101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3742

 

Introduced 2/14/2020, by Sen. Cristina Castro

 

SYNOPSIS AS INTRODUCED:
 
230 ILCS 10/13  from Ch. 120, par. 2413

    Amends the Illinois Gambling Act. Provides that a change in rates of the privilege tax imposed on casinos and riverboats begins on January 1, 2020 (rather than the first day new casino begin conducting gambling operations). Requires the Illinois Gaming Board to calculate the amount of privilege taxes collected from each owners licensee from January 1, 2020 until the effective date of the amendatory Act under the current tax rate and the amount of privilege taxes owed under the new tax rate from January 1, 2020 until the effective date of the amendatory Act and to calculate the difference between the rates and credit any overpaid amount of privilege taxes against the future privilege tax obligations of the owners license. Effective immediately.


LRB101 20142 SMS 69679 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3742LRB101 20142 SMS 69679 b

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 Illinois Gambling Act is amended by changing
5Section 13 as follows:
 
6    (230 ILCS 10/13)  (from Ch. 120, par. 2413)
7    Sec. 13. Wagering tax; rate; distribution.
8    (a) Until January 1, 1998, a tax is imposed on the adjusted
9gross receipts received from gambling games authorized under
10this Act at the rate of 20%.
11    (a-1) From January 1, 1998 until July 1, 2002, a privilege
12tax is imposed on persons engaged in the business of conducting
13riverboat gambling operations, based on the adjusted gross
14receipts received by a licensed owner from gambling games
15authorized under this Act at the following rates:
16        15% of annual adjusted gross receipts up to and
17    including $25,000,000;
18        20% of annual adjusted gross receipts in excess of
19    $25,000,000 but not exceeding $50,000,000;
20        25% of annual adjusted gross receipts in excess of
21    $50,000,000 but not exceeding $75,000,000;
22        30% of annual adjusted gross receipts in excess of
23    $75,000,000 but not exceeding $100,000,000;

 

 

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1        35% of annual adjusted gross receipts in excess of
2    $100,000,000.
3    (a-2) From July 1, 2002 until July 1, 2003, a privilege tax
4is imposed on persons engaged in the business of conducting
5riverboat gambling operations, other than licensed managers
6conducting riverboat gambling operations on behalf of the
7State, based on the adjusted gross receipts received by a
8licensed owner from gambling games authorized under this Act at
9the following rates:
10        15% of annual adjusted gross receipts up to and
11    including $25,000,000;
12        22.5% of annual adjusted gross receipts in excess of
13    $25,000,000 but not exceeding $50,000,000;
14        27.5% of annual adjusted gross receipts in excess of
15    $50,000,000 but not exceeding $75,000,000;
16        32.5% of annual adjusted gross receipts in excess of
17    $75,000,000 but not exceeding $100,000,000;
18        37.5% of annual adjusted gross receipts in excess of
19    $100,000,000 but not exceeding $150,000,000;
20        45% of annual adjusted gross receipts in excess of
21    $150,000,000 but not exceeding $200,000,000;
22        50% of annual adjusted gross receipts in excess of
23    $200,000,000.
24    (a-3) Beginning July 1, 2003, a privilege tax is imposed on
25persons engaged in the business of conducting riverboat
26gambling operations, other than licensed managers conducting

 

 

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1riverboat gambling operations on behalf of the State, based on
2the adjusted gross receipts received by a licensed owner from
3gambling games authorized under this Act at the following
4rates:
5        15% of annual adjusted gross receipts up to and
6    including $25,000,000;
7        27.5% of annual adjusted gross receipts in excess of
8    $25,000,000 but not exceeding $37,500,000;
9        32.5% of annual adjusted gross receipts in excess of
10    $37,500,000 but not exceeding $50,000,000;
11        37.5% of annual adjusted gross receipts in excess of
12    $50,000,000 but not exceeding $75,000,000;
13        45% of annual adjusted gross receipts in excess of
14    $75,000,000 but not exceeding $100,000,000;
15        50% of annual adjusted gross receipts in excess of
16    $100,000,000 but not exceeding $250,000,000;
17        70% of annual adjusted gross receipts in excess of
18    $250,000,000.
19    An amount equal to the amount of wagering taxes collected
20under this subsection (a-3) that are in addition to the amount
21of wagering taxes that would have been collected if the
22wagering tax rates under subsection (a-2) were in effect shall
23be paid into the Common School Fund.
24    The privilege tax imposed under this subsection (a-3) shall
25no longer be imposed beginning on the earlier of (i) July 1,
262005; (ii) the first date after June 20, 2003 that riverboat

 

 

