Illinois General Assembly amends Chicago Casino Tax Structure
Pushing the long-awaited Chicago casino project closer to reality, members of the Illinois General Assembly amended casino tax structure for the city after state lawmakers agreed to trim down its tax responsibilities.
The Windy City businesses have been under lockdown since mid of March this year, after state authorities issued “stay-at-home” order as part of the efforts to curb deadly corona virus pandemic that has infected millions of Americans and left many of them dead.
Amendments in the tax structure for Chicago casinos was part of a roughly $40 billion proposed budget that got the Illinois General Assembly’s approval over the past weekend. The Chicago casino measure, House Bill 516, was made part of that budget package. Chicago Mayor Lori Lightfoot (Democrat) campaigned aggressively to make lawmakers to reconsider how the proposed Chicago casino will be licensed and taxed.
Under Illinois original law, the Chicago casino would be taxed at a rate of 72 per cent. The effective tax on the entertainment property’s gross gaming revenue (GGR) is based on a 38.7 per cent tax rate on casino win, in addition to a 33.3 per cent “privilege tax” that funds pensions for first responders. The review was conducted by the Las Vegas gaming consultancy Union Gaming that was commissioned by Illinois Gaming Board (IGB).
Along with the previous exorbitant tax rate, the proposed Chicago casino operator would be required to pay $15 million and $120 million in upfront license fee and in gambling position fees, respectively. In addition, it would have to pay $30,000 in one-time fee.
The tax restructuring is, however, expected to decrease the amount of tax revenue to be received by Illinois by $850 million to $500 million per annum.
Commenting on tax restructuring, bill sponsor Rep. Bob Rita (D) said, “The idea is to make this work for Chicago, so that we could fund a vertical capital bill, put people to work. Not only for Chicago, but for everywhere in the entire state of Illinois… This is good for everyone for jobs and development – having a Chicago casino be real.”
The amendment in Chicago casino tax structure was part of Illinois lawmakers and Democratic Governor J.B. Pritzker’s “Rebuild Illinois” plan, which proposes massive spending on infrastructure to provide a much-needed boost to local economy. Chicago entertainment properties have thus far been discouraged by excessive burden of taxes. That is why, lawmakers decided to trim down the exorbitant tax rates to make Chicago attractive to casino operators.
- New ET7 Electric Sedan Brings NIO Closer To Fully Autonomous Driving Capability
- Massachusetts Governor Baker’s 25% capacity rule is death warrant for Casinos: Richard McGowan
- San Diego Tribal Casinos refute report blaming them of spreading COVID-19
- Tennessee reports robust $131.4 million sports betting handle in November
- Nikola Motor electric waste management truck deal with Republic Services cancelled
New Zealand News
- What Does Phasing Out Cheques Tell Us About Finance in New Zealand?
- South Korean casino operator GKL closes third casino amid soaring cases of COVID-19
- Top Live Casinos in India and Pure Casino Signup Offer
- Independent MP Justin Field making efforts to prevent NSW from compensating Crown Resorts
- President-elect Biden’s Climate Plan to provide big boost to EVs and green power
American gaming and hospitality giant Boyd Gaming...Read More
An American citizen who had boasted in front of an...Read More
Pushing the long-awaited Chicago casino project...Read More
A study was conducted to evaluate the effect a...Read More
Tech biggie Google’s recent filing with the US...Read More