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One place to look for capital plan cash
Monday, Nov 26, 2018 - Posted by Rich Miller
The report is here. * That $1.4 billion is called Net Terminal Income. It’s the difference between what is bet and what is won. Of the NTI, 30 percent is taxed by the state, with one-sixth of the state’s take going to the municipalities. The rest, close to $1 billion in this instance, is split equally between the video gaming establishments (bars, truck stops, etc.) and the video gaming terminal operators. Terminal operators own the machines, place them, service them, collect the money, etc. They have significant overhead, but I can’t imagine it’s anywhere near a half a billion dollars a year. If we’re looking for capital plan money, then increasing the state’s tax rate on that pot of terminal operators gold might be worth looking at, along with increasing the rate on establishments that have more than a couple/tree locations. Leave the mom and pop neighborhood spots alone. Focus on the big chain establishments and the major terminal operators. Then again, they’ll be the ones with the most lobbyists.
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- 47th Ward - Monday, Nov 26, 18 @ 4:18 pm:
Given the expected $3 billion needed just to balance the budget as-is, I think we’ll see a hike in this tax as well as a bigger gaming bill to emerge. This is the time to get slots at tracks, more gaming positions at existing casinos, and 3-4 new casinos, one in the south burbs, one at the Wisconsin border and one in Chicago (a big one). If the truck stops, Veterans Halls and mom and pop places are bringing in north of a billion, we should see if we can double that by adding new positions.
There are lots of problems with relying on gaming revenue, and a huge bill will be difficult to pass (although probably easier than a small bill), but if we’re going to have gaming, let’s do it right.
Let the tracks and boats bid for the new positions and give Chicago a bigger take of a city casino. It’s a smart bet.
- DuPage Saint - Monday, Nov 26, 18 @ 4:18 pm:
Yes and although I don’t know if it would increase revenue or if the amount of gamblers is just split between venues put slots in airports and st race tracks. Then figure out sports gambling before Indiama does it.
- Chris Widger - Monday, Nov 26, 18 @ 4:26 pm:
You just had a post today cheering on lobbyists for the rental car industry. You can’t have it both ways. Either lobbying is a necessary evil (which is another way of saying that some people’s lives don’t matter), or it’s toxic and should be combated and shouted down at every turn. Pick a lane.
- Rich Miller - Monday, Nov 26, 18 @ 4:34 pm:
Widger, that was the dumbest thing you’ve ever posted here and that’s really saying something.
I never cheered on the car rental lobbyists. And your demand that I choose between “they’re evil” and “they’re toxic” is ludicrous.
- Just Me - Monday, Nov 26, 18 @ 4:39 pm:
I was going to comment on Widger’s ridiculous comment, but Rich beat me to it.
Reporting what someone is doing (or not doing) is just reporting.
- Annonin' - Monday, Nov 26, 18 @ 4:57 pm:
Wow. Capt fax a little touchy. Cheering should be confused with dimissing the notion that the rather modest campaign donations were a big factor in the decision making — which is probably true.
However there does seem to be a dearth of info on the actual scope of the opponents to the bill. GM subsidary, how many cars does a sharer own, etc.
But if I am the lobbos we know there is always next year.
- Al - Monday, Nov 26, 18 @ 5:57 pm:
At the same time we could reduce the revenue point where the State’s top gaming tax rate kicks in at $200 million and drop that down to $2 million. The 50% tax rate is far too low; think 90%. For too long the Casino industry has not paid a fair share into the Common School fund. Casino license owners export our money and jobs to New Jersey and Nevada.
- Generic Drone - Monday, Nov 26, 18 @ 6:44 pm:
Tax campaign contributions.
- My New Handle - Monday, Nov 26, 18 @ 6:59 pm:
I like Drone’s 6:44 comment, though that may seen as taxing freedom of speech.
- wordslinger - Monday, Nov 26, 18 @ 7:11 pm:
–If we’re looking for capital plan money, then increasing the state’s tax rate on that pot of terminal operators gold might be worth looking at, along with increasing the rate on establishments that have more than a couple/tree locations.–
Absolutely. The “overhead” for scooping cash from rigged machines that never call in sick, don’t need benefits, etc., can’t be that heavy.
I doubt any terminal operators will join Katrina’s Illinois Exodus is the split is adjusted.
- Iroquois County Dem - Monday, Nov 26, 18 @ 7:24 pm:
The city of Chicago has never opted in to video gaming,that’s a pretty significant amount of untapped revenue right there
- wordslinger - Monday, Nov 26, 18 @ 8:47 pm:
–The city of Chicago has never opted in to video gaming,that’s a pretty significant amount of untapped revenue right there–
Forest Park, which has slots, just narrowly voted them out.
That’s going to sting on Madison Street, between Harlem and Des Plaines. For decades, Forest Park made its money on dry River Forest and relatively dry Oak Park.
Oak Park took the lid off restaurant liquor licenses a few years ago. Dozens of new competitors in the market.
Slots have been keeping some of my favorite water holes alive.
- Shemp - Monday, Nov 26, 18 @ 11:56 pm:
Couldn’t agree more. Everyone thinks local government is making a killing. The operators and owners are.