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1gambling operations are conducted pursuant to a dormant
2license; or (iii) the first day that riverboat gambling
3operations are conducted under the authority of an owners
4license that is in addition to the 10 owners licenses initially
5authorized under this Act. For the purposes of this subsection
6(a-3), the term "dormant license" means an owners license that
7is authorized by this Act under which no riverboat gambling
8operations are being conducted on June 20, 2003.
9    (a-4) Beginning on the first day on which the tax imposed
10under subsection (a-3) is no longer imposed and ending upon the
11imposition of the privilege tax under subsection (a-5) of this
12Section, a privilege tax is imposed on persons engaged in the
13business of conducting gambling operations, other than
14licensed managers conducting riverboat gambling operations on
15behalf of the State, based on the adjusted gross receipts
16received by a licensed owner from gambling games authorized
17under this Act at the following rates:
18        15% of annual adjusted gross receipts up to and
19    including $25,000,000;
20        22.5% of annual adjusted gross receipts in excess of
21    $25,000,000 but not exceeding $50,000,000;
22        27.5% of annual adjusted gross receipts in excess of
23    $50,000,000 but not exceeding $75,000,000;
24        32.5% of annual adjusted gross receipts in excess of
25    $75,000,000 but not exceeding $100,000,000;
26        37.5% of annual adjusted gross receipts in excess of

 

 

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1    $100,000,000 but not exceeding $150,000,000;
2        45% of annual adjusted gross receipts in excess of
3    $150,000,000 but not exceeding $200,000,000;
4        50% of annual adjusted gross receipts in excess of
5    $200,000,000.
6    For the imposition of the privilege tax in this subsection
7(a-4), amounts paid pursuant to item (1) of subsection (b) of
8Section 56 of the Illinois Horse Racing Act of 1975 shall not
9be included in the determination of adjusted gross receipts.
10    (a-5) Beginning on January 1, 2020 the first day that an
11owners licensee under paragraph (1), (2), (3), (4), (5), or (6)
12of subsection (e-5) of Section 7 conducts gambling operations,
13either in a temporary facility or a permanent facility, a
14privilege tax is imposed on persons engaged in the business of
15conducting gambling operations, other than licensed managers
16conducting riverboat gambling operations on behalf of the
17State, based on the adjusted gross receipts received by such
18licensee from the gambling games authorized under this Act. The
19privilege tax for all gambling games other than table games,
20including, but not limited to, slot machines, video game of
21chance gambling, and electronic gambling games shall be at the
22following rates:
23        15% of annual adjusted gross receipts up to and
24    including $25,000,000;
25        22.5% of annual adjusted gross receipts in excess of
26    $25,000,000 but not exceeding $50,000,000;

 

 

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1        27.5% of annual adjusted gross receipts in excess of
2    $50,000,000 but not exceeding $75,000,000;
3        32.5% of annual adjusted gross receipts in excess of
4    $75,000,000 but not exceeding $100,000,000;
5        37.5% of annual adjusted gross receipts in excess of
6    $100,000,000 but not exceeding $150,000,000;
7        45% of annual adjusted gross receipts in excess of
8    $150,000,000 but not exceeding $200,000,000;
9        50% of annual adjusted gross receipts in excess of
10    $200,000,000.
11    The privilege tax for table games shall be at the following
12rates:
13        15% of annual adjusted gross receipts up to and
14    including $25,000,000;
15        20% of annual adjusted gross receipts in excess of
16    $25,000,000.
17    For the imposition of the privilege tax in this subsection
18(a-5), amounts paid pursuant to item (1) of subsection (b) of
19Section 56 of the Illinois Horse Racing Act of 1975 shall not
20be included in the determination of adjusted gross receipts.
21    As soon as practicable after the effective date of this
22amendatory Act of the 101st General Assembly, the Board shall
23calculate: (1) the amount of privilege taxes collected from
24each owners licensee from January 1, 2020 until the effective
25date of this amendatory Act of the 101st General Assembly
26pursuant to the tax rates set forth in subsection (a-4) and (2)

 

 

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1the amount of privilege taxes each owners licensee owes under
2this subsection (a-5) from January 1, 2020 until the effective
3date of this amendatory Act of the 101st General Assembly. The
4Board shall subtract the amount of privilege tax liability
5calculated under subsection (a-5) from the privilege taxes
6collected under subsection (a-4) and credit any overpaid amount
7of privilege taxes against the future privilege tax obligations
8of the owners license.
9    Notwithstanding the provisions of this subsection (a-5),
10for the first 10 years that the privilege tax is imposed under
11this subsection (a-5), the privilege tax shall be imposed on
12the modified annual adjusted gross receipts of a riverboat or
13casino conducting gambling operations in the City of East St.
14Louis, unless:
15        (1) the riverboat or casino fails to employ at least
16    450 people;
17        (2) the riverboat or casino fails to maintain
18    operations in a manner consistent with this Act or is not a
19    viable riverboat or casino subject to the approval of the
20    Board; or
21        (3) the owners licensee is not an entity in which
22    employees participate in an employee stock ownership plan.
23    As used in this subsection (a-5), "modified annual adjusted
24gross receipts" means:
25        (A) for calendar year 2020, the annual adjusted gross
26    receipts for the current year minus the difference between

