For more detailed information including Illinois law references,
please see the Department of Revenue web site.
Bingo Tax and License Fees
The tax is imposed on the privilege of conducting bingo games. Annual license fees are imposed on operators, providers, and suppliers of bingo games.
To operate a bingo game, the organization must
- be licensed by the state;
- be a licensed bona fide religious, charitable, labor, fraternal, youth athletic, senior citizens’, educational, or veterans’ organization in Illinois;
- operate without profit to its members;
- have been in existence in Illinois continuously for a period of five years immediately before applying for a license; and it must have a bona fide membership engaged in carrying out its objectives during that entire five-year period.
Note: The five-year requirement is reduced to two years when it is applied to a local organization that is affiliated with and chartered by a national organization that meets the five-year requirement.
Charitable Games Tax and License Fees
The tax is imposed on the gross proceeds of charitable games. Annual license fees are imposed on operators, suppliers, and providers of such games.
Fourteen games are permitted: bang, beat the dealer, big six, blackjack, chuck-a-luck, craps, five-card stud poker, gin rummy, hold-em poker, keno, merchandise wheel, poker, pull tabs, and roulette. Profits from the games must be used to support the organization’s goals, such as charitable work or education. A licensed organization may hold up to four charitable game events per year.
For a group to be eligible to conduct charitable games, it must be a
- religious, charitable, educational, veterans’, fraternal, or labor organization;
- have been in existence for at least five years;
- operate without profit to its members;
- and already be exempt from federal income taxation under Internal Revenue Code, Section 501(c)(3),(4), (5), (8), (10), or (19).
Note: Veterans’ organizations that are eligible to hold a bingo license are also eligible for a charitable game license without regard to federal tax status.
Pull Tabs and Jar Games Tax and License Fees
The tax is imposed on the gross proceeds of pull tabs and jar games. An annual license fee is imposed on operators, suppliers, and manufacturers of pull tabs and jar games.
To sell pull tabs or conduct jar games the organization must
- be licensed by the state;
- be a licensed bona fide religious, charitable, labor, fraternal, youth athletic, senior citizens’, educational, or veterans’ organization in Illinois;
- operate without profit to its members;
- have been in existence in Illinois continuously for a period of five years immediately before applying for a license; and it must have a bona fide membership engaged in carrying out its objectives during that entire five-year period.
Note: The five-year requirement is reduced to two years when it is applied to a local organization that is affiliated with and chartered by a national organization that meets the five-year requirement.
Racing Privilege Tax
The Racing Privilege Tax is imposed on every person, association, or trust conducting the pari-mutuel or certificate system of wagering. The Illinois Racing Board determines the amount of tax to be collected. Each of the state’s seven racetrack organizations (four in Cook County and three downstate) is allowed to have two offtrack betting (OTB) outlets. Cook County’s OTB outlets cannot be within 5 miles of an existing track or more than 90 miles from the sponsoring track. Downstate OTB outlets cannot be more than 135 miles from the sponsoring track. OTB outlets cannot be located near existing churches, schools, and residences.
Riverboat Gambling Taxes and License Fees
The Illinois Gaming Board regulates the riverboat gambling industry in Illinois. It conducts background investigations on applicants, approves owners, and issues licenses to employees of owners, and suppliers. The board oversees the licensees’ operations for compliance with the Illinois Riverboat Gambling Act and adopted rules. The board also conducts audits of casinos’ internal control systems and financial records. In addition, the board is responsible for collecting all gaming and admissions taxes, penalties and fees.
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