Six-Month Video Gambling Moratorium Passes in Illinois

Aldermen in Aurora, Illinois voted 9-3 for a 6-month moratorium on new video gambling licenses, to review how the licenses are regulated. Currently 141 terminals operate in 31 establishments. The games raised $332,045 in revenue in 2016. Alderman Judd Lofchie said, "This is not the time to do this. We don't have a problem."

The city council in Aurora, Illinois recently voted 9-3 to enact a 6-month moratorium on new video gambling licenses. City staff had recommended the moratorium to review how the city regulates video gambling. City Clerk Wendy McCambridge said, “There is no question video gaming does bring in revenue. We just thought it was time for us to look at everything in total.”

Aurora has 141 video gambling terminals in 31 establishments in the city. Ten more licenses are pending in two more establishments that would not be affected by the moratorium, bringing the total to 151 video gambling terminals by the end of the year. McCambridge said the city eventually could have as many as 370 terminals in 74 establishments.

In Aurora, revenue from the Hollywood Casino has been steadily declining for about 10 years, from a peak of $15.4 million in 2006 to $7.03 million in 2016. As of the end of this July, casino revenue to the city was more than $4 million, tracking about the same as last year, but the decline appears to be slowing. Video gambling brought in $332,045 in 2016.

Alderman Judd Lofchie, one of the three who voted against the moratorium, said he was “dead set against” it. “This is not the time to do this. We don’t have a problem,” he said. Lofchie expressed concern that the moratorium might discourage new restaurants from opening in the city; one establishment interested in opening in his ward wants video gambling terminals, he said.

In Aurora, an establishment must have a full restaurant liquor license to qualify to receive a separate video gambling license. McCambridge said the city could consider capping the number of total gaming licenses; capping the number any one establishment could have or increasing per-terminal fees. She also said the city could allow video gambling at non-restaurant establishments that have liquor licenses, including the Paramount Theatre, hotels, golf courses and banquet halls.