 

 

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1    an amount equal to the average annual adjusted gross
2    receipts from a riverboat or casino conducting gambling
3    operations in the City of East St. Louis for 2014, 2015,
4    2016, 2017, and 2018 and the annual adjusted gross receipts
5    for 2018;
6        (B) for calendar year 2021, the annual adjusted gross
7    receipts for the current year minus the difference between
8    an amount equal to the average annual adjusted gross
9    receipts from a riverboat or casino conducting gambling
10    operations in the City of East St. Louis for 2014, 2015,
11    2016, 2017, and 2018 and the annual adjusted gross receipts
12    for 2019; and
13        (C) for calendar years 2022 through 2029, the annual
14    adjusted gross receipts for the current year minus the
15    difference between an amount equal to the average annual
16    adjusted gross receipts from a riverboat or casino
17    conducting gambling operations in the City of East St.
18    Louis for 3 years preceding the current year and the annual
19    adjusted gross receipts for the immediately preceding
20    year.
21    (a-5.5) In addition to the privilege tax imposed under
22subsection (a-5), a privilege tax is imposed on the owners
23licensee under paragraph (1) of subsection (e-5) of Section 7
24at the rate of one-third of the owners licensee's adjusted
25gross receipts.
26    For the imposition of the privilege tax in this subsection

 

 

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1(a-5.5), amounts paid pursuant to item (1) of subsection (b) of
2Section 56 of the Illinois Horse Racing Act of 1975 shall not
3be included in the determination of adjusted gross receipts.
4    (a-6) From June 28, 2019 (the effective date of Public Act
5101-31) this amendatory Act of the 101st General Assembly until
6June 30, 2023, an owners licensee that conducted gambling
7operations prior to January 1, 2011 shall receive a
8dollar-for-dollar credit against the tax imposed under this
9Section for any renovation or construction costs paid by the
10owners licensee, but in no event shall the credit exceed
11$2,000,000.
12    Additionally, from June 28, 2019 (the effective date of
13Public Act 101-31) this amendatory Act of the 101st General
14Assembly until December 31, 2022, an owners licensee that (i)
15is located within 15 miles of the Missouri border, and (ii) has
16at least 3 riverboats, casinos, or their equivalent within a
1745-mile radius, may be authorized to relocate to a new location
18with the approval of both the unit of local government
19designated as the home dock and the Board, so long as the new
20location is within the same unit of local government and no
21more than 3 miles away from its original location. Such owners
22licensee shall receive a credit against the tax imposed under
23this Section equal to 8% of the total project costs, as
24approved by the Board, for any renovation or construction costs
25paid by the owners licensee for the construction of the new
26facility, provided that the new facility is operational by July

 

 

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11, 2022. In determining whether or not to approve a relocation,
2the Board must consider the extent to which the relocation will
3diminish the gaming revenues received by other Illinois gaming
4facilities.
5    (a-7) Beginning in the initial adjustment year and through
6the final adjustment year, if the total obligation imposed
7pursuant to either subsection (a-5) or (a-6) will result in an
8owners licensee receiving less after-tax adjusted gross
9receipts than it received in calendar year 2018, then the total
10amount of privilege taxes that the owners licensee is required
11to pay for that calendar year shall be reduced to the extent
12necessary so that the after-tax adjusted gross receipts in that
13calendar year equals the after-tax adjusted gross receipts in
14calendar year 2018, but the privilege tax reduction shall not
15exceed the annual adjustment cap. If pursuant to this
16subsection (a-7), the total obligation imposed pursuant to
17either subsection (a-5) or (a-6) shall be reduced, then the
18owners licensee shall not receive a refund from the State at
19the end of the subject calendar year but instead shall be able
20to apply that amount as a credit against any payments it owes
21to the State in the following calendar year to satisfy its
22total obligation under either subsection (a-5) or (a-6). The
23credit for the final adjustment year shall occur in the
24calendar year following the final adjustment year.
25    If an owners licensee that conducted gambling operations
26prior to January 1, 2019 expands its riverboat or casino,

 

 

