SB1303 103RD GENERAL ASSEMBLY

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024
SB1303

Introduced 2/3/2023, by Sen. Laura M. Murphy

SYNOPSIS AS INTRODUCED:

230 ILCS 10/13 from Ch. 120, par. 2413

Amends the Illinois Gambling Act. Provides that beginning on the first day an owners licensee (rather than just an owners license authorizing the conduct of riverboat gambling in one of the specified townships of Cook County) conducts gambling operations, either in a temporary facility or a permanent facility, and ending on July 31, 2042, from the tax revenue deposited in the State Gaming Fund, $5,000,000 shall be paid annually, subject to appropriation, to the host municipality of that owners licensee of a license issued or re-issued pursuant to provisions concerning re-issuance of revoked or non-renewed owners licenses before January 1, 2012. Effective immediately.

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A BILL FOR

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1 AN ACT concerning gaming.

2 Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4 Section 5. The Illinois Gambling Act is amended by

5 changing Section 13 as follows:

6 (230 ILCS 10/13) (from Ch. 120, par. 2413)

7 Sec. 13. Wagering tax; rate; distribution.

8 (a) Until January 1, 1998, a tax is imposed on the adjusted

9 gross receipts received from gambling games authorized under

10 this Act at the rate of 20%.

11 (a-1) From January 1, 1998 until July 1, 2002, a privilege

12 tax is imposed on persons engaged in the business of

13 conducting riverboat gambling operations, based on the

14 adjusted gross receipts received by a licensed owner from

15 gambling games authorized under this Act at the following

16 rates:

17 15% of annual adjusted gross receipts up to and

18 including $25,000,000;

19 20% of annual adjusted gross receipts in excess of

20 $25,000,000 but not exceeding $50,000,000;

21 25% of annual adjusted gross receipts in excess of

22 $50,000,000 but not exceeding $75,000,000;

23 30% of annual adjusted gross receipts in excess of

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1 $75,000,000 but not exceeding $100,000,000;

2 35% of annual adjusted gross receipts in excess of

3 $100,000,000.

4 (a-2) From July 1, 2002 until July 1, 2003, a privilege tax

5 is imposed on persons engaged in the business of conducting

6 riverboat gambling operations, other than licensed managers

7 conducting riverboat gambling operations on behalf of the

8 State, based on the adjusted gross receipts received by a

9 licensed owner from gambling games authorized under this Act

10 at the following rates:

11 15% of annual adjusted gross receipts up to and

12 including $25,000,000;

13 22.5% of annual adjusted gross receipts in excess of

14 $25,000,000 but not exceeding $50,000,000;

15 27.5% of annual adjusted gross receipts in excess of

16 $50,000,000 but not exceeding $75,000,000;

17 32.5% of annual adjusted gross receipts in excess of

18 $75,000,000 but not exceeding $100,000,000;

19 37.5% of annual adjusted gross receipts in excess of

20 $100,000,000 but not exceeding $150,000,000;

21 45% of annual adjusted gross receipts in excess of

22 $150,000,000 but not exceeding $200,000,000;

23 50% of annual adjusted gross receipts in excess of

24 $200,000,000.

25 (a-3) Beginning July 1, 2003, a privilege tax is imposed

26 on persons engaged in the business of conducting riverboat

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1 gambling operations, other than licensed managers conducting

2 riverboat gambling operations on behalf of the State, based on

3 the adjusted gross receipts received by a licensed owner from

4 gambling games authorized under this Act at the following

5 rates:

6 15% of annual adjusted gross receipts up to and

7 including $25,000,000;

8 27.5% of annual adjusted gross receipts in excess of

9 $25,000,000 but not exceeding $37,500,000;

10 32.5% of annual adjusted gross receipts in excess of

11 $37,500,000 but not exceeding $50,000,000;

12 37.5% of annual adjusted gross receipts in excess of

13 $50,000,000 but not exceeding $75,000,000;

14 45% of annual adjusted gross receipts in excess of

15 $75,000,000 but not exceeding $100,000,000;

16 50% of annual adjusted gross receipts in excess of

17 $100,000,000 but not exceeding $250,000,000;

18 70% of annual adjusted gross receipts in excess of

19 $250,000,000.

20 An amount equal to the amount of wagering taxes collected

21 under this subsection (a-3) that are in addition to the amount

22 of wagering taxes that would have been collected if the

23 wagering tax rates under subsection (a-2) were in effect shall

24 be paid into the Common School Fund.

25 The privilege tax imposed under this subsection (a-3)

26 shall no longer be imposed beginning on the earlier of (i) July

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1 1, 2005; (ii) the first date after June 20, 2003 that riverboat

2 gambling operations are conducted pursuant to a dormant

3 license; or (iii) the first day that riverboat gambling

4 operations are conducted under the authority of an owners

5 license that is in addition to the 10 owners licenses

6 initially authorized under this Act. For the purposes of this

7 subsection (a-3), the term "dormant license" means an owners

8 license that is authorized by this Act under which no

9 riverboat gambling operations are being conducted on June 20,

10 2003.

