle are open to working to address it before it goes into effect on January 1.”
Caesars Becomes Latest Illinois Sportsbook to Add Transaction Fees
Illinois has been relentless in taxing its licensed sportsbooks. In July 2024, Illinois raised its adjusted gross revenue tax rate on its licensed sportsbooks from 15% to a tiered system that charges the most popular sportsbooks the greatest tax.
The tiered system in Illinois is as follows:
- 20% on the first $30 million in AGR.
- 25% on AGR over $30 million, but not exceeding $50 million.
- 30% on AGR over $50 million, but not exceeding $75 million.
- 35% on AGR over $75 million, but not exceeding $100 million.
- 40% on AGR over $100 million
Naturally, that did not go over well with the sports betting platforms operating in the Land of Lincoln or its industry trade groups. However, that was just the legislature’s first salvo; this July, a per-bet fee of 25 cents on the first 20 million wagers and then a 50-cent fee on wagers exceeding 20 million.
FanDuel immediately implemented a 50-cent per bet fee on all transactions in Illinois, while DraftKings followed suit shortly thereafter. Other sportsbooks have added a 25-cent fee per wager, while some, like ESPN Bet and BetRivers, increased their minimums from 10 cents to $1.00, while Hard Rock Bet hiked its minimum from 10 cents to $2 per wager.
Caesars has recently announced it would also add a 25-cent per wager fee, stating:
“The tax is applied on each individual bet made,” Caesars said in an FAQ on its website. “Multi-leg bets like Parlays, Same-Game Parlays, and Round Robins are counted as one bet.”
Virtually all of the sportsbooks have promised to rescind the transaction fee if the Illinois legislature does the same.
