VIDEO GAMING-PROHIBIT-TAXATION
The bill also imposes a significant tax of 34% on net terminal income from video gaming in these larger municipalities. This tax would be collected by the Illinois Gaming Board, with the revenues designated for specific allocations, including 83% to the Regional Transportation Authority (RTA) and 17% to the municipality itself where the gaming terminal is located. This financial structure is intended to support public transportation infrastructure while also providing a revenue source to municipalities directly benefitting from video gaming.
SB1342 amends the Video Gaming Act in Illinois by establishing restrictions on municipalities with populations of 1,000,000 or more regarding the prohibition of video gaming. Under this bill, such municipalities cannot pass ordinances banning video gaming; instead, they may only prohibit it through a public referendum. This change aims to standardize video gaming operations in larger cities and prevent selective bans that may arise from local governance decisions.
Overall, SB1342 promotes an environment for video gaming in larger municipalities while establishing a new tax regime that leverages gaming revenues for essential regional services. Its effectiveness will largely depend on public acceptance and the outcomes of referenda in these municipalities. As the bill progresses, it could reshape the landscape of video gaming in urban Illinois and trigger broader discussions on local discretion and state authority.
One notable aspect of SB1342 is its preemption of home rule authority in large municipalities. Critics argue that this undermines local governance and residents' ability to shape policies that address their specific community needs related to gaming and its effects. Proponents of the bill, however, defend it by emphasizing the importance of consistent regulations across populous areas to avoid fragmentation and confusion over gaming laws.