11 (a-4) Beginning on the first day on which the tax imposed

12 under subsection (a-3) is no longer imposed and ending upon

13 the imposition of the privilege tax under subsection (a-5) of

14 this Section, a privilege tax is imposed on persons engaged in

15 the business of conducting gambling operations, other than

16 licensed managers conducting riverboat gambling operations on

17 behalf of the State, based on the adjusted gross receipts

18 received by a licensed owner from gambling games authorized

19 under this Act at the following rates:

20 15% of annual adjusted gross receipts up to and

21 including $25,000,000;

22 22.5% of annual adjusted gross receipts in excess of

23 $25,000,000 but not exceeding $50,000,000;

24 27.5% of annual adjusted gross receipts in excess of

25 $50,000,000 but not exceeding $75,000,000;

26 32.5% of annual adjusted gross receipts in excess of

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1 $75,000,000 but not exceeding $100,000,000;

2 37.5% of annual adjusted gross receipts in excess of

3 $100,000,000 but not exceeding $150,000,000;

4 45% of annual adjusted gross receipts in excess of

5 $150,000,000 but not exceeding $200,000,000;

6 50% of annual adjusted gross receipts in excess of

7 $200,000,000.

8 For the imposition of the privilege tax in this subsection

9 (a-4), amounts paid pursuant to item (1) of subsection (b) of

10 Section 56 of the Illinois Horse Racing Act of 1975 shall not

11 be included in the determination of adjusted gross receipts.

12 (a-5)(1) Beginning on July 1, 2020, a privilege tax is

13 imposed on persons engaged in the business of conducting

14 gambling operations, other than the owners licensee under

15 paragraph (1) of subsection (e-5) of Section 7 and licensed

16 managers conducting riverboat gambling operations on behalf of

17 the State, based on the adjusted gross receipts received by

18 such licensee from the gambling games authorized under this

19 Act. The privilege tax for all gambling games other than table

20 games, including, but not limited to, slot machines, video

21 game of chance gambling, and electronic gambling games shall

22 be at the following rates:

23 15% of annual adjusted gross receipts up to and

24 including $25,000,000;

25 22.5% of annual adjusted gross receipts in excess of

26 $25,000,000 but not exceeding $50,000,000;

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1 27.5% of annual adjusted gross receipts in excess of

2 $50,000,000 but not exceeding $75,000,000;

3 32.5% of annual adjusted gross receipts in excess of

4 $75,000,000 but not exceeding $100,000,000;

5 37.5% of annual adjusted gross receipts in excess of

6 $100,000,000 but not exceeding $150,000,000;

7 45% of annual adjusted gross receipts in excess of

8 $150,000,000 but not exceeding $200,000,000;

9 50% of annual adjusted gross receipts in excess of

10 $200,000,000.

11 The privilege tax for table games shall be at the

12 following rates:

13 15% of annual adjusted gross receipts up to and

14 including $25,000,000;

15 20% of annual adjusted gross receipts in excess of

16 $25,000,000.

17 For the imposition of the privilege tax in this subsection

18 (a-5), amounts paid pursuant to item (1) of subsection (b) of

19 Section 56 of the Illinois Horse Racing Act of 1975 shall not

20 be included in the determination of adjusted gross receipts.

21 (2) Beginning on the first day that an owners licensee

22 under paragraph (1) of subsection (e-5) of Section 7 conducts

23 gambling operations, either in a temporary facility or a

24 permanent facility, a privilege tax is imposed on persons

25 engaged in the business of conducting gambling operations

26 under paragraph (1) of subsection (e-5) of Section 7, other

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1 than licensed managers conducting riverboat gambling

2 operations on behalf of the State, based on the adjusted gross

3 receipts received by such licensee from the gambling games

4 authorized under this Act. The privilege tax for all gambling

5 games other than table games, including, but not limited to,

6 slot machines, video game of chance gambling, and electronic

7 gambling games shall be at the following rates:

8 12% of annual adjusted gross receipts up to and

9 including $25,000,000 to the State and 10.5% of annual

10 adjusted gross receipts up to and including $25,000,000 to

11 the City of Chicago;

12 16% of annual adjusted gross receipts in excess of

13 $25,000,000 but not exceeding $50,000,000 to the State and

14 14% of annual adjusted gross receipts in excess of

15 $25,000,000 but not exceeding $50,000,000 to the City of

16 Chicago;

17 20.1% of annual adjusted gross receipts in excess of

18 $50,000,000 but not exceeding $75,000,000 to the State and

19 17.4% of annual adjusted gross receipts in excess of

20 $50,000,000 but not exceeding $75,000,000 to the City of

21 Chicago;

22 21.4% of annual adjusted gross receipts in excess of

23 $75,000,000 but not exceeding $100,000,000 to the State

24 and 18.6% of annual adjusted gross receipts in excess of

25 $75,000,000 but not exceeding $100,000,000 to the City of

26 Chicago;

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1 22.7% of annual adjusted gross receipts in excess of

2 $100,000,000 but not exceeding $150,000,000 to the State

3 and 19.8% of annual adjusted gross receipts in excess of

4 $100,000,000 but not exceeding $150,000,000 to the City of

5 Chicago;

6 24.1% of annual adjusted gross receipts in excess of

7 $150,000,000 but not exceeding $225,000,000 to the State

8 and 20.9% of annual adjusted gross receipts in excess of

9 $150,000,000 but not exceeding $225,000,000 to the City of

10 Chicago;

11 26.8% of annual adjusted gross receipts in excess of

12 $225,000,000 but not exceeding $1,000,000,000 to the State

13 and 23.2% of annual adjusted gross receipts in excess of

14 $225,000,000 but not exceeding $1,000,000,000 to the City

15 of Chicago;

