Push Comes To Shove Over Oak Lawn’s VGT ‘Push Tax’

On January 1, a video gaming terminal( VGT ) & ldquo, or push tax & rtquo ), went into operation in Oak Lawn. It would be an understatement to say that it & rsquo, s caused controversy.

Gamblers in Illinois are required to pay a coin drive tax each time they use a gambling machine. In late July, the village of Oak Lawn issued fines to 13 Video Gaming Terminal (VGT) operators for not submitting the forms required by the city’s ordinance.

In response, the providers are acting similarly.

Push duty problems

The terminal operators are represented by the Illinois Gaming Machine Operators Association, which contends that the push tax infringes on the Video Gaming Act’s prohibition of player tracking. The association also states that the ordinance would be expensive and challenging to implement from a technological standpoint.

Kim Walberg, a lawyer for the terminal operators, stated at a July 15 hearing, “My perception is that not all terminal operators possess the capability to perform this task. We simply lack the ability to do what you’re requesting.”

However, Rick Meitzler, president and CEO of entertainment equipment manufacturer Novomatic Americas Sales, contradicted Walberg’s testimony, at least on that point.

Each time a handle is pulled, we take measurements. Inside each machine, it’s the responsibility of the system or state to retrieve that data.

A week following the trials, 13 operators were fined $500 by Mayor Sandra Bury. She alleges that a vital part of Walberg’s event fails to maintain a certain standard.

I don’t think they will achieve much success because their own expert debunked their entire argument during the push tax hearing.

Push revenue is meant to balance the budget.

The Illinois Gaming Board (IGB) reports that the 200 slot machines in Oak Lawn’s bars and lounges generated nearly $15 million last year. The state’s new gaming law dictates that the state and local governments must divide a 33% tax on gross revenue from the Video Gaming Terminals (VGTs).

Nevertheless, 83.3% of this sum (which is nearly $5 million) goes to the state of Illinois, leaving Oak Lawn with under $1 million. Therefore, to boost community revenue, the drive tax was implemented.

The Chicago Tribune reported that there were expectations of generating about $1 million this year before COVID-19 disrupted plans.

Bury stated about the terminal operators, “We don’t aim to bring them to their knees. However, we want to ensure we can provide service to our citizens.”

Push revenue is also approved by Waukegan City Council.

Waukegan will also implement a push tax that was approved in April, as local governments grapple with raising funds in the aftermath of COVID-19.

Alderman Greg Moisio expressed to the Tribune his concerns, although he appeared somewhat pessimistic. He said, “We are uncertain about the duration of this situation, the number of businesses that may not resume operations, the loss in tax revenue, and a potential major reduction in our income tax share from the state of Illinois.” He added, “We have no idea about the total revenue we’re going to lose.”

Firms in Waukegan are regressing, just like in Oak Lawn.

Alderman Keith Turner stated that he received a letter from 30 enterprise users objecting to the income. The email in question outlines the extent of the adverse effects already inflicted on their businesses by the COVID-19 pandemic.

It’s important to bear in mind that the tax is levied on VGT providers, not the companies themselves. There might be a misunderstanding among business owners or fears that the revenue would deter bettors.

Springfield passed regulations outlawing such a duty.

State Rep. Bob Rita introduced regulations to prohibit laws similar to the force tax. However, Bob Long, Waukegan town attorney, doesn’t believe it will gain traction. Huge commented:

The proposal is currently before the legislature, and honestly, I haven’t heard any updates on its progress. Its fate will be determined by the General Assembly in Springfield when they reconvene. However, I’m unsure when that meeting will take place.

Should that be the situation, an increasing number of locations may attempt to implement a force tax. Intriguingly, local governments might be keeping an eye on the happenings in Waukegan and Oak Lawn.