Chicago policymakers propose that legalizing online sports betting and video gaming could generate substantial revenue for the city
**Chicago City Council Members Seek Greater Share of Video Gaming and Online Sports Betting Revenue**
In a move to boost the city's revenue, Chicago City Council members are pushing for a greater share of tax revenue from video gaming and online sports betting. The current tax structure in Illinois heavily favours the state, with a significant portion of gaming revenue going to the state, leaving Chicago with minimal returns.
Ald. William Hall, the chair of the Council's Revenue Subcommittee, estimates that the total jackpot from video gaming in Illinois is $1.1 billion, with approximately $955 million going to the state. No specific details are given about the proposed tax rate for online sports betting or video gaming in Chicago, but the overall jackpot is estimated to be $1.1 billion.
Currently, Chicago has a ban on video gaming, but City Council members want to lift it. For video gaming, the city collects just 5.15% of VGT terminal revenue as a local โoperatorโsโ license fee, which is far less than what would be collected from full-scale casino slot machines, despite their similar nature. In contrast, online sports betting is taxed entirely at the state level (15% of AGR), with no municipal share or split for Chicago.
City Council members demand a greater cut of tax revenue from the state regarding video gaming. They suggest cracking down on illegal sweepstakes machines and taxing online sports betting in Chicago. However, no details are provided about the timeline for lifting the city ban on video gaming or the potential impact on Chicago's economy.
While the state may allocate some sports betting revenue to economic development, problem gambling, or other programs, these are not specifically earmarked as โsharesโ for Chicago or other municipalities. Similarly, there is no statutory formula that divides the state video gaming tax revenue between the state and Chicago or other municipalities.
If you need a breakdown of actual dollar amounts or further details on earmarked uses, you would need to consult annual reports from the Illinois Gaming Board and city of Chicago budget documents. The Council's Revenue Subcommittee is involved in discussions about these matters, aiming to secure a fairer distribution of gaming revenue for Chicago and other municipalities.
Ald. William Hall proposes to increase City's revenue by taxing online sports betting and lifting the ban on video gaming, asserting that the current structure heavily favors the state. Meanwhile, he suggests styraeghly enforcing illegal casino-and-gambling activities to generate more revenue from these businesses.