16 40% of annual adjusted gross receipts in excess of

17 $1,000,000,000 to the State and 34.7% of annual gross

18 receipts in excess of $1,000,000,000 to the City of

19 Chicago.

20 The privilege tax for table games shall be at the

21 following rates:

22 8.1% of annual adjusted gross receipts up to and

23 including $25,000,000 to the State and 6.9% of annual

24 adjusted gross receipts up to and including $25,000,000 to

25 the City of Chicago;

26 10.7% of annual adjusted gross receipts in excess of

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1 $25,000,000 but not exceeding $75,000,000 to the State and

2 9.3% of annual adjusted gross receipts in excess of

3 $25,000,000 but not exceeding $75,000,000 to the City of

4 Chicago;

5 11.2% of annual adjusted gross receipts in excess of

6 $75,000,000 but not exceeding $175,000,000 to the State

7 and 9.8% of annual adjusted gross receipts in excess of

8 $75,000,000 but not exceeding $175,000,000 to the City of

9 Chicago;

10 13.5% of annual adjusted gross receipts in excess of

11 $175,000,000 but not exceeding $225,000,000 to the State

12 and 11.5% of annual adjusted gross receipts in excess of

13 $175,000,000 but not exceeding $225,000,000 to the City of

14 Chicago;

15 15.1% of annual adjusted gross receipts in excess of

16 $225,000,000 but not exceeding $275,000,000 to the State

17 and 12.9% of annual adjusted gross receipts in excess of

18 $225,000,000 but not exceeding $275,000,000 to the City of

19 Chicago;

20 16.2% of annual adjusted gross receipts in excess of

21 $275,000,000 but not exceeding $375,000,000 to the State

22 and 13.8% of annual adjusted gross receipts in excess of

23 $275,000,000 but not exceeding $375,000,000 to the City of

24 Chicago;

25 18.9% of annual adjusted gross receipts in excess of

26 $375,000,000 to the State and 16.1% of annual gross

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1 receipts in excess of $375,000,000 to the City of Chicago.

2 For the imposition of the privilege tax in this subsection

3 (a-5), amounts paid pursuant to item (1) of subsection (b) of

4 Section 56 of the Illinois Horse Racing Act of 1975 shall not

5 be included in the determination of adjusted gross receipts.

6 Notwithstanding the provisions of this subsection (a-5),

7 for the first 10 years that the privilege tax is imposed under

8 this subsection (a-5), the privilege tax shall be imposed on

9 the modified annual adjusted gross receipts of a riverboat or

10 casino conducting gambling operations in the City of East St.

11 Louis, unless:

12 (1) the riverboat or casino fails to employ at least

13 450 people, except no minimum employment shall be required

14 during 2020 and 2021 or during periods that the riverboat

15 or casino is closed on orders of State officials for

16 public health emergencies or other emergencies not caused

17 by the riverboat or casino;

18 (2) the riverboat or casino fails to maintain

19 operations in a manner consistent with this Act or is not a

20 viable riverboat or casino subject to the approval of the

21 Board; or

22 (3) the owners licensee is not an entity in which

23 employees participate in an employee stock ownership plan

24 or in which the owners licensee sponsors a 401(k)

25 retirement plan and makes a matching employer contribution

26 equal to at least one-quarter of the first 12% or one-half

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1 of the first 6% of each participating employee's

2 contribution, not to exceed any limitations under federal

3 laws and regulations.

4 As used in this subsection (a-5), "modified annual

5 adjusted gross receipts" means:

6 (A) for calendar year 2020, the annual adjusted gross

7 receipts for the current year minus the difference between

8 an amount equal to the average annual adjusted gross

9 receipts from a riverboat or casino conducting gambling

10 operations in the City of East St. Louis for 2014, 2015,

11 2016, 2017, and 2018 and the annual adjusted gross

12 receipts for 2018;

13 (B) for calendar year 2021, the annual adjusted gross

14 receipts for the current year minus the difference between

15 an amount equal to the average annual adjusted gross

16 receipts from a riverboat or casino conducting gambling

17 operations in the City of East St. Louis for 2014, 2015,

18 2016, 2017, and 2018 and the annual adjusted gross

19 receipts for 2019; and

20 (C) for calendar years 2022 through 2029, the annual

21 adjusted gross receipts for the current year minus the

22 difference between an amount equal to the average annual

23 adjusted gross receipts from a riverboat or casino

24 conducting gambling operations in the City of East St.

25 Louis for 3 years preceding the current year and the

26 annual adjusted gross receipts for the immediately

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1 preceding year.

2 (a-6) From June 28, 2019 (the effective date of Public Act

3 101-31) until June 30, 2023, an owners licensee that conducted

4 gambling operations prior to January 1, 2011 shall receive a

5 dollar-for-dollar credit against the tax imposed under this

6 Section for any renovation or construction costs paid by the

7 owners licensee, but in no event shall the credit exceed

8 $2,000,000.

