O'Fallon delays implementation of video-gaming "push" tax while state guidance remains limited

O'Fallon — The Finance Committee reported that implementation of a local per-play "push" tax on video gaming machines remains on hold after the Illinois Gaming Board declined to provide guidance on how to collect the levy.

Sandy, city finance staff, told the committee the ordinance authorizing the tax was passed in October 2021 but implementation was delayed while lawsuits between municipalities and gaming operators were pending. Recent court rulings favored municipalities, but the Illinois Gaming Board told the Illinois Municipal League (IML) it would not provide technical guidance for implementation or enforcement.

"They do not have any obligation or jurisdiction under the act to participate in the implementation or enforcement," Sandy said, summarizing the Gaming Board's response to IML. The city and IML are developing a plan B for implementation; at present, Sandy said officials do not know how much revenue the tax will generate. Staff estimated a preliminary figure "around $100,000, maybe," and emphasized the estimate is uncertain.

The tax is calculated by the number of "pushes" on a gaming machine (each button press is a push) and is collected as a small per-push fee. Sandy said machine-level reporting and cooperation from gaming operators will be required; the Gaming Board declined to provide standardized technical instructions. IML is working with municipalities to produce implementation guidance and the city will await those recommendations before taking further steps.

No vote was taken; the committee received the update and will revisit implementation once the city and IML have clearer guidance.