Illinois OKs VLTs; racing excluded

The details are just now emerging about the new Illinois budget, which legalizes video lottery terminals at bars, restaurants and truckstops, but specifically prohibits them at racetracks.

 

Facing a $9 billion budget deficit, on Monday, July 13, Illinois Gov. Pat Quinn signed HB 255, a hybrid bill that includes the Video Gaming Act, which put video gaming machines under the direction of the Illinois Lottery. The additional gaming is estimated to bring in $375 million to the state.

 

According to reports, there will be regulations enacted to license video lottery terminals. There are an estimated 21,000 bars and restaurants that serve liquor in the state. However, off-track betting locations which serve food and liquor will not be permitted to hold a VLT license.

 

Other details: Cash winnings on a single play will be capped at $500 with a $2 bet maximum. VLT revenues will be taxed at 30 percent, with operators collecting 35 percent of adjusted gross receipts and licensed bars and restaurants receiving 35 percent. There will be a nonrefundable application fee is $5,000 for VLT manufacturers, distributors and operators, and $2,500 for components suppliers. Once a license is granted, each licensee must also pay an annual renewal fee. Annual fees are $10,000 for manufacturers and distributors, $5,000 for operators and $2,000 for component suppliers.

 

According to a racing industry source, video poker machines have been illegally operating in the state for years, and government officials saw the new law a way to tax those operations.