9 Additionally, from June 28, 2019 (the effective date of

10 Public Act 101-31) until December 31, 2024, an owners licensee

11 that (i) is located within 15 miles of the Missouri border, and

12 (ii) has at least 3 riverboats, casinos, or their equivalent

13 within a 45-mile radius, may be authorized to relocate to a new

14 location with the approval of both the unit of local

15 government designated as the home dock and the Board, so long

16 as the new location is within the same unit of local government

17 and no more than 3 miles away from its original location. Such

18 owners licensee shall receive a credit against the tax imposed

19 under this Section equal to 8% of the total project costs, as

20 approved by the Board, for any renovation or construction

21 costs paid by the owners licensee for the construction of the

22 new facility, provided that the new facility is operational by

23 July 1, 2024. In determining whether or not to approve a

24 relocation, the Board must consider the extent to which the

25 relocation will diminish the gaming revenues received by other

26 Illinois gaming facilities.

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1 (a-7) Beginning in the initial adjustment year and through

2 the final adjustment year, if the total obligation imposed

3 pursuant to either subsection (a-5) or (a-6) will result in an

4 owners licensee receiving less after-tax adjusted gross

5 receipts than it received in calendar year 2018, then the

6 total amount of privilege taxes that the owners licensee is

7 required to pay for that calendar year shall be reduced to the

8 extent necessary so that the after-tax adjusted gross receipts

9 in that calendar year equals the after-tax adjusted gross

10 receipts in calendar year 2018, but the privilege tax

11 reduction shall not exceed the annual adjustment cap. If

12 pursuant to this subsection (a-7), the total obligation

13 imposed pursuant to either subsection (a-5) or (a-6) shall be

14 reduced, then the owners licensee shall not receive a refund

15 from the State at the end of the subject calendar year but

16 instead shall be able to apply that amount as a credit against

17 any payments it owes to the State in the following calendar

18 year to satisfy its total obligation under either subsection

19 (a-5) or (a-6). The credit for the final adjustment year shall

20 occur in the calendar year following the final adjustment

21 year.

22 If an owners licensee that conducted gambling operations

23 prior to January 1, 2019 expands its riverboat or casino,

24 including, but not limited to, with respect to its gaming

25 floor, additional non-gaming amenities such as restaurants,

26 bars, and hotels and other additional facilities, and incurs

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1 construction and other costs related to such expansion from

2 June 28, 2019 (the effective date of Public Act 101-31) until

3 June 28, 2024 (the 5th anniversary of the effective date of

4 Public Act 101-31), then for each $15,000,000 spent for any

5 such construction or other costs related to expansion paid by

6 the owners licensee, the final adjustment year shall be

7 extended by one year and the annual adjustment cap shall

8 increase by 0.2% of adjusted gross receipts during each

9 calendar year until and including the final adjustment year.

10 No further modifications to the final adjustment year or

11 annual adjustment cap shall be made after $75,000,000 is

12 incurred in construction or other costs related to expansion

13 so that the final adjustment year shall not extend beyond the

14 9th calendar year after the initial adjustment year, not

15 including the initial adjustment year, and the annual

16 adjustment cap shall not exceed 4% of adjusted gross receipts

17 in a particular calendar year. Construction and other costs

18 related to expansion shall include all project related costs,

19 including, but not limited to, all hard and soft costs,

20 financing costs, on or off-site ground, road or utility work,

21 cost of gaming equipment and all other personal property,

22 initial fees assessed for each incremental gaming position,

23 and the cost of incremental land acquired for such expansion.

24 Soft costs shall include, but not be limited to, legal fees,

25 architect, engineering and design costs, other consultant

26 costs, insurance cost, permitting costs, and pre-opening costs

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1 related to the expansion, including, but not limited to, any

2 of the following: marketing, real estate taxes, personnel,

3 training, travel and out-of-pocket expenses, supply,

4 inventory, and other costs, and any other project related soft

5 costs.

6 To be eligible for the tax credits in subsection (a-6),

7 all construction contracts shall include a requirement that

8 the contractor enter into a project labor agreement with the

9 building and construction trades council with geographic

10 jurisdiction of the location of the proposed gaming facility.

11 Notwithstanding any other provision of this subsection

12 (a-7), this subsection (a-7) does not apply to an owners

13 licensee unless such owners licensee spends at least

14 $15,000,000 on construction and other costs related to its

15 expansion, excluding the initial fees assessed for each

16 incremental gaming position.

17 This subsection (a-7) does not apply to owners licensees

18 authorized pursuant to subsection (e-5) of Section 7 of this

19 Act.

20 For purposes of this subsection (a-7):

21 "Building and construction trades council" means any

22 organization representing multiple construction entities that

23 are monitoring or attentive to compliance with public or

24 workers' safety laws, wage and hour requirements, or other

25 statutory requirements or that are making or maintaining

26 collective bargaining agreements.

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1 "Initial adjustment year" means the year commencing on

2 January 1 of the calendar year immediately following the

3 earlier of the following:

4 (1) the commencement of gambling operations, either in

5 a temporary or permanent facility, with respect to the

6 owners license authorized under paragraph (1) of

7 subsection (e-5) of Section 7 of this Act; or

8 (2) June 28, 2021 (24 months after the effective date

9 of Public Act 101-31);

10 provided the initial adjustment year shall not commence

11 earlier than June 28, 2020 (12 months after the effective date

12 of Public Act 101-31).

13 "Final adjustment year" means the 2nd calendar year after

14 the initial adjustment year, not including the initial

15 adjustment year, and as may be extended further as described

16 in this subsection (a-7).

17 "Annual adjustment cap" means 3% of adjusted gross

18 receipts in a particular calendar year, and as may be

19 increased further as otherwise described in this subsection

20 (a-7).

21 (a-8) Riverboat gambling operations conducted by a

22 licensed manager on behalf of the State are not subject to the

23 tax imposed under this Section.

