Circa CEO Derek Stevens is experiencing the extreme highs and lows that can be an earmark of both the gaming industry and gambling itself. On the up side, Circa Sports was granted one of just two untethered sports betting licenses in the State of Missouri. That victory was quickly overshadowed by this week’s announcement that beginning on September 1, Circa will raise its minimum Wager to $10 in the state of Illinois in order to cope with a new transaction fee on individual wagers.
Speaking through a posting on Twitter, Stevens laid out Circa’s reasoning for the drastic change in policy saying, “After thoughtful consideration, we believe the best course of action for a low-hold, high-volume sportsbook such as Circa Sports is to raise the minimum wager in Illinois,” Stevens posted on X, formerly Twitter. “We are reluctant to compromise our best-in-class betting splits or charge our customers a per-bet fee. 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.”
At this point it’s unclear how this drastic policy change will impact Circa’s bottom line. In general, bets under $10 make up around 28 percent of all the sports betting wagers placed in the United States. That’s not a category that most sportsbooks, even Circa’s larger competitors like FanDuel and DraftKings, can easily dismiss. In recent filings with the State of Missouri, Steven said that 95 percent of the wagers placed at Circa are over $50, so maybe the impact will be minimal. Either way, Circa Sports has been on a bumpy ride that’s indicative of life in the regulated gaming industry.