St. Charles, Illinois Extends Video Gambling

After an 18-month trial, St. Charles, Illinois aldermen voted 6-3 to indefinitely extend an ordinance allowing video gambling. The April 30 sunset clause will be removed after the city council ratifies the measure. As of January 1, 55 video gambling machines at 13 establishments generated taxes of $595,354 for the state and $119,070 for the city.

Following an 18-month trial period, aldermen in St. Charles, Illinois recently voted 6-3 to extend indefinitely an ordinance legalizing video gambling in the city. If the city council ratifies the measure later this month, an April 30 sunset clause would be removed. Alderman Steve Gaugel, who originally opposed video gaming, said, “After this program has been in place now for almost) two years, I think it’s been managed well. I think we would be doing more harm than good by removing it at this point.”

The games first appeared in St. Charles in September 2016 and currently 13 license holders operate 55 machines; three more applications are pending, Police Chief James Keegan said. No violations or related crimes have been reported in regard to the games, he added. According to the Illinois Gaming Board, as of January 1, video gambling generated about $2.4 million in net taxable income for establishments with video gambling machines. Those profits are taxed at 30 percent, resulting in $595,354 for the state and $119,070 for the city.

One of the three alderpersons who voted against the extension is Aldermen Rita Payleitner. She said, “I strongly feel no dollar amount brought in by video gambling to the city can justify the detriment brought to even one family in St. Charles.” She added legalizing video gambling isn’t good for the city’s image, despite regulations limiting signage and advertising. Plus, she said there are no laws to prevent “over-gambling.”

Restaurant owner Bob Karas told aldermen video gambling revenue has helped his 10 local establishments remain in business. “We definitely wouldn’t survive without it at this point,” he said.

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