The Video Gaming Act was enacted on July 13, 2009. The Act legalizes the use of Video Gaming Terminals in some licensed Illinois liquor establishments which are also licensed for one-premise consumption, certain licensed veterans and fraternal organizations and licensed qualifying truck stops.
The Illinois Gaming Board (IGB) has regulatory authority over all gaming operations governed by the Act. In addition, local municipalities and county boards overseeing unincorporated areas may opt-out from allowing their eligible local businesses from participating. For allowing their qualified local businesses to participate these local governments will receive a 5% tax on all profits generated from the legal terminals.
The State of Illinois will receive 25% of all profits generated from the terminals to be used as a major funding component of the $31 Billion capital construction program named "Ilinois Jobs Now". In addition to the tax rates, the State will also receive millions of dollars in application and licensing fees which are renewed on an annual basis.
The Act, along with rules established by the IGB, includes considerable safeguards to ensure the integrity of the system and businesses and individuals that would be participants.
Summary of the Illinois Video Gaming Act by Shefsky & Froelich