Casino gambling in Illinois generated slightly more than 2 million in June—a decrease of nearly 9 percent from May and a drop of 5 percent compared to June 2015, according to Illinois Gaming Board numbers. Rivers Casino in Des Plaines came in first as usual, generating million in June. However, that’s a decline of 11 percent from May and 3.7 percent from June 2015.
Harrah’s in Joliet took in $14.4 million in June, a drop of l.25 percent from May and 4.1 percent from June 2015 . Next was Elgin with just under $12.4 million, followed by Hollywood Casino of Joliet with just over $10 million. Dollars, a 10 percent drop from May and an 8.4 percent drop from June 2015.
Illinois casino operators blame at least part of the revenue drops on the growing video gambling industry, which was authorized by the legislature in 2009; the first games actually were offered two years later. As of the end of May, 23,406 video gambling terminals were in operation at 5,658 locations statewide, including bars, restaurants, truck stops, gas stations and casino cafés, which are permitted a maximum of five terminals. Tax revenues from the machines are divided among terminal operators, owners of the establishments offering the games and the state, which also gives a portion of taxes collected to local governments.
In 2015 video gambling terminals took in a record $913 million; $274 million of that total went to the state and host communities. In the first five months of 2016, the machines took in $459 million, an increase of 25 percent over the same period last year. Casinos took in $1.4 billion, providing $488 million for state and local governments. Casinos only may have up to 12,00 slots and table-game positions. They offer higher limits on wagering and payouts than video gambling machines.
Tom Swoik, executive director of Illinois Casino Gaming Association, which represents eight of the state’s 10 casinos, said when video gambling first was approved, “The original intent was to help the bars, restaurants and some of the truck stops earn some revenue for themselves and for the state. think what happened was with the advent of the cafés, and also with the liquor stores and gas stations, people realized there were ways it could expand. And it’s just gone crazy.”
But casino companies are starting to mount a defense against the growth of video gambling machines. Michael Gelatka, president of the Illinois Gaming Machine Operators Association, said, “If you have a regional casino and you feel video gaming is eating your lunch, then you have the ability to be a part of it” by investing in the industry or buying terminal operators outright.
For example, last month, Clairvest Group Inc., the private Canadian company that owns a 40 percent stake in Chicago real estate magnate Neil Bluhm’s Rivers Casino, announced it investing $32.5 million in Accel Entertainment. Clairvest stated as a result it would have a minority interest in Accel, which has machines at 20 percent of video gambling locations in Illinois. Rivers Casino spokesman Dennis Culloton said Bluhm, a longtime opponent of video gambling, was not involved in Clairvest’s decision to invest in Accel.
In addition, in May, Delaware North, owner of Jumer’s Casino in Rock Island, purchased Gaming & Entertainment Management. And last summer Penn National Gaming, owners of the Hollywood casinos in Aurora and Joliet, acquired terminal operator Prairie State Gaming. Combined, those companies operate machines in 13 percent of video gambling sites throughout the state.
