In a bold move that has sparked debate among Illinois legislators, a bill proposing to increase the Video Gaming Terminal (VGT) tax to 35% has been introduced. The measure, which is currently being discussed in the state capitol, aims to generate more revenue for the state while also potentially tapping into the lucrative Chicago gaming market.
Currently, Illinois imposes a 30% tax on VGTs, which are electronic gaming devices commonly found in bars, restaurants, and truck stops across the state. These machines have become a significant source of revenue for businesses, as well as for the state, which collects taxes on the machines.
The proposed increase to 35% has been met with mixed reactions. Supporters of the measure argue that it would bring in much-needed funds for the state, which is facing a budget deficit. They also believe that it could help attract more operators to the Chicago area, where there is a high demand for gaming options.
Opponents, however, are concerned that the higher tax rate could drive operators out of business or lead to a decrease in revenue for businesses that rely on VGTs. They argue that a lower tax rate would be more beneficial in the long run, as it would encourage more operators to set up shop in Illinois.
The debate comes at a time when the gaming industry in Illinois is facing increased competition from neighboring states, such as Indiana and Wisconsin, which have lower tax rates on VGTs. Legislators are under pressure to find a balance between generating revenue for the state and keeping businesses competitive.
If the bill is passed, it will mark a significant change in the Illinois gaming landscape. Operators will have to adjust to the higher tax rate, while also navigating the potential opportunities for growth in the Chicago market.
As the discussions continue, all eyes will be on the Illinois legislators as they decide the fate of the proposed VGT tax increase. The outcome of this debate could have far-reaching implications for the gaming industry in the state and beyond.