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1including, but not limited to, with respect to its gaming
2floor, additional non-gaming amenities such as restaurants,
3bars, and hotels and other additional facilities, and incurs
4construction and other costs related to such expansion from
5June 28, 2019 (the effective date of Public Act 101-31) this
6amendatory Act of the 101st General Assembly until June 28,
72024 (the 5th anniversary of the effective date of Public Act
8101-31) this amendatory Act of the 101st General Assembly, then
9for each $15,000,000 spent for any such construction or other
10costs related to expansion paid by the owners licensee, the
11final adjustment year shall be extended by one year and the
12annual adjustment cap shall increase by 0.2% of adjusted gross
13receipts during each calendar year until and including the
14final adjustment year. No further modifications to the final
15adjustment year or annual adjustment cap shall be made after
16$75,000,000 is incurred in construction or other costs related
17to expansion so that the final adjustment year shall not extend
18beyond the 9th calendar year after the initial adjustment year,
19not including the initial adjustment year, and the annual
20adjustment cap shall not exceed 4% of adjusted gross receipts
21in a particular calendar year. Construction and other costs
22related to expansion shall include all project related costs,
23including, but not limited to, all hard and soft costs,
24financing costs, on or off-site ground, road or utility work,
25cost of gaming equipment and all other personal property,
26initial fees assessed for each incremental gaming position, and

 

 

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1the cost of incremental land acquired for such expansion. Soft
2costs shall include, but not be limited to, legal fees,
3architect, engineering and design costs, other consultant
4costs, insurance cost, permitting costs, and pre-opening costs
5related to the expansion, including, but not limited to, any of
6the following: marketing, real estate taxes, personnel,
7training, travel and out-of-pocket expenses, supply,
8inventory, and other costs, and any other project related soft
9costs.
10    To be eligible for the tax credits in subsection (a-6), all
11construction contracts shall include a requirement that the
12contractor enter into a project labor agreement with the
13building and construction trades council with geographic
14jurisdiction of the location of the proposed gaming facility.
15    Notwithstanding any other provision of this subsection
16(a-7), this subsection (a-7) does not apply to an owners
17licensee unless such owners licensee spends at least
18$15,000,000 on construction and other costs related to its
19expansion, excluding the initial fees assessed for each
20incremental gaming position.
21    This subsection (a-7) does not apply to owners licensees
22authorized pursuant to subsection (e-5) of Section 7 of this
23Act.
24    For purposes of this subsection (a-7):
25    "Building and construction trades council" means any
26organization representing multiple construction entities that

 

 

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1are monitoring or attentive to compliance with public or
2workers' safety laws, wage and hour requirements, or other
3statutory requirements or that are making or maintaining
4collective bargaining agreements.
5    "Initial adjustment year" means the year commencing on
6January 1 of the calendar year immediately following the
7earlier of the following:
8        (1) the commencement of gambling operations, either in
9    a temporary or permanent facility, with respect to the
10    owners license authorized under paragraph (1) of
11    subsection (e-5) of Section 7 of this Act; or
12        (2) June 28, 2021 (24 months after the effective date
13    of Public Act 101-31); this amendatory Act of the 101st
14    General Assembly,
15provided the initial adjustment year shall not commence earlier
16than June 28, 2020 (12 months after the effective date of
17Public Act 101-31) this amendatory Act of the 101st General
18Assembly.
19    "Final adjustment year" means the 2nd calendar year after
20the initial adjustment year, not including the initial
21adjustment year, and as may be extended further as described in
22this subsection (a-7).
23    "Annual adjustment cap" means 3% of adjusted gross receipts
24in a particular calendar year, and as may be increased further
25as otherwise described in this subsection (a-7).
26    (a-8) Riverboat gambling operations conducted by a

 

 

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1licensed manager on behalf of the State are not subject to the
2tax imposed under this Section.
3    (a-9) Beginning on January 1, 2020, the calculation of
4gross receipts or adjusted gross receipts, for the purposes of
5this Section, for a riverboat, a casino, or an organization
6gaming facility shall not include the dollar amount of
7non-cashable vouchers, coupons, and electronic promotions
8redeemed by wagerers upon the riverboat, in the casino, or in
9the organization gaming facility up to and including an amount
10not to exceed 20% of a riverboat's, a casino's, or an
11organization gaming facility's adjusted gross receipts.
12    The Illinois Gaming Board shall submit to the General
13Assembly a comprehensive report no later than March 31, 2023
14detailing, at a minimum, the effect of removing non-cashable
15vouchers, coupons, and electronic promotions from this
16calculation on net gaming revenues to the State in calendar
17years 2020 through 2022, the increase or reduction in wagerers
18as a result of removing non-cashable vouchers, coupons, and
19electronic promotions from this calculation, the effect of the
20tax rates in subsection (a-5) on net gaming revenues to this
21State, and proposed modifications to the calculation.
22    (a-10) The taxes imposed by this Section shall be paid by
23the licensed owner or the organization gaming licensee to the
24Board not later than 5:00 o'clock p.m. of the day after the day
25when the wagers were made.
26    (a-15) If the privilege tax imposed under subsection (a-3)

