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SPRINGFIELD, Ill. (WBBM NEWSRADIO) -- Governor JB Pritzker signed a bill into law Tuesday finalizing a gaming package that paves the way for a Chicago casino by reworking existing tax structures, allowing gaming at the State Fair and providing relief during the pandemic.
According to the Governor's Office, this bill will fund critical infrastructure and create thousands of jobs across the state.
"Working with the General Assembly and Mayor Lightfoot, we accomplished what eluded so many others, and now this momentous legislation tackles key priorities for the State of Illinois - helping to ensure that Chicago can pay for first responders' pensions and alleviate the burden on property taxpayers, along with investing in universities and hospitals throughout the state," said Governor JB Pritzker, in a statement. "Thousands of Illinoisans will be working on these projects, earning a good living that will support their families as we do the important work of rebuilding our crumbling infrastructure and investing in the future."
Lawmakers passed the bill during their special session in May. They initially approved a Chicago casino plan in the massive gaming expansion law enacted in 2019, but a subsequent study showed the taxes and fees included in that bill would have made such a casino financially infeasible.
"After decades of proposals and false-starts, the Chicago casino has now become law, paving the way for a transformative new funding source for Illinois' infrastructure, as well as helping shore up Chicago's own significant pension obligations, in addition to serving as the impetus for a dynamic new entertainment district in our city," said Chicago Mayor Lori E. Lightfoot, in a statement. "I am grateful for Governor Pritzker's support throughout this process. I also want to give a special thanks to Representatives Rita, Hoffman and Cassidy in the House, as well as Leader Durkin. Additionally, this achievement would not have been possible without the support of President Harmon, Senator Cunningham, and Leader Lightford in the Senate, as well as so many other members in both chambers, along with countless labor and business groups, and community organizations whose collaboration and partnership was instrumental in turning a financially viable Chicago casino into a reality and strengthening the fiscal path for our city's future."
The bill signed by Pritzker, Senate Bill 516, establishes new Privilege Tax schedules for the Chicago casino and provides tax relief for existing casinos by extending the payment period for reconciliation payments and waiving interest on those payments. Existing casinos will also find relief from the accelerated Privilege Tax rate structure and the one-year extension of the sports wagering license fee due date.
The law provides for a lower tax schedule that ranges from 22.5 to 77.4 percent of adjusted gross receipts from slot machines, and from 15 to 35 percent on table games. That revenue is split between the state and the city of Chicago, with the state getting the larger share of the cut.
While the bill was being negotiated earlier this year, Mayor Lightfoot estimated a casino would produce around $1.2 billion in revenue, with most of that going to the state to pay for projects such as hospitals and university campus improvements. The city's share of revenue is earmarked for police and firefighter pension obligations, with some going to Cook County's criminal justice system.
The measure also allows for the operation of video gambling terminals at the Illinois State Fair in Springfield and the DuQuoin State Fair. It calls on the agency to sign three-year contracts with licensed terminal operators, with money from those contracts going to each fair’s capital improvements and harness racing funds.
The bill takes effect Wednesday, July 1.