Once again, the state senator of Illinois, Christina Castro, has filed the Internet Casino Gaming Bill, demonstrating that the Land of Lincoln remains determined to pursue the introduction of online casino gaming within its borders.
- This year, the bill has experienced subtle modifications due to the lack of success of its previous version.
- Castro’s proposed legislation aims to prevent the implementation of any taxes related to “home rule.”
The latest bill suggests granting a gaming license the ability to offer a maximum of three branded skins and interstate poker. Additionally, it proposes implementing a 15% state tax on gross revenue, which differs from the previous year’s bill that suggested a 12% tax rate.
It can be difficult to obtain support.
The tax revenue generated by video gaming terminals (VGT) in the state is already astonishing. In 2022 alone, the state collected an impressive $786 million in taxes from VGTs, while local councils enjoyed an additional $135.5 million in tax revenue from the various VGTs across the state.
In 2019, the bill mandated that all six locations would be given new casino licenses to operate at either temporary or permanent venues by 2024.
The bill’s additional approach
The present legislation prohibits the implementation of any ‘home rule’ taxes, which grants cities, counties, and other local governments the authority to independently collect and manage sales and use tax, separate from the state.
The approach in Illinois for sports wagering will be different from the scheme mentioned. In addition to the proposed 15% tax, specific cities will also impose an extra 2% tax. For example, when sports operations begin in Chicago, there will be an additional 2% tax on wagers placed. It is anticipated that Betfair and DraftKings will introduce their sportsbook product in the same year.
The initial fee for obtaining a gaming license is $250,000, with a renewal fee of $100,000. In the event that the bill is approved, the Illinois Gaming Board has the authority to implement emergency regulations within a period of 90 days following its passage.
