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Municipal video gaming revenues down in 2020

The suspension of video gaming operations are taking a toll on tax revenues for local municipalities throughout the State of Illinois. 

Due to the COVID-19 crisis, video gaming operations were suspended from March 16,  to June 30, 2020.

According to the Commission on Government Forecasting and Accountability’s September report, state-related tax revenues generated from casinos, video gaming, lottery, horse racing, and recently enacted sports wagering fell 13.4-percent in FY 2020 from $1.4 billion to $1.2 billion. 

Although the video gaming suspension was lifted on June 30, gaming has only returned on a limited basis and it remains unclear how long these limitations will last.  

Declines in local tax revenues from video gaming can also be seen throughout East Central Illinois. In 2019, Mahomet received $46,622.33 in video gaming taxes; so far in 2020, $19,937.54 in taxes have been collected.

Oakwood, which received $86,603.86 in 2019 video gaming taxes has collected $42,667.80 so far in 2020.

Ogden collected $39,497.06 in video gaming taxes in 2019; in 2020, $15,620.83 have been collected so far.

Statewide, the casino industry was hardest hit. 

“Adjusted gross receipts (AGR) from Illinois’ ten operating casinos fell 30.0-percent from $1.347 billion in FY 2019 to $943 million in FY  2020. The $195 million in transfers to the Education Assistance Fund coming from Illinois’ casinos in FY 2020 are well below the near $700 million that were transferred a little over a decade ago,” the Commission on Government Forecasting and Accountability report said. 

Over 36,000 video gaming terminals were in operation at the end of FY 2020 (June 30). The report noted that this has created more competition for the casino industry, thereby causing a falloff in the casino’s attendance and revenue figures. 

“However, despite this recent downward trend in casino numbers, when combining Illinois’ casino and video gaming figures, the amount of dollars spent on these gaming formats, prior to the pandemic, had increased every year since video gaming commenced, growing from $1.641 billion in FY 2012 to a high of $2.940 billion in FY 2019,” the report said. 

Still, the pandemic significantly impacted both casino and video gaming figures in FY 2020.

“Despite the increase in the number of terminals allowed per location (from 5 to 6 at non-truck stop locations and from 5 to 10 at qualified truck stops) and an increase in betting limits, the amount of net terminal income from video gaming terminals throughout the State fell from $1.593 billion to $1.223 billion – a decline of 23.2-percent. Combined with the 30-percent drop in AGR figures from the casinos, receipts from these gaming sources fell 26.3-percent from $2.940 billion to $2.165 billion. Still, even when accounting for these recent virus-related declines, the totals in FY 2020 are considerably higher than the amounts generated in FY 2012 without video gaming,” the report said. 

The Illinois lottery continues to be the largest source of state gambling revenues. 

With customers staying at home in the late spring/early summer months, Lottery sales fell 5.8-percent in FY 2020 from $2.977 billion to $2.805 billion. 

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