A recently released report on gambling revenue from the Illinois legislature’s Commission on Government Forecasting and Accountability showed video gambling revenue exceeded casino revenue for the first time since the gaming terminals were installed in 2012. The state earned 6 million from video gambling machines during the 2017 fiscal year ending June 30. Illinois’ 10 casinos generated 0 million, a decrease of million since 2016.
Illinois Casino Gaming Association Executive Director Tom Swoik said, “There’s no doubt video gambling has had a significant impact on riverboat casinos. The market is oversaturated and revenues are just shifting from one spot to another.”
Casino admissions also dropped nearly 6 percent this year, a loss of $1.5 million for the state since casinos pay a tax of $2 per person.
Video gambling revenue rose by $44 million in 2017, a 17.5 percent increase over 2016, although the number of video gambling terminals statewide increased just 12.5 percent.
State law limits how many casinos may operate in Illinois. But any business with a license to sell alcohol for on-site consumption, in a town or county that allows video gambling, can install up to five machines. At the end of the 2017 fiscal year, 26,783 terminals were operating in 6,124 establishments statewide. Three months later, Illinois Gaming Board numbers showed 27,681 terminals in 6,249 businesses. Originally the games were located only in bars, restaurants, truck stops and fraternal and veterans organizations. Now they can be found in some family restaurants, grocery stores, florists and other unanticipated locations.
Video gambling machine revenue is divided among business owners and terminal owners (35 percent each), the state (25 percent) and local governments (5 percent).
When video gambling and casino revenue is combined with horseracing and the Illinois Lottery, state gambling revenue rose 7.9 percent to $1.31 billion in 2017, the report said. Horseracing revenue remained at $6 million from the state’s three remaining tracks. The lottery brought in more than half of all the money generated through wagering. This year, the state collected $738 million from lottery related sales, an 8.5 percent increase from 2016, according to the report.
Anita Bedell, executive director of the Illinois Church Action on Alcohol & Addiction Problems, said video gambling machines are “especially dangerous for those who are having problems with gambling. It’s very difficult for them to resist the temptation because the machines are so prevalent. People who might have only gambled when they went to Las Vegas, all they have to do now is walk down the street.”
