St. Charles again delays push tax on video gaming terminals

While statewide litigation plays its hand, the city of St. Charles is again deferring the imposition of a push tax on video gambling terminals.

Dating back to 2022, when the City Council first passed an ordinance to preserve the right to enact a penny-for-push tax on video gambling, the city consecutively has delayed the move as multiple lawsuits across the state play out.

“Because there is still pending litigation regarding the city’s ability to actually impose this type of tax, we have extended out the imposition of this tax and the date for it to take effect several times,” City Administer Heather McGuire said during a Dec. 1 meeting. “At this time, the litigation is still not resolved.”

The council later agreed to defer the push tax to Dec. 31, 2026.

The extra time is designed to provide clarity to the “lack of regulatory guidance and pending litigation that creates uncertainty about how the tax may be imposed,” according to city documents.

The city previously has said it expects to rake in around $300,000 annually from the push tax.

Across Illinois, gamblers spent $33.6 billion in 2024 playing the gambling machines, according to the Illinois Gaming Board.

The tax is designed to be passed on to users of the terminals, not to be a tax on operators, according to city documents.

The local ordinance permits the operators to “determine how to collect the tax from the users.”

During a previous meeting, Alderman Ryan Bongard said he opposes the tax because he doesn’t want it passed onto the users and ultimately to the businesses if the users take their money elsewhere.

Alderman Bryan Wirball said he supports the tax because it saves the city from having to make up that amount of cash from less desirous places.

While deferred, the ordinance remains adopted but will not be enforced.