103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3172

 

Introduced 2/6/2024, by Sen. Donald P. DeWitte

 

SYNOPSIS AS INTRODUCED:
 
230 ILCS 40/27
230 ILCS 40/60

    Amends the Video Gaming Act. Provides that a municipality with a population that is greater than or equal to 1,000,000 may not pass an ordinance prohibiting video gaming within the corporate limits of the municipality. Provides that, in such a municipality, video gaming may be prohibited only by referendum. Preempts home rule powers. Provides that a tax of 34% is imposed on net terminal income in such a municipality and shall be collected by the Illinois Gaming Board, of which 83% shall be distributed to the Regional Transportation Authority and 17% shall be distributed to the municipality in which the terminal is located. Makes conforming changes.


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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,
3represented in the General Assembly:
 
4    Section 5. The Video Gaming Act is amended by changing
5Sections 27 and 60 and by adding Section 63 as follows:
 
6    (230 ILCS 40/27)
7    Sec. 27. Prohibition of video gaming by political
8subdivision.
9    (a) A municipality, other than a municipality with a
10population that is greater than or equal to 1,000,000, may
11pass an ordinance prohibiting video gaming within the
12corporate limits of the municipality. A county board may, for
13the unincorporated area of the county, pass an ordinance
14prohibiting video gaming within the unincorporated area of the
15county.
16    (b) On and after July 1, 2022, a qualified fraternal
17organization that derives its charter from a national
18fraternal organization and a qualified veterans organization
19that derives its charter from a national veterans organization
20shall be eligible to apply to the Board for a license allowing
21video gaming as a licensed fraternal establishment or a
22licensed veterans establishment if the proposed fraternal
23establishment or veterans establishment is located in:

 

 

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1        (1) a municipality having a population of not more
2    than 1,000,000 that has enacted an ordinance prohibiting
3    video gaming within the corporate limits; or
4        (2) a county having a population of not more than
5    1,000,000 that has enacted an ordinance prohibiting video
6    gaming within the unincorporated area of the county.
7    If the license is granted by the Board, then the licensed
8fraternal establishment or licensed veterans establishment may
9operate video gaming terminals pursuant to this Act.
10    (c) A municipality with a population that is greater than
11or equal to 1,000,000 may not pass an ordinance prohibiting
12video gaming within the corporate limits of the municipality.
13In such a municipality, video gaming may be prohibited only by
14referendum under Section 70. A home rule municipality with a
15population that is greater than or equal to 1,000,000 may not
16regulate video gaming within the corporate limits of the
17municipality in a manner that is inconsistent with this
18subsection (c). This subsection (c) is a limitation under
19subsection (i) of Section 6 of Article VII of the Illinois
20Constitution on the concurrent exercise by home rule units of
21powers and functions exercised by the State.
22(Source: P.A. 102-689, eff. 12-17-21.)
 
23    (230 ILCS 40/60)
24    Sec. 60. Imposition and distribution of tax.
25    (a) Except in a municipality with a population that is

 

 

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1greater than or equal to 1,000,000, a A tax of 30% is imposed
2on net terminal income and shall be collected by the Board.
3    Of the tax collected under this subsection (a),
4five-sixths shall be deposited into the Capital Projects Fund
5and one-sixth shall be deposited into the Local Government
6Video Gaming Distributive Fund.
7    (b) Except in a municipality with a population that is
8greater than or equal to 1,000,000, Beginning on July 1, 2019,
9an additional tax of 3% is imposed on net terminal income and
10shall be collected by the Board.
11    Except in a municipality with a population that is greater
12than or equal to 1,000,000, Beginning on July 1, 2020, an
13additional tax of 1% is imposed on net terminal income and
14shall be collected by the Board.
15    The tax collected under this subsection (b) shall be
16deposited into the Capital Projects Fund.
17    (b-5) In a municipality with a population that is greater
18than or equal to 1,000,000, a tax of 34% is imposed on net
19terminal income and shall be collected by the Board. Of the tax
20collected under this subsection, 83% shall be distributed to
21the Regional Transportation Authority and 17% shall be
22distributed to the municipality in which the terminal is
23located.
24    (c) Revenues generated from the play of video gaming
25terminals shall be deposited by the terminal operator, who is
26responsible for tax payments, in a specially created, separate

 

 

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1bank account maintained by the video gaming terminal operator
2to allow for electronic fund transfers of moneys for tax
3payment.
4    (d) Each licensed establishment, licensed truck stop
5establishment, licensed large truck stop establishment,
6licensed fraternal establishment, and licensed veterans
7establishment shall maintain an adequate video gaming fund,
8with the amount to be determined by the Board.
9    (e) The State's percentage of net terminal income shall be
10reported and remitted to the Board within 15 days after the
1115th day of each month and within 15 days after the end of each
12month by the video terminal operator. A video terminal
13operator who falsely reports or fails to report the amount due
14required by this Section is guilty of a Class 4 felony and is
15subject to termination of his or her license by the Board. Each
16video terminal operator shall keep a record of net terminal
17income in such form as the Board may require. All payments not
18remitted when due shall be paid together with a penalty
19assessment on the unpaid balance at a rate of 1.5% per month.
20(Source: P.A. 101-31, eff. 6-28-19.)