 

 

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1is no longer imposed pursuant to item (i) of the last paragraph
2of subsection (a-3), then by June 15 of each year, each owners
3licensee, other than an owners licensee that admitted 1,000,000
4persons or fewer in calendar year 2004, must, in addition to
5the payment of all amounts otherwise due under this Section,
6pay to the Board a reconciliation payment in the amount, if
7any, by which the licensed owner's base amount exceeds the
8amount of net privilege tax paid by the licensed owner to the
9Board in the then current State fiscal year. A licensed owner's
10net privilege tax obligation due for the balance of the State
11fiscal year shall be reduced up to the total of the amount paid
12by the licensed owner in its June 15 reconciliation payment.
13The obligation imposed by this subsection (a-15) is binding on
14any person, firm, corporation, or other entity that acquires an
15ownership interest in any such owners license. The obligation
16imposed under this subsection (a-15) terminates on the earliest
17of: (i) July 1, 2007, (ii) the first day after the effective
18date of this amendatory Act of the 94th General Assembly that
19riverboat gambling operations are conducted pursuant to a
20dormant license, (iii) the first day that riverboat gambling
21operations are conducted under the authority of an owners
22license that is in addition to the 10 owners licenses initially
23authorized under this Act, or (iv) the first day that a
24licensee under the Illinois Horse Racing Act of 1975 conducts
25gaming operations with slot machines or other electronic gaming
26devices. The Board must reduce the obligation imposed under

 

 

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1this subsection (a-15) by an amount the Board deems reasonable
2for any of the following reasons: (A) an act or acts of God,
3(B) an act of bioterrorism or terrorism or a bioterrorism or
4terrorism threat that was investigated by a law enforcement
5agency, or (C) a condition beyond the control of the owners
6licensee that does not result from any act or omission by the
7owners licensee or any of its agents and that poses a hazardous
8threat to the health and safety of patrons. If an owners
9licensee pays an amount in excess of its liability under this
10Section, the Board shall apply the overpayment to future
11payments required under this Section.
12    For purposes of this subsection (a-15):
13    "Act of God" means an incident caused by the operation of
14an extraordinary force that cannot be foreseen, that cannot be
15avoided by the exercise of due care, and for which no person
16can be held liable.
17    "Base amount" means the following:
18        For a riverboat in Alton, $31,000,000.
19        For a riverboat in East Peoria, $43,000,000.
20        For the Empress riverboat in Joliet, $86,000,000.
21        For a riverboat in Metropolis, $45,000,000.
22        For the Harrah's riverboat in Joliet, $114,000,000.
23        For a riverboat in Aurora, $86,000,000.
24        For a riverboat in East St. Louis, $48,500,000.
25        For a riverboat in Elgin, $198,000,000.
26    "Dormant license" has the meaning ascribed to it in

 

 

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1subsection (a-3).
2    "Net privilege tax" means all privilege taxes paid by a
3licensed owner to the Board under this Section, less all
4payments made from the State Gaming Fund pursuant to subsection
5(b) of this Section.
6    The changes made to this subsection (a-15) by Public Act
794-839 are intended to restate and clarify the intent of Public
8Act 94-673 with respect to the amount of the payments required
9to be made under this subsection by an owners licensee to the
10Board.
11    (b) From the tax revenue from riverboat or casino gambling
12deposited in the State Gaming Fund under this Section, an
13amount equal to 5% of adjusted gross receipts generated by a
14riverboat or a casino, other than a riverboat or casino
15designated in paragraph (1), (3), or (4) of subsection (e-5) of
16Section 7, shall be paid monthly, subject to appropriation by
17the General Assembly, to the unit of local government in which
18the casino is located or that is designated as the home dock of
19the riverboat. Notwithstanding anything to the contrary,
20beginning on the first day that an owners licensee under
21paragraph (1), (2), (3), (4), (5), or (6) of subsection (e-5)
22of Section 7 conducts gambling operations, either in a
23temporary facility or a permanent facility, and for 2 years
24thereafter, a unit of local government designated as the home
25dock of a riverboat whose license was issued before January 1,
262019, other than a riverboat conducting gambling operations in

 

 

