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SB 1809

VIDEO GAMING-LOCAL SHARE

104th Regular Session Introduced by Willie Preston

For Chicago and other large cities, 73.33% of terminal income goes to the Capital Projects Fund and 26.67% to a new Local Government with >2,000,000 Residents Distributive Fund.

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Bill Summary · SB 1809

Summary — SB 1809 (VIDEO GAMING — LOCAL SHARE)

Status: Enacted (Governor-signed 5/13/2025). Effective date: September 1, 2025.

Main purpose

SB 1809 amends the Video Gaming Act and the State Finance Act to create a separate, dedicated distributive fund for local governments in municipalities with populations greater than or equal to 2,000,000 and to change how video gaming tax receipts generated in those large municipalities are allocated.

Key provisions

  • Retains the existing 30% tax on net terminal income collected by the Illinois Gaming Board.
  • Adds a new distribution rule (230 ILCS 40/60(a-10)) for terminal income generated in municipalities with population ≥ 2,000,000:
    • 11/15 (≈73.33%) of that tax is deposited into the Capital Projects Fund.
    • 4/15 (≈26.67%) is deposited into a newly created Local Government with Greater than 2,000,000 Residents Video Gaming Distributive Fund.
  • Leaves distribution for smaller municipalities (population < 2,000,000) under the existing structure (as amended elsewhere in the Act): generally 1/6 (≈16.67%) to the Capital Projects Fund and 5/6 (≈83.33%) to the Local Government Video Gaming Distributive Fund.
  • Confirms that additional temporary taxes imposed in prior years (an additional 3% beginning July 1, 2019; additional 1% beginning July 1, 2020; and additional 1% beginning July 1, 2024) continue to be deposited into the Capital Projects Fund.
  • Amends Section 75 of the Video Gaming Act to establish the separate monthly allocation and certification process for the new fund; the Department of Revenue certifies allocations and the Comptroller pays the amounts.
  • Adds a new fund to the State Finance Act: "Local Government with Greater than 2,000,000 Residents Video Gaming Distributive Fund."

Who is affected

  • Municipalities with population ≥ 2,000,000 — in practice, this targets the State’s single jurisdiction meeting that threshold (City of Chicago).
  • Other municipalities and counties remain covered by the existing Local Government Video Gaming Distributive Fund.
  • Video gaming terminal operators and licensed establishments, since allocations are tied to terminal income generated in particular municipalities; tax collection and reporting obligations remain in place.

Procedural/timeline notes

  • SB 1809 passed both chambers, was signed by the Governor on May 13, 2025, and becomes effective September 1, 2025.
  • The Department of Revenue will certify monthly allocations; overpayments can be reclaimed and withheld from future payments per existing mechanics in the Act.

Practical impact

  • For video gaming revenue generated within the ≥2,000,000-population municipality, a larger share is directed to the statewide Capital Projects Fund (11/15) and a smaller, separate share (4/15) is routed into a municipality-specific distributive fund — changing how much flows into the statewide Local Government Video Gaming Distributive Fund versus local use for the large city.

Compiled from official sources — confirm details with the bill’s official record.

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