The Illinois Gaming Board has said that lawmakers in the US state need to change a law they enacted earlier this year if they ever hope to see a casino developed in Chicago.
That vote came in response to a feasibility study released in August that said such a casino would not be feasible given the “onerous tax and fee structure” that lawmakers imposed.
Before lawmakers passed a massive gambling expansion bill this year, Illinois allowed up to only 10 riverboat casinos. Those casinos pay taxes to the state ranging from 15 to 50 per cent of their adjusted gross receipts.
Under the gambling expansion bill enacted this year, lawmakers authorised six more land-based casinos, including one in Chicago. However, in addition to the taxes and fees that all casinos pay, the Chicago casino will be required to pay an additional 33.3 per cent “privilege tax.”
That will bring the effective tax rate on a Chicago casino to roughly 72 per cent, the report stated.