24 (a-9) Beginning on January 1, 2020, the calculation of

25 gross receipts or adjusted gross receipts, for the purposes of

26 this Section, for a riverboat, a casino, or an organization

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1 gaming facility shall not include the dollar amount of

2 non-cashable vouchers, coupons, and electronic promotions

3 redeemed by wagerers upon the riverboat, in the casino, or in

4 the organization gaming facility up to and including an amount

5 not to exceed 20% of a riverboat's, a casino's, or an

6 organization gaming facility's adjusted gross receipts.

7 The Illinois Gaming Board shall submit to the General

8 Assembly a comprehensive report no later than March 31, 2023

9 detailing, at a minimum, the effect of removing non-cashable

10 vouchers, coupons, and electronic promotions from this

11 calculation on net gaming revenues to the State in calendar

12 years 2020 through 2022, the increase or reduction in wagerers

13 as a result of removing non-cashable vouchers, coupons, and

14 electronic promotions from this calculation, the effect of the

15 tax rates in subsection (a-5) on net gaming revenues to this

16 State, and proposed modifications to the calculation.

17 (a-10) The taxes imposed by this Section shall be paid by

18 the licensed owner or the organization gaming licensee to the

19 Board not later than 5:00 o'clock p.m. of the day after the day

20 when the wagers were made.

21 (a-15) If the privilege tax imposed under subsection (a-3)

22 is no longer imposed pursuant to item (i) of the last paragraph

23 of subsection (a-3), then by June 15 of each year, each owners

24 licensee, other than an owners licensee that admitted

25 1,000,000 persons or fewer in calendar year 2004, must, in

26 addition to the payment of all amounts otherwise due under

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1 this Section, pay to the Board a reconciliation payment in the

2 amount, if any, by which the licensed owner's base amount

3 exceeds the amount of net privilege tax paid by the licensed

4 owner to the Board in the then current State fiscal year. A

5 licensed owner's net privilege tax obligation due for the

6 balance of the State fiscal year shall be reduced up to the

7 total of the amount paid by the licensed owner in its June 15

8 reconciliation payment. The obligation imposed by this

9 subsection (a-15) is binding on any person, firm, corporation,

10 or other entity that acquires an ownership interest in any

11 such owners license. The obligation imposed under this

12 subsection (a-15) terminates on the earliest of: (i) July 1,

13 2007, (ii) the first day after August 23, 2005 (the effective

14 date of Public Act 94-673) that riverboat gambling operations

15 are conducted pursuant to a dormant license, (iii) the first

16 day that riverboat gambling operations are conducted under the

17 authority of an owners license that is in addition to the 10

18 owners licenses initially authorized under this Act, or (iv)

19 the first day that a licensee under the Illinois Horse Racing

20 Act of 1975 conducts gaming operations with slot machines or

21 other electronic gaming devices. The Board must reduce the

22 obligation imposed under this subsection (a-15) by an amount

23 the Board deems reasonable for any of the following reasons:

24 (A) an act or acts of God, (B) an act of bioterrorism or

25 terrorism or a bioterrorism or terrorism threat that was

26 investigated by a law enforcement agency, or (C) a condition

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1 beyond the control of the owners licensee that does not result

2 from any act or omission by the owners licensee or any of its

3 agents and that poses a hazardous threat to the health and

4 safety of patrons. If an owners licensee pays an amount in

5 excess of its liability under this Section, the Board shall

6 apply the overpayment to future payments required under this

7 Section.

8 For purposes of this subsection (a-15):

9 "Act of God" means an incident caused by the operation of

10 an extraordinary force that cannot be foreseen, that cannot be

11 avoided by the exercise of due care, and for which no person

12 can be held liable.

13 "Base amount" means the following:

14 For a riverboat in Alton, $31,000,000.

15 For a riverboat in East Peoria, $43,000,000.

16 For the Empress riverboat in Joliet, $86,000,000.

17 For a riverboat in Metropolis, $45,000,000.

18 For the Harrah's riverboat in Joliet, $114,000,000.

19 For a riverboat in Aurora, $86,000,000.

20 For a riverboat in East St. Louis, $48,500,000.

21 For a riverboat in Elgin, $198,000,000.

22 "Dormant license" has the meaning ascribed to it in

23 subsection (a-3).

24 "Net privilege tax" means all privilege taxes paid by a

25 licensed owner to the Board under this Section, less all

26 payments made from the State Gaming Fund pursuant to

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1 subsection (b) of this Section.

2 The changes made to this subsection (a-15) by Public Act

3 94-839 are intended to restate and clarify the intent of

4 Public Act 94-673 with respect to the amount of the payments

5 required to be made under this subsection by an owners

6 licensee to the Board.

7 (b) From the tax revenue from riverboat or casino gambling

8 deposited in the State Gaming Fund under this Section, an

9 amount equal to 5% of adjusted gross receipts generated by a

10 riverboat or a casino, other than a riverboat or casino

11 designated in paragraph (1), (3), or (4) of subsection (e-5)

12 of Section 7, shall be paid monthly, subject to appropriation

13 by the General Assembly, to the unit of local government in

14 which the casino is located or that is designated as the home

15 dock of the riverboat. Notwithstanding anything to the

16 contrary, beginning on the first day that an owners licensee

17 under paragraph (1), (2), (3), (4), (5), or (6) of subsection

18 (e-5) of Section 7 conducts gambling operations, either in a

19 temporary facility or a permanent facility, and for 2 years

20 thereafter, a unit of local government designated as the home

21 dock of a riverboat whose license was issued before January 1,

22 2019, other than a riverboat conducting gambling operations in

23 the City of East St. Louis, shall not receive less under this

24 subsection (b) than the amount the unit of local government

25 received under this subsection (b) in calendar year 2018.

