Like other Illinois riverboats, the Par-A-Dice Casino in East Peoria, Illinois has been hit by the growth of video gambling machines in area cafes and bars. Since the games were legalized four years ago, nearly 4,000 machines have been installed in the area, offering a convenient way to gamble. At the same time, according to state figures, Par-A-Dice admissions fell 27 percent. Admissions peaked in 2001 and dropped from 1.94 million to 885,000 visitors in 2016.
In addition, the casino laid off 40 employees a year ago. In 2016, the casino reported 685 full- and part-time employees– 74 fewer than in 2013. As a result, since then the casino’s reported wages and salaries decreased 6.4 percent to $15.56 million last year.
Gaming revenues at Par-A-Dice also fell but to a lesser extent. Fewer people gamble there, but they’re spending more: an average of $97 per visit in 2016 compared to $72 per visit in 2001.
A spokesman for Par-A-Dice owners Boyd Gaming of Las Vegas blamed the decline in admissions and average spend on competition from storefront video gaming machines.
The local share of casino tax revenue is split by Eat Peoria and Peoria. That share dropped 22 percent between 2001 and 2012. A double blow came in 2008 when the state banned smoking in buildings with public access and the recession began. Still, video gambling dealt a harder hit, causing tax revenues to tumble another 26 percent between 2012 and 2016.
Establishments with video gambling machines pay tax revenue to local communities. Peoria will receive about $500,000 in video-game revenue and East Peoria will collect about $175,000 from 2016, the cities’ treasurers reported.
And the games keeps growing. For example, in Pekin there are 10 gaming cafés and 22 bars and bar/restaurants that offer video gambling. The city collected $12,838.31 in the last four months of fiscal 2013, the first year the city received video-gambling revenue. For the current fiscal year, May 1 through April 30, the city has collected $271,576.65 through February. Finance Director Angie Evans said if the trend continues Pekin should collect an additional $50,000, said Finance Director Angie Evans.
All gaming license holders also must obtain a liquor license under state law. Pekin Mayor John McCabe, who also heads the liquor commission, said, “One of the concerns is we don’t want to get inundated with these places, especially ones that are being operated by out of state organizations. The concern there is you have local ones that are operated by local people and these out of state organizations could have the tendency to run them out of business. The other concern is some of the other establishments in town saw their businesses being infringed upon. Well, again, that’s free enterprise.”
McCabe added some citizens “are concerned about the concept of gambling. They don’t like it and they feel it can eventually become a detriment to the community.”
