Illinois Gaming Board Chairman Aaron Jaffe recently had words for Tom Swoik, executive director of the Illinois Casino Gaming Association, when Swoik asked state regulators to help casinos compete against video gambling machines in neighborhood bars, truck stops, restaurants and fraternal and veterans halls. Illinois casino officials admit they significantly miscalculated the video gambling’s impact.
Jaffe told Swoik, “I have to say that your organization did not take the lead in stopping anything in video gaming, as a matter of fact your position was ‘Well, it won’t hurt us.’ That was contrary to the belief of a lot of people. Now you come to us and say, ‘We’re hurting.’ Well, we knew that in advance. And you knew that in advance, but you refused to acknowledge that.”
Swoik responded, “There is no doubt the casino industry simply underestimated the impact these machines would have on our industry.”
Legalized in 2009, video gambling machines went online in fall 2012. In 2013, more than $300 million was collected at 13,374 video gaming terminals across the state. That same year, revenue at Illinois’ 10 casinos fell 5.3 percent, from $1.64 billion in 2012 to $1.55 billion. “The Illinois gaming world has changed dramatically over the past year and a half. Every month, we’re seeing about 850 new slot machines come into existence. That’s nearly a new casino every month,” Swoik said.
He noted that businesses that were not supposed to have gambling machines have installed them, even though the legislation specifically limited the games. Swoik said he heard that a florist in Oak Lawn and a scuba shop near Rockford had secured licenses to pour liquor, allowing them to apply for up to five gambling machines.
Swoik added the establishments with video poker machines have no way to screen for players who have put themselves on a self-exclusion list for problem gamblers. Also, he stated, video gambling venues are allowed to send out mass mailings offering discounts or free gambling that could end up in a problem gambler’s mailbox, but casinos must make sure individuals on the self-exclusion list do not receive mailings.
Swoik asked the regulators to address these issues by drafting new rules, since a measure to control video gambling died in the last days of the spring legislative session. He also stated the market is saturated and urged regulators not to support a bill that would add a casino in Chicago and four other locations plus permit slots at racetracks.
