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IL video gambling parlors sue state over profit-sharing rules

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vixen777

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Illinois nearly 6,000 video gambling parlors could reinvest more in their businesses, including making their operations more consumer-friendly,
if they weren't required to evenly split their profits with the companies that operate the terminals,
according to a lawsuit filed Tuesday against the Illinois Gaming Board.

Video gambling has continued to grow since its 2012 debut in Illinois, but the state's Video Gaming Act "places a disincentive on local establishments to
improve their consumers' video gaming experience," says the lawsuit,
filed in Cook County Circuit Court by the two companies that own the Dotty's Cafe, Stella's Place and Shelby's gambling parlor chains.


The way the law is set up also costs the state much-needed tax revenues, two lawyers representing Laredo Ventures and Illinois Cafe & Services said. Video gambling revenues,
after payouts to winners, are taxed at a flat 30 percent rate, with 25 percent going to the state and the other 5 percent going to the local municipality.
The remaining 70 percent of revenue is divided evenly between the establishments and the terminal operators.

If the parlors didn't have to share such a big percentage of their profits with the terminal operators, the establishments could upgrade current operations,
hire staff, expand or promote their businesses, all of which would help to generate additional revenues and more taxes to the state,
said Winston & Strawn lawyers David Dahlquist and Dan Webb, a former U.S. attorney.



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