Red Carpet Rewards, by Prairie State Gaming

View Original

The CCS Fee Increase and How it Impacts You as a business owner

Effective January 1, 2024, the central communication system fee for the state of Illinois' VGT Industry increased from 0.8513% to 0.92%.

The fee increase is the result of a new contract entered into between the IGB and the central communication system provider, Light & Wonder (“L&W”). The term of this contract is for 2 years and, therefore, runs through December 31, 2025.

Because Terminal Operators and Licensed Video Gaming Establishments share equally in the payment of this fee, this increase will impact NTI allocations.

The VGT industry did not participate in negotiating this fee increase.

Information regarding the fee increase was first announced on January 9th during the regularly scheduled bi-weekly calls between industry representatives and the IGB. Reportedly, a large determining factor for the renewal and increase was due to caution exercised to avoid any disruption in service to the IL Video Gaming industry, resulting in large financial loss to the state and private industry.

The reports issued by L&W reflect this increase as of January 1, 2024. The updated splits are reflected below. Please feel free to reach out if you would like to discuss what this means or have any additional questions.

Establishments: 32.53985%

Operator: 32.53985%

State: 34%

Municipality: 5%

Light & Wonder (LNW): 0.92%