26 Notwithstanding anything to the contrary and because the City

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1 of East St. Louis is a financially distressed city, beginning

2 on the first day that an owners licensee under paragraph (1),

3 (2), (3), (4), (5), or (6) of subsection (e-5) of Section 7

4 conducts gambling operations, either in a temporary facility

5 or a permanent facility, and for 10 years thereafter, a unit of

6 local government designated as the home dock of a riverboat

7 conducting gambling operations in the City of East St. Louis

8 shall not receive less under this subsection (b) than the

9 amount the unit of local government received under this

10 subsection (b) in calendar year 2018.

11 From the tax revenue deposited in the State Gaming Fund

12 pursuant to riverboat or casino gambling operations conducted

13 by a licensed manager on behalf of the State, an amount equal

14 to 5% of adjusted gross receipts generated pursuant to those

15 riverboat or casino gambling operations shall be paid monthly,

16 subject to appropriation by the General Assembly, to the unit

17 of local government that is designated as the home dock of the

18 riverboat upon which those riverboat gambling operations are

19 conducted or in which the casino is located.

20 From the tax revenue from riverboat or casino gambling

21 deposited in the State Gaming Fund under this Section, an

22 amount equal to 5% of the adjusted gross receipts generated by

23 a riverboat designated in paragraph (3) of subsection (e-5) of

24 Section 7 shall be divided and remitted monthly, subject to

25 appropriation, as follows: 70% to Waukegan, 10% to Park City,

26 15% to North Chicago, and 5% to Lake County.

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1 From the tax revenue from riverboat or casino gambling

2 deposited in the State Gaming Fund under this Section, an

3 amount equal to 5% of the adjusted gross receipts generated by

4 a riverboat designated in paragraph (4) of subsection (e-5) of

5 Section 7 shall be remitted monthly, subject to appropriation,

6 as follows: 70% to the City of Rockford, 5% to the City of

7 Loves Park, 5% to the Village of Machesney, and 20% to

8 Winnebago County.

9 From the tax revenue from riverboat or casino gambling

10 deposited in the State Gaming Fund under this Section, an

11 amount equal to 5% of the adjusted gross receipts generated by

12 a riverboat designated in paragraph (5) of subsection (e-5) of

13 Section 7 shall be remitted monthly, subject to appropriation,

14 as follows: 2% to the unit of local government in which the

15 riverboat or casino is located, and 3% shall be distributed:

16 (A) in accordance with a regional capital development plan

17 entered into by the following communities: Village of Beecher,

18 City of Blue Island, Village of Burnham, City of Calumet City,

19 Village of Calumet Park, City of Chicago Heights, City of

20 Country Club Hills, Village of Crestwood, Village of Crete,

21 Village of Dixmoor, Village of Dolton, Village of East Hazel

22 Crest, Village of Flossmoor, Village of Ford Heights, Village

23 of Glenwood, City of Harvey, Village of Hazel Crest, Village

24 of Homewood, Village of Lansing, Village of Lynwood, City of

25 Markham, Village of Matteson, Village of Midlothian, Village

26 of Monee, City of Oak Forest, Village of Olympia Fields,

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1 Village of Orland Hills, Village of Orland Park, City of Palos

2 Heights, Village of Park Forest, Village of Phoenix, Village

3 of Posen, Village of Richton Park, Village of Riverdale,

4 Village of Robbins, Village of Sauk Village, Village of South

5 Chicago Heights, Village of South Holland, Village of Steger,

6 Village of Thornton, Village of Tinley Park, Village of

7 University Park, and Village of Worth; or (B) if no regional

8 capital development plan exists, equally among the communities

9 listed in item (A) to be used for capital expenditures or

10 public pension payments, or both.

11 Units of local government may refund any portion of the

12 payment that they receive pursuant to this subsection (b) to

13 the riverboat or casino.

14 (b-4) Beginning on the first day a ~~the~~ licensee under

15 ~~paragraph (5) of~~ subsection (e-5) of Section 7 conducts

16 gambling operations, either in a temporary facility or a

17 permanent facility, and ending on July 31, 2042, from the tax

18 revenue deposited in the State Gaming Fund under this Section,

19 $5,000,000 shall be paid annually, subject to appropriation,

20 to the host municipality of that owners licensee of a license

21 issued or re-issued pursuant to Section 7.1 of this Act before

22 January 1, 2012. Payments received by the host municipality

23 pursuant to this subsection (b-4) may not be shared with any

24 other unit of local government.

