Communities Differ On Video Gambling

Illinois communities take different approaches to video gambling, which has been legal since 2011. Rockford aldermen are considering how to control the proliferation of businesses with video gambling. In Crystal Lake, a business group asked the city council to lift the ban on the games. In Batavia, aldermen recently voted 8-6 to keep its ban in place.

When the Illinois Supreme Court upheld the constitutionality of the Illinois Video Gaming Act in 2011, the law communities throughout the state the option to allow the games or not. Now video gambling has boomed in Illinois, bringing additional revenue—and controversy. And numerous villages, towns, cities and counties still are grappling with how to address the issue, which permits licensed bars, truck stops, social clubs and veterans’ organizations to offer up to five gaming machines each.

In Rockford, restaurateurs and twin brothers Phil and Benny Salamone plan to invest $250,000 in a vacant building on Charles Street to turn it into Caesar’s Place Coffee and Slots, the city’s 81st business with video gambling. The combo coffeehouse and gaming parlor would join two other gaming establishments, Slots of Fun and the private Navy Club of Rockford, on the street. It all depends on whether the city grants the business a liquor license; the state issues gaming permits to businesses that have a permit to sell alcohol. Said Phil Salamone, “I do understand Rockford’s concerns. I hope they take into consideration that we’re improving the city by spending a couple hundred thousand dollars to make this into a brand new building.”

Determining which Rockford business gets a liquor license or not has not been based on defined guidelines. Several aldermen have said specific rules need to be established. The previous city council made the attempt but could not reach agreement. Between January 1 and July 31, Rockford gamblers lost a total of $11.9 million at video gambling machines, which generated $600,000 in gaming tax revenue for the city.

Alderman Frank Beach said, “I am opposed to the video gambling ordinance because of the amount of money it’s taking out of this community and out of the pockets of the people who can least afford it. It’s counterproductive, especially when we’re trying to transform this community and help people break any poverty cycle that’s there and help people get back up on their feet.”

Alderman Tom McNamara agreed and said he won’t vote for any new business to get a liquor license if most of its revenue comes from slots.

“I see them draining dollars from our community that we need for other shopping centers and I don’t buy the argument that that money is going to leave us anyway,” he said. McNamara added the city should consider spending gaming tax revenue on economic development and scholarships instead of capital purchases.

Alderman Kevin Frost added he wants to change gaming parlor signage. “They’re everywhere. I’m not opposed to drinking or gambling, per se, but I’m just so sick and tired of seeing the signage everywhere. It just doesn’t give folks a good vibe when they drive into Rockford,” Frost said.

Jay Gesner, who owns four businesses with gaming machines, said, “In my opinion, these things are keeping a lot of money in town that would go to Elgin, or Ho-Chunk or another casino. All these people didn’t start gambling because we opened parlors. It’s just that we brought it more local and we’re keeping tax money local.” Jane Femminella, owner of the Canine Crunchery on Charles Street, added that Caesar’s “will give people another reason to stop in this Charles Street corridor. I’m excited about that. It’s going to beautify this area.”

East of Rockford in the Chicago suburb of Crystal Lake, a group of bar and restaurant owners who want to offer video gambling recently presented a petition to the city council asking them to hold a public hearing on the issue in October. Paul Leech, who owns the Cottage, said, “The whole contention is that it will have a negative influence, when in reality it hasn’t had that” in Algonquin and Lake in the Hills, communities that have allowed video gambling. “It’s brought income to the city and businesses,” he said. The business owners group said video gambling income could help them update and repair their facilities.

Leech said, “If the general public in Crystal Lake don’t want it, that’s fine, I’ll live with it. But to be honest, I don’t think they care either way. If we have an open meeting, anyone who is vehemently against it would show up. I would listen and go with the majority, but we haven’t got to that point.”

Crystal Lake Mayor Aaron Shepley said no city council members have as yet directed staff to put the subject on a future agenda, no council members have discussed Leech’s request that he’s aware of.

South of Crystal Lake in Batavia, the city council recently voted 8-6 to reject lifting the city’s five-year-old ban on video gambling. Officials from the Batavia VFW had asked the city council to reconsider its anti-video game position. Alderman Michael O’Brien, voting to lift the ban, said, “I don’t think it is a moral issue, it is a personal choice. I would support it just to support our VFW, if anything.”

Alderman Nick Cerone said, “I was supportive of the city looking into this, but the more I got into the information and weighed the benefits against the potential socio-economic cost to the community, I was not supportive of this.”

Batavia Mayor Jeff Schielke said he could not support lifting the ban because the proper controls to monitor video gambling are not yet in place. “I think we are running this thing by a wing and a prayer,” Schielke said.