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League Opposes New Video Gaming Tax

September 9, 2009

ISSUE: Gambling and Fiscal Policy

On July 13, 2009, the State of Illinois enacted the Video Gaming Act legalizing the use of video gaming terminals in specific locations in order to provide money for the state, presumably to help cure our fiscal ills. The LWVIL opposes the use of gaming as a solution to Illinois’ fiscal problems because:

  • It does not provide stable revenue that can reliably fund state services and programs;
  • It disproportionately impacts those with lower incomes; and
  • It is an excuse to avoid long-term solutions as Illinois’ fiscal health continues to decline.

LEAGUE POLICY:

Based on the state Fiscal Policy position, the League of Women Voters of Illinois opposes gambling as a solution to Illinois’ fiscal problems.  Gambling revenue has low natural growth potential.  It does not contribute to the ability of the state revenue system to capture and reflect long-term economic growth or to provide stable funding for state services and programs. Gambling is a regressive approach to raising revenue, disproportionately impacting those with lower incomes, and does not improve the overall progressivity of Illinois’ revenue system.  It is used as a stop-gap measure to shore up lagging revenue growth and one more excuse for lawmakers to avoid long-term solutions while Illinois’ fiscal health continues to deteriorate.  (Excerpt from LWVIL Board Handbook: " Gambling: No Cure For State's Fiscal Ills," April 1999.)

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