25 (b-5) Beginning on June 28, 2019 (the effective date of

26 Public Act 101-31), from the tax revenue deposited in the

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1 State Gaming Fund under this Section, an amount equal to 3% of

2 adjusted gross receipts generated by each organization gaming

3 facility located outside Madison County shall be paid monthly,

4 subject to appropriation by the General Assembly, to a

5 municipality other than the Village of Stickney in which each

6 organization gaming facility is located or, if the

7 organization gaming facility is not located within a

8 municipality, to the county in which the organization gaming

9 facility is located, except as otherwise provided in this

10 Section. From the tax revenue deposited in the State Gaming

11 Fund under this Section, an amount equal to 3% of adjusted

12 gross receipts generated by an organization gaming facility

13 located in the Village of Stickney shall be paid monthly,

14 subject to appropriation by the General Assembly, as follows:

15 25% to the Village of Stickney, 5% to the City of Berwyn, 50%

16 to the Town of Cicero, and 20% to the Stickney Public Health

17 District.

18 From the tax revenue deposited in the State Gaming Fund

19 under this Section, an amount equal to 5% of adjusted gross

20 receipts generated by an organization gaming facility located

21 in the City of Collinsville shall be paid monthly, subject to

22 appropriation by the General Assembly, as follows: 30% to the

23 City of Alton, 30% to the City of East St. Louis, and 40% to

24 the City of Collinsville.

25 Municipalities and counties may refund any portion of the

26 payment that they receive pursuant to this subsection (b-5) to

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1 the organization gaming facility.

2 (b-6) Beginning on June 28, 2019 (the effective date of

3 Public Act 101-31), from the tax revenue deposited in the

4 State Gaming Fund under this Section, an amount equal to 2% of

5 adjusted gross receipts generated by an organization gaming

6 facility located outside Madison County shall be paid monthly,

7 subject to appropriation by the General Assembly, to the

8 county in which the organization gaming facility is located

9 for the purposes of its criminal justice system or health care

10 system.

11 Counties may refund any portion of the payment that they

12 receive pursuant to this subsection (b-6) to the organization

13 gaming facility.

14 (b-7) From the tax revenue from the organization gaming

15 licensee located in one of the following townships of Cook

16 County: Bloom, Bremen, Calumet, Orland, Rich, Thornton, or

17 Worth, an amount equal to 5% of the adjusted gross receipts

18 generated by that organization gaming licensee shall be

19 remitted monthly, subject to appropriation, as follows: 2% to

20 the unit of local government in which the organization gaming

21 licensee is located, and 3% shall be distributed: (A) in

22 accordance with a regional capital development plan entered

23 into by the following communities: Village of Beecher, City of

24 Blue Island, Village of Burnham, City of Calumet City, Village

25 of Calumet Park, City of Chicago Heights, City of Country Club

26 Hills, Village of Crestwood, Village of Crete, Village of

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1 Dixmoor, Village of Dolton, Village of East Hazel Crest,

2 Village of Flossmoor, Village of Ford Heights, Village of

3 Glenwood, City of Harvey, Village of Hazel Crest, Village of

4 Homewood, Village of Lansing, Village of Lynwood, City of

5 Markham, Village of Matteson, Village of Midlothian, Village

6 of Monee, City of Oak Forest, Village of Olympia Fields,

7 Village of Orland Hills, Village of Orland Park, City of Palos

8 Heights, Village of Park Forest, Village of Phoenix, Village

9 of Posen, Village of Richton Park, Village of Riverdale,

10 Village of Robbins, Village of Sauk Village, Village of South

11 Chicago Heights, Village of South Holland, Village of Steger,

12 Village of Thornton, Village of Tinley Park, Village of

13 University Park, and Village of Worth; or (B) if no regional

14 capital development plan exists, equally among the communities

15 listed in item (A) to be used for capital expenditures or

16 public pension payments, or both.

17 (b-8) In lieu of the payments under subsection (b) of this

18 Section, from the tax revenue deposited in the State Gaming

19 Fund pursuant to riverboat or casino gambling operations

20 conducted by an owners licensee under paragraph (1) of

21 subsection (e-5) of Section 7, an amount equal to the tax

22 revenue generated from the privilege tax imposed by paragraph

23 (2) of subsection (a-5) that is to be paid to the City of

24 Chicago shall be paid monthly, subject to appropriation by the

25 General Assembly, as follows: (1) an amount equal to 0.5% of

26 the annual adjusted gross receipts generated by the owners

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1 licensee under paragraph (1) of subsection (e-5) of Section 7

2 to the home rule county in which the owners licensee is located

3 for the purpose of enhancing the county's criminal justice

4 system; and (2) the balance to the City of Chicago and shall be

5 expended or obligated by the City of Chicago for pension

6 payments in accordance with Public Act 99-506.

7 (c) Appropriations, as approved by the General Assembly,

8 may be made from the State Gaming Fund to the Board (i) for the

9 administration and enforcement of this Act and the Video

10 Gaming Act, (ii) for distribution to the Illinois State Police

11 and to the Department of Revenue for the enforcement of this

12 Act and the Video Gaming Act, and (iii) to the Department of

13 Human Services for the administration of programs to treat

14 problem gambling, including problem gambling from sports

15 wagering. The Board's annual appropriations request must

16 separately state its funding needs for the regulation of

17 gaming authorized under Section 7.7, riverboat gaming, casino

18 gaming, video gaming, and sports wagering.

19 (c-2) An amount equal to 2% of the adjusted gross receipts

20 generated by an organization gaming facility located within a

21 home rule county with a population of over 3,000,000

22 inhabitants shall be paid, subject to appropriation from the

23 General Assembly, from the State Gaming Fund to the home rule

24 county in which the organization gaming licensee is located

25 for the purpose of enhancing the county's criminal justice

26 system.

