Officials in the Chicago suburb Orland Park, Illinois recently received the results of a study indicating 150 video gambling terminals would generate for the city a total of $462,470 in annual tax revenue plus a $500 per-terminal annual fee. The city commissioned the study from accounting and consulting firm Crowe Horwath this summer. Another poll, conducted online, asked the village’s 67 Class A liquor license holders if they were interested in offering electronic gambling machines with the restriction of having been operating 18 consecutive months. In that poll, 23 said they were, 37 were not and seven were undecided.
Mayor Keith Pekau said the results were “not completely shocking. We’re being thoughtful about how we’re doing this.” The village has scheduled three town hall forums on the issue, November 27, December 11 and January 8.
Under state law, up to five machines are allowed per licensed. Orland Park would charge an annual fee of $1,000 per terminal, plus initial licensing and application fees of $2,500 with an annual license renewal fee of $1,000. Also, no business located within 100 feet of a school or house of worship could receive a license. The business would have to segregate the terminals from the rest of its operation and install video recording and monitoring equipment where they are located. In addition, the ordinance would require lights and sounds generated by the machines “to be limited so as not to be seen or heard outside of the video gaming area.”
The proposed ordinance also would require a licensed establishment to “post a conspicuous official decal or sign” provided by Orland Park “at each public entrance to advise patrons the establishment is a licensed video gaming establishment.
In West Frankfort, near the southern tip of the state, for the second consecutive month the city council voted unanimously to expand its Class A liquor licenses to allow more businesses to offer electronic gambling. The number of available licenses was increased from 10 to 16. A license was denied to a business that only had been renting a space for four months, since previously the city council decided to base awarding liquor licenses on how much investment the business has made or will make in the town.
West Frankfort Mayor Tom Jordan said businesses that already offered gaming were not happy with the council’s decision. But he said that would have given some businesses an unfair competitive advantage over similar businesses without the gaming machines. “We just want to make sure that everybody has a chance,” Jordan said.
Councilwoman Tara Chambers said, “Personally I don’t love video gaming, period. That’s not something I’m a huge fan of personally but the reality of where we are in the world is that this is a trending business model. This is the next thing that convenience stores and other establishments are going to, to increase their revenue.”
Some business owners opposed the move, but not because it could lead to more competition. Bar owner Greg Peebles said, “Gaming is not going to save the city. They need something besides more establishments that have gaming and liquor to build West Frankfort.” Another tavern owner, Bobby Whittington, said the number of gaming customers in the town is limited, “The pie can only be cut so many ways,” he said.
