Video Gaming Terminals Coming To An Illinois Fair Near You — Next Year

Film games will be showcased at Illinois fairs in the near future, but they will not be utilized until 2021.

Illinois Governor JB Pritzker signed SB 516 into law last week, allowing for the installation of video gaming terminals (VGTs) at the state fairgrounds in Springfield and Du Quoin.

The COVID-19 pandemic has resulted in the cancellation of both fairs this summer, meaning Illinoisans will have to wait another year before they can enjoy them.

The legislation permits a maximum of 30 Video Gaming Terminals (VGTs) at the Du Quoin State Fair and 50 at an Illinois state fair, once they are able to implement them.

The IDOA will choose three terminal operators with licenses from the Illinois Gaming Board to serve a three-year term.

This news is beneficial for both customers and the state, but to what degree?

State representative slams aspirations

Rep. Tim Butler (R-Springale) strongly supported the introduction of VGTs to the state fair, but he does not anticipate them generating revenue.

In 2019, Butler told the State-Journal Register, “I have not come across any solid data indicating the potential earnings it may generate.”

The amount of money involved will not be substantial, considering we are only talking about the 10-day duration of the fair and 50 machines.

Butler confirmed that the terminals will be situated in the beer tents, guaranteeing that only individuals aged 21 or older will have access. He also mentioned that all proceeds will be allocated to the State Fairgrounds Capital Improvements and Harness Racing Fund.

Impacts of SB 516 on Chicago casinos

The bill helps make the downtown casino project in Chicago more feasible by adjusting its tax code, which could have long-lasting positive effects on the Illinois economy.

Pritzker told The Lansing Journal that thousands of Illinois residents will have the opportunity to work on these projects, earning a livable wage to support their families as we work to improve our crumbling infrastructure and invest in the future.

The gaming package in Illinois has been officially approved by legislation.

Put simply, the beginning of the game has been challenging. There have been heated discussions about taxes and no agreement on a location. However, SB 516 proposes a new “opportunity tax” and set schedules for the Chicago casino, which should help move things along more quickly.

The Lansing Journal has graciously supplied the revised income schedule for the Chicago game.

Chicago game income schedule

Slots

Gross Revenue Adjusted	State	City	Total
between$ 0 and$ 25 million	12%	10.5%	22.5%
$ 25 million to$ 50 million	16%	14%	30%
$ 50 million to$ 75 million	20.1%	17.4%	37.5%
$ 75 million to$ 100 million	21.4%	18.6%	40%
$ 100 million to$ 150 million	22.7%	19.8%	42.5%
$ 150 million to$ 225 million	24.1%	20.9%	45%
$ 225 million to$ 1 billion	26.8%	23.2%	50%
$ 1 billion or more	40%	34.7%	74.7%

activities at tables

Gross Revenue Adjusted	State	City	Total
between$ 0 and$ 25 million	8.1%	6.9%	15%
$ 25,000,000 to$ 75,000,000	10.7%	8.4%	19.1%
$ 75 million to$ 175 million	11.2%	9.8%	21%
$ 225 million to$ 175 million	13.5%	11.5%	25%
$ 225 million to$ 275 million	15.1%	12.9%	28%
$ 275 million to$ 375 million	16.2%	13.8%	30%
$ 375 million or more	18.9%	16.1%	35%

The current rates are mostly consistent with those reported in May, with a slight tweak to the top table game revenues. While the rates have not changed significantly since the project was nearly doomed by the tax code, there have been notable adjustments to the graduated tier thresholds.

Lori Lightfoot, the Mayor of Chicago, declared:

The approval of the Chicago casino represents a groundbreaking move towards securing additional funding for Illinois’ infrastructure. In addition to supporting the city’s substantial pension obligations, it also serves as a catalyst for the creation of a new entertainment hub within our city.

When was the last time the State Fair didn’t take place? During World War II

You are correct, the Springfield State Fair has been held annually since 1945.

In 2019, the Illinois State Fair drew in 509,000 attendees, as reported by the IDOA.

Butler believed that achieving fairness could be possible through cultural isolation and restricted power.

Butler told the Chicago Sun-Times that he thinks there was a chance to handle the situation in a different way, but the governor’s team never allowed for those conversations to happen.