Thursday, June 11, 2009

Well it's a little hard to tell what bill is the Video Gaming bill

But if it is HB2424 then here are a couple of thoughts....
In amendment one of the bill there are a few things that I notice (starting at page 74 of the PDF)

To my commenter about my thoughts about how to 'game' the system here is what I see as the definition of a "Licensed fraternal establishment" (pg 73~73) of the PDF

"Licensed fraternal establishment" means the location where a qualified fraternal organization that derives its charter from a national fraternal organization regularly meets.


I don't see anything about a 5 year history. Also I may be reading this really wrong but it seems to me that this might include college fraternities and sororities..


But reading the law some more I found what I think is the most interesting part (page 87)

Of the after-tax profits from a video gaming terminal, 50% shall be paid to the terminal operator and 50% shall be paid to the licensed establishment, licensed truck stop establishment, licensed fraternal establishment, or licensed veterans establishment.


Doing some quick rough math assuming that $840 is bet per machine per day with a 80% payout (70 plays per hour over 12 hours and the 80% seems to be the minimum payout, see pg 74) when all is said and done after taxes and the 50/50 split you are looking at about a net of $294 if you are a facility with 5 machines (or close to 100K a year if they are played virtually every day)

However if you are a terminal operator with 1000 machines you net about 58,800 a day (note it appears no operator can have more than 5% of the machines in the state, so the 1000 number would be the high end in my logical guess) or about 17.6 Million in a given year...

Or just imagine 100 machines (lets say every machine that Aurora or Naperville may end up with, it only takes 20 establishments to get to that number) that 5,880 a day roughly 1,764,000 a year. Still not bad.

More to come

OneMan

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