Illinois May Expand Gaming

Illinois could add a mega-casino in Chicago and several smaller casinos in the suburbs if a lawmaker has his way. Legislation being considered could empower a Windy City casino with 10,000 gaming stations. But “boutique” video gaming parlors (l.) are exploding.

An Illinois lawmaker has introduced legislation that would create a Chicago casino with as many as 10,000 slots and tables, but which has rival legislation that would authorize a 4,000 slot Windy City casino and several smaller casinos with 1,200 slots in a nearby suburb, such as Rockford, Danville or Lake County.

There is a lot of interest among mayors of those suburbs for one of those casino licenses, if they become available. The towns of Calumet City, Chicago Heights, Country Club Hills, Dolton, East Hazel Crest, Ford Heights, Homewood and Lynwood have all at one time or another shown interest in hosting a casino as means of creating economic growth and raising money without tax increases.

The mayor of Glenwood Kerry Durkin, said last week that he has an unnamed developer who is interested in building a casino in his town if the legislature moves on the proposal that would include expanding gaming in the suburbs. The town has many lots that would qualify, including considerable empty farmland, he said.

Meanwhile, communities in north central Illinois are increasingly opting into the state’s video gaming program by passing versions of a so-called “boutique license.” According to Gene O’Shea, director of the Illinois Gaming Board’s self-exclusion program, in order to qualify for a gaming license, state law only requires that businesses have a liquor license and pass a background check. Obtaining the license depends on how many background checks are needed and making sure the name of the owner matches the name on the liquor license. “It has to do with the complexity of the ownership. For one place and one guy the licensing is a lot quicker than a corporation,” O’Shea said.

In Rockton, four businesses operate 20 machines compared to only one business with five machines last January. The games are earning about $2,500 a month for the city. While there is no limit to the number of gaming liquor licenses in Rockton, Mayor Dale Adams said, “We are sensitive to the fact that we don’t want a whole block with nothing but gaming.” An ordinance recently passed requiring businesses that have a liquor license to pay an additional $200 for a gaming license. “That’s to cover any additional administrative work that is needed,” Adams said. He noted as far as state officials are concerned, “You could give a church a liquor license, and they could have gaming machines.”

Adams acknowledged if proposed casinos are built in Rockford and Beloit, interest in video gaming at local bars could drop off significantly. As a result, some business owners have expressed interest in operating establishments offering gaming in a lounge-type atmosphere with smaller bar areas. “That concept might have merit. Some people that wouldn’t want to go into bar could go to one of these places to put money in a machine once or twice a week,” Adams said.

Other communities are experiencing video gaming revenue increases via boutique licenses. In Roscoe, 10 businesses operate 48 gambling machines that have brought the city $8,579 since January, according to gaming board reports. Last year only three businesses offered 12 machines; the city earned $973 from video gaming revenue in January 2013. And in South Beloit, seven businesses operate 35 machines that have earned $5,746 for the city compared to two businesses and 10 machines that brought in $1,440 in January 2013.

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