Thursday, April 10, 2003
Copyright © Las Vegas Review-Journal
Illinois governor proposes tax boost on gaming
GAMING WIRE
Illinois Gov. Rod Blagojevich on Wednesday laid out a bare-bones state budget that included plans to increase the incremental gaming tax to 70 percent from 50 percent.
Illinois already has the nation's highest gaming tax rate of 50 percent, trailed by Indiana with 35 percent.
The governor's budget calls for increased taxes on existing casinos, the sale of the state's 10th riverboat gambling license, moving special funds back into the general revenue fund and including a 20 percent windfall surcharge on corporate earnings.
A spokesman for Harrah's Entertainment Inc. which operates two riverboats in Illinois called the proposal "pretty shocking."
"The governor says the sale of the 10th license is worth $350 million, but analysts say it would be worthless. Who would bid on a license that would allow the government to take 70 percent of your gross revenues?" he said.
Blagojevich told the Legislature he would veto any budget bill that increases the state income or sales taxes and also veto any measure that cuts education or public safety spending.
