Video Gaming Impacting Illinois Revenue

Licensed restaurants, bars, truck stops and fraternal and veterans organizations in Illinois currently host 11,105 video gambling machines that generated $8.4 million for the state and $1.7 for cities. Meanwhile in November revenue was down at 9 out of the state's 10 casinos. Are video games cannibalizing the casinos?

With Illinois Governor Pat Quinn’s signature on a pension reform bill, attention has turned to expanded gambling. However, video gambling at licensed bars, restaurants, truck stops and veterans and fraternal organizations has cut into casino revenues. In November, revenue was down at 9 out of 10 of the state’s casinos, but not at Rivers Casino in Des Plaines. Overall, 4.8 percent fewer people visited Illinois casinos in November compared to November 2012. Casino admissions dropped two percent, from October to November.

At the end of October, the 11,105 gambling machines in Illinois generated $8.4 million in revenue for the state and another $1.7 million for cities. Noted Tom Swoik, of the Illinois Casino Gaming Association, “That money is coming from someplace, and I would say video gaming is cannibalizing the casinos. People are saying, ‘Why go to East Peoria to play slots when I can just go down the street?’“

Quinn previously has vetoed two expanded gambling bills, calling new casinos in Chicago, Rockford, Lake County, Danville and Chicago’s south suburbs and slots at horseracing tracks and Chicago airports. Currently operating casinos oppose adding so many gambling options. Casino officials have said the gambling market already is saturated and adding more gambling opportunities would cannibalize existing operations.

Quinn also insisted that any gambling expansion bill contain strong anti-corruption language.