In Illinois, an increasing number of grocery stores have been seeking liquor licenses to allow sales of beer and wine along with prepared food in dining areas. As a result, they also become eligible under state law for video gambling licenses, just like restaurants and bars, truck stops and fraternal and veterans organizations. Recently, Piggly Wiggly in Antioch became one of the first full-service grocery stores in Illinois to offer the games.
Piggly Wiggly owner David Karczewski said the machines offer him a way to compete with big grocery store chains and Wisconsin’s tax-free groceries. On January 11, when Karczewski applied for a new liquor license to serve alcohol inside the store, he told the village board he had no plans to install gambling machines. Less than a week later, the board unanimously approved Piggly Wiggly’s new liquor license. Karczewski paid $250 a year in addition to $2,000 for the license to sell alcohol for off-site consumption.
On March 9, Karczewski applied to the Illinois Gaming Board to install video gambling machines. That license was approved in late May and the machines went live in June, he said. “The gambling machines weren’t really part of the plan, but I’d say we’re pleasantly surprised. I haven’t had any negative responses from any shoppers,” he said.
That doesn’t mean he has had any. Antioch Trustee May Dominiak said, “I don’t think I’d use the word ‘duped.’ I would say I was misled.” Antioch Mayor Larry Hanson noted, “The Piggly Wiggly proposal itself was a unique thing that was intended to help a local business stay afloat in difficult times. I would have preferred to add a clause that prevented gaming, but that was not an option. Overall, I think the business benefits the community, despite the gaming.” In early May the Antioch board passed a resolution asking the state to modify the law to give local governments more control over the type of businesses that can get video gambling licenses.
Illinois Gaming Board records indicate two other full-service grocery stores downstate have video gambling licenses. Gaming board officials said the agency lost a lawsuit in which it tried to limit video gambling in “nontraditional” locations like grocery stores. State law allows the machines at “any licensed retail establishment where alcoholic liquor is drawn, poured, mixed or otherwise served for consumption on the premises.” In other words, once a municipality or county that allows video gambling issues a liquor license for on-site consumption, it can’t stop the establishment from installing up to five video gambling machines.
Anita Bedell, executive director of the Illinois Church Action on Alcohol & Addiction Problems, said “Gambling in grocery stores is going way beyond what the legislature intended and takes it mainstream. You can choose to go to a bar or video gambling parlor, but this is a place where families and children shop. These machines are triggers for gambling addicts, so where are you going to go to get away from it?”
Video gambling revenue is split among business owners, state and local governments and the machine owners, or terminal operators. Business owners and terminal operators each get 35 percent of all revenue, the state gets 25 percent and the local government gets 5 percent.
From June 2016 through May 2017, the most recently reported 12 months, the 61 machines inside 13 Antioch businesses netted $3.5 million. Antioch received less than $175,000 of that amount. Gaming board records indicate dozens of other machines in unincorporated Lake County with Antioch mailing addresses generated millions more, but that revenue goes to the county.
Meanwhile, in Kane County, the board’s administration committee recently voted to keep video gambling legal in unincorporated areas. The board had decided to reconsider video gambling after neighboring DuPage County renewed its ban. The committee’s recommendation will be presented to the full county board in August.
Kane County banned video gambling in 2009 but reversed that after five months. Today the 11 establishments in unincorporated areas that offer video gambling bring in $135,000 in annual tax revenue for the county. In both unincorporated and incorporated areas, nearly 1,000 video gambling machines are in operation.
The Grand Victoria riverboat casino has blamed video poker in the county for an all-time low in profits last year. Kane County’s share of income from all gambling sources now is one-half of 2011 totals. However, local business owners said video gambling helped restore lost profits due to the state’s smoking ban.
Committee member Drew Frasz strongly opposed legalizing video gambling in Kane County in 2009 and 2010. But now he supports keeping video gambling.
On Tuesday, he became one of the leading voices on the committee to keep video gambling in place. “I don’t think anybody opposed video gambling stronger than I did. But as long as the bulk of the county is allowing gambling, I’m reluctant to penalize a select few,” he said.
And in Joliet, the city council unanimously rejected Kathy Wilda’s application for a liquor license for a gambling café called Lucky Daisy 7777 Inc. that also would offer painting parties and other activities appealing to women.
“We really want to focus on a place for women to come, whether you come with one friend for a cup of coffee or five friends for a nice evening,” said Wilda.
She added video gambling would be available “so if husbands come they have something to do. Or, if just women come, they have a nice, safe place to hang out.”
Councilwoman Jan Quillman noted wine bars with painting parties have been successful elsewhere, and suggested Wilda reapply for the license without the gambling. Mayor Bob O’Dekirk, who also is the city’s liquor commissioner, added, “If you want to reapply without the gaming, we’d definitely consider it.”
Wilda said later, “We’re going to rethink and revamp and put some numbers together, and maybe give it another shot.”
Cafes with video gambling, typically located in strip malls and marketed toward female customers, were an issue when the first ones came into Joliet several years ago, and it appeared that many more could be on the way. In Joliet, three video gambling cafes targeted to women have received licenses.
