According to figures from the Illinois Gaming Machine Operators Association and the Illinois Gaming Board, video gaming has generated about 5 million in state and local tax revenues since the first machines were installed in the state in September 2012. At that time, about 60 video games could be found in 13 establishments throughout the state. Today more than 24,000 machines are available at more than 5,600 restaurants, bars, fraternal clubs and other businesses with liquor licenses.
IGMOA said video gaming generates more than $22 million a month in taxes that will be used for capital infrastructure projects. IGMOA President Michael Gelatka said, “Our goal from the beginning with video gaming has been to make an economic difference for our partners who draw players to their establishments, for their employees and patrons, and for our state and local governments who need tax revenue to support their services and programs. These numbers confirm video gaming is making that difference, and we look forward to working with policymakers in Springfield and in our communities to build on this good progress.”
Gelatka noted, “Video gaming isn’t the right fit for every Illinois community, but we’re seeing many communities reap the benefits of adding this form of entertainment and rethink their initial concerns. We think there are a number of smart ways for legislators and these local communities to work with us to provide more jobs and economic opportunity. We look forward to making our case with them, using these strong numbers to show we can produce the results we all want.”
Currently about 150 communities do not allow video gaming. Gelatka if the games were legalized, video gaming tax revenue could grow to $500 million annually. And, he noted, if the city of Chicago would allow video games, video gaming tax revenue could reach $700 million a year.
Since video gambling was legalized in Illinois in late 2012 through August 2016, the state capital of Springfield has received $4.019 million from gambling taxes, according to the Illinois Gaming Board, and another $700,000 from licensing and fees, according to the city budget office.
However, the number of new video gaming terminals in Springfield was significantly less this year than in previous years. Video terminals grew from 221 in August 2013 to 453 in August 2014. But that number rose from 542 in August 2015 to 569 in August 2016, the gaming board reported. Springfield still has more video terminals than Rockford.
Springfield Budget Director Bill McCarty said, “The revenue is still trending upward, but not nearly at the rate it had at the start.” He added Springfield has averaged $120,000 a month from video terminals. “In the last several months, it’s been up and down,” McCarty said.
Other communities are seeking ways to limit the number of video terminal locations. For example, the Decatur city council addressed held a study session recently to discuss the issue. State gaming board figures showed at the end of April, 74 Decatur establishments offered a total of 342 gaming machines; that number increases every month.
The Carbondale city council also recently voted to limit the number of terminals to 100. Currently the city has 74 terminals in 17 locations; four other locations are awaiting licenses. City Manager Gary Williams said assuming those four are approved for the maximum of five machines each, the city will have 94 gaming terminals.
Video gaming has generated $146,735 in revenue during the past year, according to gaming board figures. Since the games were legalized in 2012, they have brought in $299,346 in revenue for Carbondale. But some city officials have said the games and their signage may create a negative image for Carbondale. Councilwoman Jessica Bradshaw stated the games in bars and restaurants annoy other customers.
Fourteen south and southwest Chicago suburbs that account for the largest concentration of gambling machines spent more than $150 million through August this year. In that same time period, gamblers lost more than $39 million. New Lenox, Crestwood and Tinley Park are among the suburbs that have passed, or plan to pass, rules to curb the growth of gambling boutiques, cafes or gambling parlors where slots are the primary money maker and food and beverages are secondary. In New Lenox, for example, an ordinance was passed in February requiring a business that offers gambling to earn more than 60 percent of its annual gross revenue from non-video gambling sources. Mayor Tim Baldermann said, “It makes the model closer to what we want it to be. We want to help existing businesses be successful.”
In past year, video terminals in Marion have brought in $203,024 in revenue and $418,877 since September 2012. The Pilot Travel Center, open 24 hours with video terminals, accounts for 35 percent of the city’s gaming revenue.
Mount Vernon has received the most money from video gaming–$259,024 in the past year, and $686,066 since 2012. Mayor Mary Jane Chesley cited four truck stops off the interstate, open 24 hours with video terminals, as the main revenue generators.
