A recent report by Union Gaming Analytics for the Illinois Gaming Machine Operators Association indicated video gambling terminals have generated 5 million in state and local tax revenue since they went online in fall 2012. In addition, the study showed Illinois video gambling operators have created more than 32,000 jobs statewide. Michael Gelatka, IGMOA president, said, “It is clear from these results that video gaming is an economic shot in the arm for our state and in every county. We hope the governor, lawmakers and local leaders around the state will look closely at how great a benefit video gaming is providing in a short time and where we can work together to build on those benefits moving forward.”
The report predicted video gambling tax revenue will reach $300 million a year by 2020 without any major expansion. However, one major obstacle to even greater growth is the refusal of the city of Chicago and other communities to allow video gambling. If Chicago allowed the video terminals, state and local tax revenue would leap to more than $700 million annually, the report said. Even if Chicago maintains its ban, if hundreds of Illinois communities changed their laws, state and local tax revenue would increase to $480 million annually.
In addition, Union Gaming’s report indicated video gaming has circulated $830 million in net proceeds through local businesses in Illinois communities. It also calculated the increase in sales tax revenue from eating and drinking at video gaming establishments in 15 cities around Illinois. In 2013, the average sales tax increase for each place was $417 per machine, or a total increase in sales tax revenue of $5.6 million collectively. And through the first nine months of 2014, the latest date where the sales tax data could be tracked, eating and drinking sales tax was up a collective $6.9 million from video gaming machines at these establishments.
Dan Clausner, executive director of the Illinois Licensed Beverage Association, said, “So many times, I would hear from our members who were about to close their doors because they just couldn’t make the economics work anymore. Now with video gaming, people are coming back in the doors and spending money, which means these bar owners can hire people and improve their facilities.”
