Illinois VGT Financing News – January 2011 News Letter
Burr Ridge, IL (PRWEB) January 27, 2011
The Funding Stop News Wire – January, 2011
NEWS THAT MATTERS
Springfield:
Income Taxes: There was no lack of fireworks in Springfield last week. Both corporate and individual tax rates in Illinois were raised. Not a surprise given the fact that Illinois inability to reduce spending created a $ 13 billion annual budget deficit. Illinois is behind paying bills by an estimated $ 8 billion. Illinois financial turmoil led investors to drive up interest on Illinois debt to the (infamously) highest in the nation and in fact many investors began to shun Illinois debt for fear of default.
Gaming Expansion: After much controversy and negotiation, a bill to expand gaming in Illinois was not brought to the House for a vote. The bill called for expansion in three main areas:
1.) Expand gaming positions in current casinos from 1,200 to 2,000
2.) Allow four new casino licenses, including one in Chicago
3.) Allows approximately 800 VGTs in each of Illinois 5 current horse tracks
While the bill was approved by the Illinois Senate, it was never brought to the House for a vote. Without House approval the bill will remain pending.
VGTs should roll out in Q3:
We continue to hear that VGTs in liquor licensed establishments will hit the streets in Q3 2011. Milestones to keep an eye on [dates we hear in brackets]:
1. Signing of central system contract. Since it will take six months to build out the central system, look to the earliest date for games on the street to to be six months from the signing of this contract (not the awarding). [sign 3/1/2011]
2. Licensing of manufacturers and distributors [1/31/2011]
3. Licensing of operators [3/31/2011]
4. Liquor licensed establishment applications available [2/28/2011]
Achievement of these tight date schedules should indicate movement toward a summer rollout. Missing these deadlines could mean a Q4 or 2012 rollout.
Terminal Operator Financing:
The Illinois Gaming Board (IGB) will apparently be asking where Operators plan to get their money, exactly. One obvious concern in Illinois gaming is keeping the notorious out of legalized gaming. Therefore, plan on getting your financing lined up as soon as possible.
The Funding Stop (TFS) is a great choice. What differentiates TFS from others is flexibility. You will not be locked into one game manufacturer, TFS finances all major brands. TFS is backed by a large NY private equity firm. TFS will finance all equipment in your establishments, including the bank (to payoff winnings), furniture, buildout, site controller, security and other necessary equipment. Dont dismiss these costs, as they most likely account for one-third or more of the cost to get an establishment up and running. You need to ask yourself, who is going to write the check for one-third of the cost to get your sites up and running?
For further information concerning The Funding Stop, LLC visit our company’s website at http://www.thefundingstop.com or to start the financing process Contact Matt Scales at 630.320.3164 – matt(dot)scales(at)thefundingstop(dot)com.
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