Illinois Benefiting From Video Gambling

Since the first 61 video gambling machines were installed in Illinois in September 2012, the industry has grown to more than 13,300 machines statewide, generating more than $90 million in state and local tax revenue. Through July, nearly 18,000 machines generated about $104 million. If the trend continues, the year-end tax revenue total could top $180 million.

As some Illinois communities seek ways to regulate the spread of video gaming, others consider the young industry a success story. Video gaming was approved by the state legislature five years ago and after some lawsuits and other glitches, the machines began appearing in September 2012. The first 61 machines produced about ,000 in state and local tax revenue. But by the end of 2013, according to the Illinois Gaming Board’s 2013 annual report, more than 13,300 machines across the state generated nearly .2 million in tax revenue. “Video gaming in Illinois has proved to be both a regulatory and technical success, as well as an important adjunct to state revenues,” the annual report states.

2014 is shaping up to be even more successful, said Michael Gelatka, president of the Illinois Gaming Machine Operators Association. Through July, gaming board numbers indicate nearly 18,000 machines have generated about $104 million, surpassing last year’s total in slightly more than six months. At this pace, state and local tax revenue generated by the games could exceed $180 million by the end of this year.

Gelatka said, “Our partnering bars, restaurants and veterans or fraternal clubs are using the new revenue to start to recover from years of financial hardship. There is a renewed hope on Main Street Illinois that people are ‘coming home’ to spend money on local entertainment. That means more people are going to work in higher-paying jobs and spending money in neighborhood stores. As a bonus, governments are able to fix roads and bridges and support local budgets.”

He noted Chicago, unincorporated Cook County and other communities that have banned video gaming are hurting revenue goals set by legislators and Governor Pat Quinn in 2009, who approved video gaming as a way to fund capital construction. “Yet local economic benefits from revenues on the machines that are operating have exceeded expectations,” Gelatka said.

He added video gaming has not caused an increase in crime. In addition, communities have realized they can control video gaming’s growth. “This makes us hopeful that we can educate communities that turned down video gaming to revisit earlier decisions made before they understood the laws and the positive impact our industry is having on Illinois.” For the few people who need help with problem gambling, Gelatka said the video gaming industry, the Illinois Gaming Board and local treatment centers offer help and information.

“Too often, the stories of the winning hand that video gaming provides all across our state go untold as critics blame us for the demise of casinos or focus on negative behavior associated with gambling. It is time we spoke up as an industry so Illinois citizens see for themselves the impressive results,” Gelatka said.