When was Video Gaming legalized?
Illinois legalized video gaming on July 13, 2009
What is Video Gaming?
Video slots and video poker played on Video Gaming Terminals approved by the State of Illinois. Real money can be played and won legally at licensed establishments.
What is a Licensed Terminal Operator?
A company licensed by the State of Illinois to own and operate the Video Gaming Terminals. Terminal Operators provide the Video Gaming Terminals to licensed establishments. Terminal Operators cannot own a licensed establishment, and licensed establishments cannot own the Video Gaming Terminals.
What is a Qualified Establishment?
Liquor licensed establishments, fraternal/veterans establishments, and truck stops. These qualified establishments must apply and obtain a location license for video gaming from the state.
Location License Application:
https://www.igb.illinois.gov/vla/
What are the requirements for an establishment to obtain a location license for Video Gaming?
1. Their municipality must be opt-in and allow Video Gaming
2. The establishment must maintain a valid liquor license issued by Illinois
3. A completed location license application must be submitted to the Illinois Gaming Board and approved
4. The applicant must undergo a background check and be fingerprinted by the IGB
5. Annual $100 fee must be paid
How does an establishment with a location license get Video Gaming Terminals?
1. Sign a Use Agreement (Contract) with a licensed Terminal Operator
2. Designate a Gaming Manager
3. Provide a safe/secure location for the placement of Video Gaming Terminals
a. http://www.ilga.gov/commission/jcar/admincode/011/011018000B02700R.html
b. http://www.ilga.gov/commission/jcar/admincode/011/011018000H08100R.html
4. No more than 5 Video Gaming Terminals may be placed in a single licensed establishment
5. Annual Video Gaming Terminal fees must be split equally between the establishment and Terminal Operator ($100 per VGT)
6. TERMINAL OPERATOR DOES THE REST!
What are the costs for the establishment?
1. Annual $100 location license fee
2. Annual Video Gaming Terminal fee must be split equally between the establishment and Terminal Operator ($100 per VGT)
3. Advertising specifically for the location
What happens to the profits from the Video Gaming Terminals?
The state mandates the allocation of the Video Gaming Terminal profits (or Net Terminal Income). The distribution, based on percentage, is as follows:
State Tax: 25%
Local Tax: 5%
Administrative Share: 0.7275%
Terminal Operator Share: 34.63625%
Establishment Share: 34.63625%
The Terminal Operator is responsible for distributing the tax payments, administrative share, and establishment share. The establishment share is directly deposited into a designated account monthly and a detailed report is provided.
Other important information:
IGB Policy on Inducements, Advertising & Promotions
https://www.igb.illinois.gov/FilesVideoLaw/20140702InducementAdvertisingPromotionalPolicy.pdf
For more information go to:
http://www.igb.illinois.gov
