Although video gambling is considered a godsend in certain Illinois communities, it’s taking a bite out of casino admissions and revenue, said Illinois Casino Gaming Association Director Tom Swoik. “I think there is a lot of cannibalization” Swoik said.
He noted in the first eight months of this year, Illinois casino admissions were down 11 percent compared to the same period in 2012 , and declined by 17 percent for the same period in 2011. To date in 2014, gaming revenues have decreased 8 percent from the same period in 2013, and are down 15 percent for the same period in 2012.
The Illinois legislature approved video gambling machines in 2009 and after court battles the games began showing up in September 2012 in bars, restaurants, truck stops and veterans and fraternal establishments. At first, 61 machines statewide generated $27,000 in tax revenue. As of September, 2014, about 18,000 terminals were projected to bring in more than $180 million in revenue, according to the Illinois Gaming Commission.
The games have been a huge help to communities like Lynwood that lack a retail base. Mayor Gene Williams said, “There are very few ways to bring in additional income.” He stated although video gambling will not have a huge economic impact, “any additional money to a small community like Lynwood, it’s a help. It’s better with video gambling than without it.” The Illinois Gaming Machine Operators Association estimated tax revenue from video gambling this year could bring in more than 27 percent of all sales tax collected by the village last year.
Michael Gelatka, president of the Illinois Gaming Machine Operators Association, representing video gambling terminal operators, said, “I think it’s been a blessing for most everybody.” He noted revenue from video gambling makes up a significant portion of funding for the state’s capital program, Illinois Jobs Now.
Gelatka is co-owner of G3Gaming, which services video gambling terminals at 50 establishments in the south and west Chicago suburbs. Previously the family-owned business maintained coin-operated devices such as jukeboxes and pool tables at bars and restaurants, Gelatka said. He added due to increasing operating costs and economic woes, some of those customers had to shut down. But video gambling has helped many others stay afloat.
