Penny per play? Talk to Tom
A video gaming trade association has filed a legal challenge to Oak Lawn’s push tax, arguing that the first-of-its-kind tax on users of video slot and poker machines is unconstitutional, violates the Video Gaming Act and would be so costly and technologically complicated to implement as to make it impracticable.
The six-count lawsuit filed Tuesday by the Illinois Gaming Machine Operators Association and nine individual terminal operators seeks an injunction barring Oak Lawn from applying and enforcing its push tax and prohibiting it from collecting revenues from it.
3-4-3.1: PUSH TAX: Except as otherwise provided by this Chapter, an amusement tax is imposed upon any person who participates in the play of a video gaming terminal that takes place within the jurisdictional boundaries of the Village of Oak Lawn.
Over the past two years, some municipalities have adopted “Push Taxes” in an effort to raise additional revenue. Under these push tax ordinances, the tax is supposed to be paid by anyone who plays a VGT and is charged in the amount of one cent-per-play on a VGT.
On June 1, 2021, the Illinois House of Representatives passed SB 521. This legislation represents a gaming omnibus bill that, among other things, prohibits municipalities from adopting a “push tax.” The legislation further provides that any home rule municipality that has adopted an ordinance imposing such a tax on or before June 1, 2021, may continue to impose such a tax but may not increase, expand or extend the tax.
While IML is opposed to the preemption of municipal authority, IML’s position is neutral on SB 521 due to the varying impacts the legislation will have on municipalities. Included in SB 521 is an IML initiative to increase the annual video gaming terminal fee cap on non-home rule communities from $25 per terminal to $250 per terminal.
Video gaming trade association files lawsuit over Oak Lawn’s 'push tax,’ claims ordinance is unconstitutional | Chicago Tribune