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1the City of East St. Louis, shall not receive less under this
2subsection (b) than the amount the unit of local government
3received under this subsection (b) in calendar year 2018.
4Notwithstanding anything to the contrary and because the City
5of East St. Louis is a financially distressed city, beginning
6on the first day that an owners licensee under paragraph (1),
7(2), (3), (4), (5), or (6) of subsection (e-5) of Section 7
8conducts gambling operations, either in a temporary facility or
9a permanent facility, and for 10 years thereafter, a unit of
10local government designated as the home dock of a riverboat
11conducting gambling operations in the City of East St. Louis
12shall not receive less under this subsection (b) than the
13amount the unit of local government received under this
14subsection (b) in calendar year 2018.
15    From the tax revenue deposited in the State Gaming Fund
16pursuant to riverboat or casino gambling operations conducted
17by a licensed manager on behalf of the State, an amount equal
18to 5% of adjusted gross receipts generated pursuant to those
19riverboat or casino gambling operations shall be paid monthly,
20subject to appropriation by the General Assembly, to the unit
21of local government that is designated as the home dock of the
22riverboat upon which those riverboat gambling operations are
23conducted or in which the casino is located.
24    From the tax revenue from riverboat or casino gambling
25deposited in the State Gaming Fund under this Section, an
26amount equal to 5% of the adjusted gross receipts generated by

 

 

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1a riverboat designated in paragraph (3) of subsection (e-5) of
2Section 7 shall be divided and remitted monthly, subject to
3appropriation, as follows: 70% to Waukegan, 10% to Park City,
415% to North Chicago, and 5% to Lake County.
5    From the tax revenue from riverboat or casino gambling
6deposited in the State Gaming Fund under this Section, an
7amount equal to 5% of the adjusted gross receipts generated by
8a riverboat designated in paragraph (4) of subsection (e-5) of
9Section 7 shall be remitted monthly, subject to appropriation,
10as follows: 70% to the City of Rockford, 5% to the City of
11Loves Park, 5% to the Village of Machesney, and 20% to
12Winnebago County.
13    From the tax revenue from riverboat or casino gambling
14deposited in the State Gaming Fund under this Section, an
15amount equal to 5% of the adjusted gross receipts generated by
16a riverboat designated in paragraph (5) of subsection (e-5) of
17Section 7 shall be remitted monthly, subject to appropriation,
18as follows: 2% to the unit of local government in which the
19riverboat or casino is located, and 3% shall be distributed:
20(A) in accordance with a regional capital development plan
21entered into by the following communities: Village of Beecher,
22City of Blue Island, Village of Burnham, City of Calumet City,
23Village of Calumet Park, City of Chicago Heights, City of
24Country Club Hills, Village of Crestwood, Village of Crete,
25Village of Dixmoor, Village of Dolton, Village of East Hazel
26Crest, Village of Flossmoor, Village of Ford Heights, Village

 

 

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1of Glenwood, City of Harvey, Village of Hazel Crest, Village of
2Homewood, Village of Lansing, Village of Lynwood, City of
3Markham, Village of Matteson, Village of Midlothian, Village of
4Monee, City of Oak Forest, Village of Olympia Fields, Village
5of Orland Hills, Village of Orland Park, City of Palos Heights,
6Village of Park Forest, Village of Phoenix, Village of Posen,
7Village of Richton Park, Village of Riverdale, Village of
8Robbins, Village of Sauk Village, Village of South Chicago
9Heights, Village of South Holland, Village of Steger, Village
10of Thornton, Village of Tinley Park, Village of University Park
11and Village of Worth; or (B) if no regional capital development
12plan exists, equally among the communities listed in item (A)
13to be used for capital expenditures or public pension payments,
14or both.
15    Units of local government may refund any portion of the
16payment that they receive pursuant to this subsection (b) to
17the riverboat or casino.
18    (b-4) Beginning on the first day the licensee under
19paragraph (5) of subsection (e-5) of Section 7 conducts
20gambling operations, either in a temporary facility or a
21permanent facility, and ending on July 31, 2042, from the tax
22revenue deposited in the State Gaming Fund under this Section,
23$5,000,000 shall be paid annually, subject to appropriation, to
24the host municipality of that owners licensee of a license
25issued or re-issued pursuant to Section 7.1 of this Act before
26January 1, 2012. Payments received by the host municipality

 

 

SB3742- 21 -LRB101 20142 SMS 69679 b

1pursuant to this subsection (b-4) may not be shared with any
2other unit of local government.
3    (b-5) Beginning on June 28, 2019 (the effective date of
4Public Act 101-31) this amendatory Act of the 101st General
5Assembly, from the tax revenue deposited in the State Gaming
6Fund under this Section, an amount equal to 3% of adjusted
7gross receipts generated by each organization gaming facility
8located outside Madison County shall be paid monthly, subject
9to appropriation by the General Assembly, to a municipality
10other than the Village of Stickney in which each organization
11gaming facility is located or, if the organization gaming
12facility is not located within a municipality, to the county in
13which the organization gaming facility is located, except as
14otherwise provided in this Section. From the tax revenue
15deposited in the State Gaming Fund under this Section, an
16amount equal to 3% of adjusted gross receipts generated by an
17organization gaming facility located in the Village of Stickney
18shall be paid monthly, subject to appropriation by the General
19Assembly, as follows: 25% to the Village of Stickney, 5% to the
20City of Berwyn, 50% to the Town of Cicero, and 20% to the
21Stickney Public Health District.
22    From the tax revenue deposited in the State Gaming Fund
23under this Section, an amount equal to 5% of adjusted gross
24receipts generated by an organization gaming facility located
25in the City of Collinsville shall be paid monthly, subject to
26appropriation by the General Assembly, as follows: 30% to the

