Illinois Administrative Code › Title 11 - ALCOHOL, HORSE RACING, LOTTERY, AND VIDEO GAMING › Part 1900 - SPORTS WAGERING › Subpart J - ACCOUNTING, RECORDS, AND DATA › Section 1900.1040 - Wagering Tax

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				For the purposes of this Section, "wagering tax" means the tax assessment due
				pursuant to Section 25-90(a) of the Act. Each holder of a master sports
				wagering license is subject to tax and fee liability assessment under the
				Act.
b) Wagering taxes shall be
				paid via an electronic funds transfer system employing an Automated
				Clearinghouse Debit method (ACH-Debit). Each master sports wagering licensee
				shall maintain an account with sufficient funds to pay, in a timely fashion,
				all tax and fee liabilities due under the Act. The account shall be maintained
				at a financial institution capable of making payments to the State under the
				electronic funds transfer requirements imposed by the State.
c) The Administrator shall prescribe and make
				available to each master sports wagering licensee and manager forms,
				instructions and reporting requirements for taxes. Forms may be provided by the
				Administrator to master sports wagering licensees in computer-based format and
				include a computer program that, upon input by the licensee of requisite data,
				provides for the calculation of tax and fee reporting information and tax and
				fee liability.
d) The Tax and Fee
				Schedules must be filed with the Board no later than 12:00 noon on the due
				date. Wagering tax payments shall be transferred electronically on the due date
				to the Board's designated financial institution by the end of that financial
				institution's business day. For purposes of tax and fee schedules and tax and
				fee payments, the due date shall be defined as the last day of the month
				following the calendar month in which the adjusted gross sports wagering
				receipts were received and the wagering tax obligation was accrued.
e) The wagering tax imposed on the master
				sports wagering licensee shall be based on adjusted gross sports wagering
				receipts from sports wagering. Adjusted gross sports wagering receipts for a
				given month equal the total value of placed wagers the outcome of which are
				determined during that month, less the value of all winning wagers the outcome
				of which are determined that month, regardless of when the wager was placed or
				when the winning wager was redeemed, plus or minus any adjustments made. The
				wagering tax imposed on the master sports wagering licensee shall be 15% of
				adjusted gross sports wagering receipts.
f) Pursuant to Section 25-90(a-5) of the Act,
				the State shall impose and collect a tax of 2% of the adjusted gross receipts
				from sports wagers that are placed within a home rule county with a population
				of over 3,000,000 inhabitants. For the purposes of this tax, a wager is
				considered placed within the county if the patron is physically located within
				the county at the time the wager is placed.
g) Monthly Tax and Fee Schedules shall
				include all information necessary for adjustments and reconciliation of tax and
				fee liability and shall be subject to audit by the Board and its audit agents.
				Adjustments to previously reported tax and fee information shall be made by the
				master sports wagering licensee, except that no adjustment of $25,000 or more
				shall be made to previously reported adjusted gross sports wagering receipts
				without the prior written approval of the Administrator or the Administrator's
				designee.
h) In the event that a
				Tax and Fee Schedule properly reflects a net loss experienced by the master
				sports wagering licensee, an adjustment for the amount of any remaining net
				wagering loss (negative adjusted gross sports wagering receipts) shall be
				carried forward on the subsequent Tax and Fee Schedules until the loss is
				offset by net win (positive adjusted gross sports wagering receipts).
i) All Wagering Taxes paid pursuant to the
				requirements of the Act shall be deposited by the Board into the Sports
				Wagering Fund. On the 25th of each month, the Board
				shall transfer excess funds in the Sports Gaming Fund to the Capital Projects
				Fund.
j) Failure to Comply
1) A master sports wagering licensee's
				failure to comply with the provisions of this Section may subject the master
				sports wagering licensee to penalty and interest amounts pursuant to the
				Uniform Penalty and Interest Act [35 ILCS 735].
2) The Administrator is authorized to waive
				any penalty and interest for the late filing of a tax schedule or late tax
				payment, if the master sports wagering licensee can show good cause. "Good
				cause" shall include, but not be limited to, detection and correction of a
				deficiency in filing or payment that resulted from a documented inadvertent or
				unintentional error that was corrected within one business day after the
				applicable due date.
3) The master
				sports wagering licensee shall be notified by the Administrator in writing of
				any penalty or interest payable because of a late tax schedule filing or late
				tax payment.
4) The master sports
				wagering licensee may, within 10 business days after receiving the notice, file
				with the Administrator a written request for a waiver of any penalty or
				interest. The Administrator shall act on the request for waiver and notify the
				master sports wagering licensee in writing of the decision within 15 calendar
				days after receiving the request. If the Administrator fails to act within the
				15 day period, the waiver is deemed granted.
5) If the Administrator denies the request
				for waiver, the master sports wagering licensee may ask the Board for a
				hearing. The request for hearing must be in writing and filed not later than 15
				calendar days after receipt of the notice of denial. Section
				1900.110(b)
				does not apply to such a request.
6) Except as provided in this subsection (j),
				the provisions for hearings under Subpart H shall apply to any hearing
				conducted under this Section. The licensee has the burden of showing good cause
				by clear and convincing evidence.