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1 (c-3) Appropriations, as approved by the General Assembly,

2 may be made from the tax revenue deposited into the State

3 Gaming Fund from organization gaming licensees pursuant to

4 this Section for the administration and enforcement of this

5 Act.

6 (c-4) After payments required under subsections (b),

7 (b-5), (b-6), (b-7), (c), (c-2), and (c-3) have been made from

8 the tax revenue from organization gaming licensees deposited

9 into the State Gaming Fund under this Section, all remaining

10 amounts from organization gaming licensees shall be

11 transferred into the Capital Projects Fund.

12 (c-5) (Blank).

13 (c-10) Each year the General Assembly shall appropriate

14 from the General Revenue Fund to the Education Assistance Fund

15 an amount equal to the amount paid into the Horse Racing Equity

16 Fund pursuant to subsection (c-5) in the prior calendar year.

17 (c-15) After the payments required under subsections (b),

18 (c), and (c-5) have been made, an amount equal to 2% of the

19 adjusted gross receipts of (1) an owners licensee that

20 relocates pursuant to Section 11.2, (2) an owners licensee

21 conducting riverboat gambling operations pursuant to an owners

22 license that is initially issued after June 25, 1999, or (3)

23 the first riverboat gambling operations conducted by a

24 licensed manager on behalf of the State under Section 7.3,

25 whichever comes first, shall be paid, subject to appropriation

26 from the General Assembly, from the State Gaming Fund to each

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1 home rule county with a population of over 3,000,000

2 inhabitants for the purpose of enhancing the county's criminal

3 justice system.

4 (c-20) Each year the General Assembly shall appropriate

5 from the General Revenue Fund to the Education Assistance Fund

6 an amount equal to the amount paid to each home rule county

7 with a population of over 3,000,000 inhabitants pursuant to

8 subsection (c-15) in the prior calendar year.

9 (c-21) After the payments required under subsections (b),

10 (b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), and (c-4) have

11 been made, an amount equal to 0.5% of the adjusted gross

12 receipts generated by the owners licensee under paragraph (1)

13 of subsection (e-5) of Section 7 shall be paid monthly,

14 subject to appropriation from the General Assembly, from the

15 State Gaming Fund to the home rule county in which the owners

16 licensee is located for the purpose of enhancing the county's

17 criminal justice system.

18 (c-22) After the payments required under subsections (b),

19 (b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), (c-4), and

20 (c-21) have been made, an amount equal to 2% of the adjusted

21 gross receipts generated by the owners licensee under

22 paragraph (5) of subsection (e-5) of Section 7 shall be paid,

23 subject to appropriation from the General Assembly, from the

24 State Gaming Fund to the home rule county in which the owners

25 licensee is located for the purpose of enhancing the county's

26 criminal justice system.

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1 (c-25) From July 1, 2013 and each July 1 thereafter

2 through July 1, 2019, $1,600,000 shall be transferred from the

3 State Gaming Fund to the Chicago State University Education

4 Improvement Fund.

5 On July 1, 2020 and each July 1 thereafter, $3,000,000

6 shall be transferred from the State Gaming Fund to the Chicago

7 State University Education Improvement Fund.

8 (c-30) On July 1, 2013 or as soon as possible thereafter,

9 $92,000,000 shall be transferred from the State Gaming Fund to

10 the School Infrastructure Fund and $23,000,000 shall be

11 transferred from the State Gaming Fund to the Horse Racing

12 Equity Fund.

13 (c-35) Beginning on July 1, 2013, in addition to any

14 amount transferred under subsection (c-30) of this Section,

15 $5,530,000 shall be transferred monthly from the State Gaming

16 Fund to the School Infrastructure Fund.

17 (d) From time to time, through June 30, 2021, the Board

18 shall transfer the remainder of the funds generated by this

19 Act into the Education Assistance Fund.

20 (d-5) Beginning on July 1, 2021, on the last day of each

21 month, or as soon thereafter as possible, after all the

22 required expenditures, distributions, and transfers have been

23 made from the State Gaming Fund for the month pursuant to

24 subsections (b) through (c-35), at the direction of the Board,

25 the Comptroller shall direct and the Treasurer shall transfer

26 $22,500,000, along with any deficiencies in such amounts from

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1 prior months in the same fiscal year, from the State Gaming

2 Fund to the Education Assistance Fund; then, at the direction

3 of the Board, the Comptroller shall direct and the Treasurer

4 shall transfer the remainder of the funds generated by this

5 Act, if any, from the State Gaming Fund to the Capital Projects

6 Fund.

7 (e) Nothing in this Act shall prohibit the unit of local

8 government designated as the home dock of the riverboat from

9 entering into agreements with other units of local government

10 in this State or in other states to share its portion of the

11 tax revenue.

12 (f) To the extent practicable, the Board shall administer

13 and collect the wagering taxes imposed by this Section in a

14 manner consistent with the provisions of Sections 4, 5, 5a,

15 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of

16 the Retailers' Occupation Tax Act and Section 3-7 of the

17 Uniform Penalty and Interest Act.

18 (Source: P.A. 101-31, Article 25, Section 25-910, eff.

19 6-28-19; 101-31, Article 35, Section 35-55, eff. 6-28-19;

20 101-648, eff. 6-30-20; 102-16, eff. 6-17-21; 102-538, eff.

21 8-20-21; 102-689, eff. 12-17-21; 102-699, eff. 4-19-22.)

22 Section 99. Effective date. This Act takes effect upon

23 becoming law.