 

 

SB3742- 22 -LRB101 20142 SMS 69679 b

1City of Alton, 30% to the City of East St. Louis, and 40% to the
2City of Collinsville.
3    Municipalities and counties may refund any portion of the
4payment that they receive pursuant to this subsection (b-5) to
5the organization gaming facility.
6    (b-6) Beginning on June 28, 2019 (the effective date of
7Public Act 101-31) this amendatory Act of the 101st General
8Assembly, from the tax revenue deposited in the State Gaming
9Fund under this Section, an amount equal to 2% of adjusted
10gross receipts generated by an organization gaming facility
11located outside Madison County shall be paid monthly, subject
12to appropriation by the General Assembly, to the county in
13which the organization gaming facility is located for the
14purposes of its criminal justice system or health care system.
15    Counties may refund any portion of the payment that they
16receive pursuant to this subsection (b-6) to the organization
17gaming facility.
18    (b-7) From the tax revenue from the organization gaming
19licensee located in one of the following townships of Cook
20County: Bloom, Bremen, Calumet, Orland, Rich, Thornton, or
21Worth, an amount equal to 5% of the adjusted gross receipts
22generated by that organization gaming licensee shall be
23remitted monthly, subject to appropriation, as follows: 2% to
24the unit of local government in which the organization gaming
25licensee is located, and 3% shall be distributed: (A) in
26accordance with a regional capital development plan entered

 

 

SB3742- 23 -LRB101 20142 SMS 69679 b

1into by the following communities: Village of Beecher, City of
2Blue Island, Village of Burnham, City of Calumet City, Village
3of Calumet Park, City of Chicago Heights, City of Country Club
4Hills, Village of Crestwood, Village of Crete, Village of
5Dixmoor, Village of Dolton, Village of East Hazel Crest,
6Village of Flossmoor, Village of Ford Heights, Village of
7Glenwood, City of Harvey, Village of Hazel Crest, Village of
8Homewood, Village of Lansing, Village of Lynwood, City of
9Markham, Village of Matteson, Village of Midlothian, Village of
10Monee, City of Oak Forest, Village of Olympia Fields, Village
11of Orland Hills, Village of Orland Park, City of Palos Heights,
12Village of Park Forest, Village of Phoenix, Village of Posen,
13Village of Richton Park, Village of Riverdale, Village of
14Robbins, Village of Sauk Village, Village of South Chicago
15Heights, Village of South Holland, Village of Steger, Village
16of Thornton, Village of Tinley Park, Village of University
17Park, and Village of Worth; or (B) if no regional capital
18development plan exists, equally among the communities listed
19in item (A) to be used for capital expenditures or public
20pension payments, or both.
21    (b-8) In lieu of the payments under subsection (b) of this
22Section, the tax revenue from the privilege tax imposed by
23subsection (a-5.5) shall be paid monthly, subject to
24appropriation by the General Assembly, to the City of Chicago
25and shall be expended or obligated by the City of Chicago for
26pension payments in accordance with Public Act 99-506.

 

 

SB3742- 24 -LRB101 20142 SMS 69679 b

1    (c) Appropriations, as approved by the General Assembly,
2may be made from the State Gaming Fund to the Board (i) for the
3administration and enforcement of this Act and the Video Gaming
4Act, (ii) for distribution to the Department of State Police
5and to the Department of Revenue for the enforcement of this
6Act, and the Video Gaming Act, and (iii) to the Department of
7Human Services for the administration of programs to treat
8problem gambling, including problem gambling from sports
9wagering. The Board's annual appropriations request must
10separately state its funding needs for the regulation of gaming
11authorized under Section 7.7, riverboat gaming, casino gaming,
12video gaming, and sports wagering.
13    (c-2) An amount equal to 2% of the adjusted gross receipts
14generated by an organization gaming facility located within a
15home rule county with a population of over 3,000,000
16inhabitants shall be paid, subject to appropriation from the
17General Assembly, from the State Gaming Fund to the home rule
18county in which the organization gaming licensee is located for
19the purpose of enhancing the county's criminal justice system.
20    (c-3) Appropriations, as approved by the General Assembly,
21may be made from the tax revenue deposited into the State
22Gaming Fund from organization gaming licensees pursuant to this
23Section for the administration and enforcement of this Act.
24    (c-4) After payments required under subsections (b),
25(b-5), (b-6), (b-7), (c), (c-2), and (c-3) have been made from
26the tax revenue from organization gaming licensees deposited

