SR0303 102ND GENERAL ASSEMBLY

SR0303 LRB102 18487 MST 26640 r

SENATE RESOLUTION

WHEREAS, COVID-19 created unprecedented circumstances that changed the lives of all Illinoisans; and

WHEREAS, Changes in consumer behavior are likely to continue after the virus has run its course; and

WHEREAS, The COVID-19 pandemic made many Illinoisans wary of leaving their homes for nonessential activities and forced many casinos to close their doors for the safety of their patrons and employees; and

WHEREAS, Internet gaming is partially immune to pandemics due to the remote nature of this type of gaming; and

WHEREAS, States with legal and available internet gaming, such as New Jersey, Pennsylvania, and Delaware, were able to generate revenue during the COVID-19 pandemic; and

WHEREAS, Nationwide, in the few states that offer it, internet gaming earned approximately $402.7 million in gross gaming revenue during the second quarter of 2020, a more productive quarter than national sports betting operations have had to date, according to the American Gaming Association; and

WHEREAS, An internet gaming law in Illinois that permits online table games, slots, and poker with consumer safeguards, a privilege tax on the adjusted gross gaming revenue wagered on internet gaming platforms, and licensing fees has the potential to increase revenue to the State during the COVID-19 pandemic; therefore, be it

RESOLVED, BY THE SENATE OF THE ONE HUNDRED SECOND GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that on or before October 1, 2021 the Commission on Government Forecasting and Accountability is urged to deliver a report to the Illinois Senate that includes, at a minimum, detailed estimates of the revenue that could have been generated through a privilege tax if Illinois had implemented internet gaming beginning February 28, 2020; and be it further

RESOLVED, The report should include, at a minimum, estimates of revenue that could be generated with a privilege tax imposed on the adjusted gross gaming revenue wagered on internet gaming platforms at the following rates:

(a) 12%;

(b) 15%;

(c) 16%; and

(d) 15% of the adjusted gross revenue up to and including $25 million and 20% of the adjusted gross revenue in excess of $25 million; and be it further

RESOLVED, That the definition of adjusted gross revenue used in the report should include the total of all sums actually received by an Internet gaming licensee from Internet gaming operations excluding free play and any promotional credits, less the total of all sums actually paid out as winnings to patrons, which includes the cash equivalent of any merchandise or thing of value awarded as a prize; and be it further

RESOLVED, That the report should provide additional revenue estimates where the definition of adjusted gross revenue excludes the dollar amount of non-cashable vouchers, coupons, or promotions redeemed by participants on an Internet gaming platform; and be it further

RESOLVED, That a suitable copy of this resolution be delivered to the Commission on Government Forecasting and Accountability.