SB1342 104TH GENERAL ASSEMBLY

LRB104 05603 LNS 15633 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB1342

Introduced 1/28/2025, 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.

A BILL FOR

AN ACT concerning gaming.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Video Gaming Act is amended by changing Sections 27 and 60 and by adding Section 63 as follows:

(230 ILCS 40/27)

Sec. 27. Prohibition of video gaming by political subdivision.

(a) A municipality, other than a municipality with a population that is greater than or equal to 1,000,000, may pass an ordinance prohibiting video gaming within the corporate limits of the municipality. A county board may, for the unincorporated area of the county, pass an ordinance prohibiting video gaming within the unincorporated area of the county.

(b) On and after July 1, 2022, a qualified fraternal organization that derives its charter from a national fraternal organization and a qualified veterans organization that derives its charter from a national veterans organization shall be eligible to apply to the Board for a license allowing video gaming as a licensed fraternal establishment or a licensed veterans establishment if the proposed fraternal establishment or veterans establishment is located in:

(1) a municipality having a population of not more than 1,000,000 that has enacted an ordinance prohibiting video gaming within the corporate limits; or

(2) a county having a population of not more than 1,000,000 that has enacted an ordinance prohibiting video gaming within the unincorporated area of the county.

If the license is granted by the Board, then the licensed fraternal establishment or licensed veterans establishment may operate video gaming terminals pursuant to this Act.

(c) 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. In such a municipality, video gaming may be prohibited only by referendum under Section 70. A home rule municipality with a population that is greater than or equal to 1,000,000 may not regulate video gaming within the corporate limits of the municipality in a manner that is inconsistent with this subsection (c). This subsection (c) is a limitation under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by home rule units of powers and functions exercised by the State.

(Source: P.A. 102-689, eff. 12-17-21.)

(230 ILCS 40/60)

Sec. 60. Imposition and distribution of tax.

(a) Except in a municipality with a population that is greater than or equal to 1,000,000, a A tax of 30% is imposed on net terminal income and shall be collected by the Board.

Of the tax collected under this subsection (a), five-sixths shall be deposited into the Capital Projects Fund and one-sixth shall be deposited into the Local Government Video Gaming Distributive Fund.

(b) Except in a municipality with a population that is greater than or equal to 1,000,000, Beginning on July 1, 2019, an additional tax of 3% is imposed on net terminal income and shall be collected by the Board.

Except in a municipality with a population that is greater than or equal to 1,000,000, Beginning on July 1, 2020, an additional tax of 1% is imposed on net terminal income and shall be collected by the Board.

Beginning on July 1, 2024, an additional tax of 1% is imposed on net terminal income and shall be collected by the Board.

The tax collected under this subsection (b) shall be deposited into the Capital Projects Fund.

(b-5) In a municipality with a population that is greater than or equal to 1,000,000, a tax of 34% is imposed on net terminal income and shall be collected by the Board. Of the tax collected under this subsection, 83% shall be distributed to the Regional Transportation Authority and 17% shall be distributed to the municipality in which the terminal is located.

(c) Revenues generated from the play of video gaming terminals shall be deposited by the terminal operator, who is responsible for tax payments, in a specially created, separate bank account maintained by the video gaming terminal operator to allow for electronic fund transfers of moneys for tax payment.

(d) Each licensed establishment, licensed truck stop establishment, licensed large truck stop establishment, licensed fraternal establishment, and licensed veterans establishment shall maintain an adequate video gaming fund, with the amount to be determined by the Board.

(e) The State's percentage of net terminal income shall be reported and remitted to the Board within 15 days after the 15th day of each month and within 15 days after the end of each month by the video terminal operator. A video terminal operator who falsely reports or fails to report the amount due required by this Section is guilty of a Class 4 felony and is subject to termination of his or her license by the Board. Each video terminal operator shall keep a record of net terminal income in such form as the Board may require. All payments not remitted when due shall be paid together with a penalty assessment on the unpaid balance at a rate of 1.5% per month.

(Source: P.A. 103-592, eff. 6-7-24.)