 

 

SB3742- 25 -LRB101 20142 SMS 69679 b

1into the State Gaming Fund under this Section, all remaining
2amounts from organization gaming licensees shall be
3transferred into the Capital Projects Fund.
4    (c-5) (Blank).
5    (c-10) Each year the General Assembly shall appropriate
6from the General Revenue Fund to the Education Assistance Fund
7an amount equal to the amount paid into the Horse Racing Equity
8Fund pursuant to subsection (c-5) in the prior calendar year.
9    (c-15) After the payments required under subsections (b),
10(c), and (c-5) have been made, an amount equal to 2% of the
11adjusted gross receipts of (1) an owners licensee that
12relocates pursuant to Section 11.2, (2) an owners licensee
13conducting riverboat gambling operations pursuant to an owners
14license that is initially issued after June 25, 1999, or (3)
15the first riverboat gambling operations conducted by a licensed
16manager on behalf of the State under Section 7.3, whichever
17comes first, shall be paid, subject to appropriation from the
18General Assembly, from the State Gaming Fund to each home rule
19county with a population of over 3,000,000 inhabitants for the
20purpose of enhancing the county's criminal justice system.
21    (c-20) Each year the General Assembly shall appropriate
22from the General Revenue Fund to the Education Assistance Fund
23an amount equal to the amount paid to each home rule county
24with a population of over 3,000,000 inhabitants pursuant to
25subsection (c-15) in the prior calendar year.
26    (c-21) After the payments required under subsections (b),

 

 

SB3742- 26 -LRB101 20142 SMS 69679 b

1(b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), and (c-4) have
2been made, an amount equal to 2% of the adjusted gross receipts
3generated by the owners licensee under paragraph (1) of
4subsection (e-5) of Section 7 shall be paid, subject to
5appropriation from the General Assembly, from the State Gaming
6Fund to the home rule county in which the owners licensee is
7located for the purpose of enhancing the county's criminal
8justice system.
9    (c-22) After the payments required under subsections (b),
10(b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), (c-4), and
11(c-21) have been made, an amount equal to 2% of the adjusted
12gross receipts generated by the owners licensee under paragraph
13(5) of subsection (e-5) of Section 7 shall be paid, subject to
14appropriation from the General Assembly, from the State Gaming
15Fund to the home rule county in which the owners licensee is
16located for the purpose of enhancing the county's criminal
17justice system.
18    (c-25) From July 1, 2013 and each July 1 thereafter through
19July 1, 2019, $1,600,000 shall be transferred from the State
20Gaming Fund to the Chicago State University Education
21Improvement Fund.
22    On July 1, 2020 and each July 1 thereafter, $3,000,000
23shall be transferred from the State Gaming Fund to the Chicago
24State University Education Improvement Fund.
25    (c-30) On July 1, 2013 or as soon as possible thereafter,
26$92,000,000 shall be transferred from the State Gaming Fund to

 

 

SB3742- 27 -LRB101 20142 SMS 69679 b

1the School Infrastructure Fund and $23,000,000 shall be
2transferred from the State Gaming Fund to the Horse Racing
3Equity Fund.
4    (c-35) Beginning on July 1, 2013, in addition to any amount
5transferred under subsection (c-30) of this Section,
6$5,530,000 shall be transferred monthly from the State Gaming
7Fund to the School Infrastructure Fund.
8    (d) From time to time, the Board shall transfer the
9remainder of the funds generated by this Act into the Education
10Assistance Fund, created by Public Act 86-0018, of the State of
11Illinois.
12    (e) Nothing in this Act shall prohibit the unit of local
13government designated as the home dock of the riverboat from
14entering into agreements with other units of local government
15in this State or in other states to share its portion of the
16tax revenue.
17    (f) To the extent practicable, the Board shall administer
18and collect the wagering taxes imposed by this Section in a
19manner consistent with the provisions of Sections 4, 5, 5a, 5b,
205c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the
21Retailers' Occupation Tax Act and Section 3-7 of the Uniform
22Penalty and Interest Act.
23(Source: P.A. 101-31, Article 25, Section 25-910, eff. 6-28-19;
24101-31, Article 35, Section 35-55, eff. 6-28-19; revised
258-23-19.)
 
26    Section 99. Effective date. This Act takes effect upon

 

 

SB3742- 28 -LRB101 20142 SMS 69679 b

1becoming law.