Illinois Governor Signs Chicago Casino Tax Bill

Illinois Governor signs Chicago casino tax bill
Chicago casino tax bill signed

Illinois Governor J.B Pritzer has signed a bill that reduces taxes on gross gaming revenue (GGR) of an integrated casino resort in downtown Chicago. The Illinois General Assembly passed the senate bill in May, during their special session.

The bill will provide a lower tax registry for the casino.  Also, the city and state will take 22.5 percent to 54.7 percent of the win generated slot machine terminals. Additionally, the rate depends on the casinos full GGR. also, the state and the city will take 15 percent and 35 percent on table games.

Chicago Mayor Lori Lightfoot said the integrated casino would create a dynamic new entertainment district in the city.

Lightfoot also said the casino would help make the financial future of the city stronger.

Last year, Lightfoot appealed state lawmakers to reduce the tax obligations imposed on the Windy City casino. Additionally, Lightfoot appealed during the original expansion of commercial gambling that was passed last year. The bill also authorised smaller brick and motor commercial casinos in five Chicago suburbs. The sites are reserved for Waukegan, Rockford, South Suburbs, William County and Danville.

 The Cost of Doing Business – Chicago Casino

After the $45 billion Rebuild Illinois infrastructure pan, the 2019 gaming expansion gained support among the state lawmakers. There was a feasibility study that was conducted and it concluded that the downtown Chicago casino would be taxed at an effective rate of 72 percent. Additionally, the rate is much higher than what the suburban casinos would have to pay because of the 33.3 privilege tax for the combined resort. Las Vegas Union Gaming was then brought in to assess whether the tax would render the licence unappealing to potential casino operators.

In its conclusion, the Union said “To the extent, a casino operator could pare down expenses and realize modest revenue and profits from non-gaming amenities. Total

enterprise profit margin would, in a best-case scenario, likely equate to a few pennies on the dollar”.

In addi0tion to the extreme tax, the casino that will win, will have to pay $15 million licencing fee upfront. Additionally, the state will also require the casino to pay a onetime $30 000 per gaming position.  Also, the cost will reach up to $120 million because the state is allowed up to 4000 positions.

Conclusion

Chicago casino is now more attractive because of the SB516.  This does not mean that many casino operators will try and get 5the gaming licence. Also, this is because many operators will want to see where the integrated resort will be approved to be built.

FAQs

Does Chicago have casinos?

Chicago lawmakers have approved 4000 gambling positions. This means it is in the process of becoming one of the biggest gambling cities.

What are the casinos that are found in Chicago?

  1. Boomtown Casino Bossier City
  2. Ameristar Council Bluffs.
  3. Boomtown Casino New Orleans
  4. Ameristar Casino & Hotel Vicksburg.
  5. L’Auberge Casino Hotel Baton Rouge.
  6. L’Auberge Casino Resort Lake Charles.
  7. Ameristar Black Hawk.
  8. Ameristar Eat Chicago