The recently released annual report from the Illinois Commission on Government Forecasting and Accountability suggests there may be a connection between the growth of video gambling and revenue declines at every casino in the state except at Des Plaines.
State Rep. Bob Rita, sponsor of an expanded gambling bill, said, “They’re trying to say there’s a direct correlation, that it’s the same gamblers” who are abandoning casinos for video gambling. He added, “Now you can actually see revenues” from video gambling.
The revenues are impressive. Since October 2012, when the games became legal and were offered in 65 locations, Illinois gamblers have played $2.6 billion and have lost about $721 million as the number of games grew to 18,000 in 4,500 non-casino locations, according to Illinois Gaming Board data. Monthly net wagering has steadily increased, nearly doubling in the last year with a peak of $59 million in August. Video gambling revenue is divided as follows: 5 percent to the municipality, 25 percent to the state, less than 1 percent to system monitoring and the rest is split by the business and machine operator.
Video gambling is prohibited in about 90 communities in Cook County and the so-called “collar counties,” but not in the suburbs. There, Rockdale, population 1,950, has the highest saturation of video gambling per capita, with 26 gaming terminals in eight bars and restaurants. So far this year the games have netted $414,000 after winnings. Runners-up include Oakbrook Terrace and East Dundee. In southwest suburban Joliet, more than 60 establishments offer video gambling, the highest total in the area.
However, more than 100 municipalities have overturned bans or approved new ordinances to allow the games, fueling their growth throughout the state. One example is south suburban Tinley Park, population 57,000, which had banned gambling devices by ordinance since 1961 but reversed course in January. Today 19 businesses offer video gambling, where players wagered $2 million to generate $600,000 after payouts. Gambling opponent Mayor Ed Zabrocki said he changed his mind because Tinley Park’s ban put businesses at a disadvantage compared to neighboring communities. Also, he said, the town requires a business to pay a $1,000 annual license fee and to install a kitchen before it’s allowed to have the games.
Other cities that currently allow video gambling also are changing local codes to have more control over its growth. In Peoria, for example, the city council is considering requiring establishments to prove they earn $1,500 in food, beverage, and merchandise a month, for at least one year, before being allowed to apply for a video gambling machine license.
But some communities are holding firm against video gambling, such as west suburban Lisle, which upheld its ban last month despite a plea from owners and managers of 11 local businesses. A local VFW in neighboring Batavia also was turned down. In north suburban Niles, the chamber of commerce asked village officials to reconsider its ban in light of video gambling’s availability in Morton Grove. Niles Chamber Executive Director Katie Schneider said, “I don’t think it’s a question of should we allow gambling. Gambling is here. I think it’s a question of should we be able to compete, should it be a level playing field.”
Michael Gelatka, president of the Illinois Gaming Machine Operators Association, said, “People are seeing it’s not the huge tidal wave of problems that they’d once thought.” But not everyone would agree, including Oak Lawn Mayor Sandra Bury. She explained first mom-and-pop taverns installed the games, then cafés designed to attract female players began to appear and now fast-food operations want the licenses. Today, Bury said, 147 games are offered in 32 locations where, since January, players have gambled nearly $16 million with more than $4.3 million in net wagering after payouts. Bury said, “We just don’t want to become like Las Vegas, where there’s one on every corner. You go into a family restaurant and there’s gaming in the corner? It’s a little strange. My concern has always been for the social consequences.”
Anita Bedell, executive director of Illinois Church Action on Alcohol and Addiction Problems, said video gambling is particularly problematic because it brings gambling to the heart of communities.
She said local governments should not be dazzled by video gambling revenue which actually represents losses for gamblers. “That doesn’t begin to cover the social costs of gambling, the crime, the addiction, the bankruptcy,” Bedell said.
