Video Gambling Concerns Towns, Casinos

Although video gambling terminals have raised more than $210 million in tax revenue for the state and $42 million for local governments, officials are concerned that the terminals are showing up in unintended locations. City governments are trying to curb the games' growth, while casino officials are alarmed they're losing customers to the games.

According to the Illinois Gaming Board, as of October, 18,669 video gambling terminals were offered in 4,570 businesses, and the numbers keep growing. Since the first terminal went live in 2012, more than billion has been wagered, generating 0.8 million in tax revenue for the state and .2 million for local governments.

The original legislation allowed the games in licensed restaurants, bars, truck stops and fraternal and veterans establishments. Today, they also can be found in a scuba shop and laundromat in Winnebago County, a florist shop in Oak Lawn, an apartment complex in Champaign, an equestrian center in Willowbrook, as well as liquor stores and gas stations. 

State Rep. Lou Lang, one of the sponsors of the video gambling bill, said,  “It was never our intention to turn florists’ shops into places for gambling. And so, it’s something that needs to be looked at, for sure.” Lang said legislators passed the bill to legalize and regulate video gambling, and to allow establishments with a liquor license to offer up to five machines. “The liquor distinction was something we put in there to keep some control over the amount of terminals,” Lang said.

Elected officials are trying to curb the growth of video gambling. Elk Grove Mayor Craig Johnson said Blackhawk Restaurant Group has opened four of its storefront gambling businesses there. Blackhawk has 43 locations in the Chicago suburbs and more are on the way. With names like Betty’s Bistro, Penny’s, Emma’s and Jena’s, the operations also sell food and drinks.

“They gear their businesses toward women between the ages of 35 and 65, and they tell you that,” Johnson said. He noted the Blackhawk bistros are the top generators of revenue among Elk Grove’s 16 businesses with video gambling terminals.

Johnson added Elk Grove requires food service and a minimum floor space to prevent other operations from becoming “mini-casinos.” He said, “It couldn’t be like a 500 square-foot storefront and a guy would hand you a can of beer.”

In Peoria, Councilwoman Beth Akeson said officials recently rejected several measures that would have permanently blocked further expansion of gambling locations. However, the council enacted a temporary moratorium while it studies the situation. “We have what we have, but I would not like to see any more,” she said.

Illinois casinos also are concerned over a report by the Illinois Commission on Government Forecasting and Accountability, indicating in the fiscal year that ended in June, revenue dropped by at least 9 percent in eight of the state’s 10 casinos. The report concluded that new gambling businesses were siphoning off casino customers. Tom Swoik, executive director of the Illinois Casino Gaming Association, said, “If our revenues and admissions are dropping because of video gaming parlors, the taxes we’re paying are going to start decreasing.”