The city council in Waukegan, Illinois recently voted 5-3 to approve new rules designed to curb the growth of video gambling cafés. The council had placed a moratorium on issuing new video gambling licenses while it wrote the new regulations. The moratorium was set to expire March 1. Alderwoman Lisa May said she had been hearing from the public that “there’s just too much of it.” May heads the judiciary committee which initially reviewed the proposals.
Under the new rules, new businesses seeking a video gambling license must be located a minimum of 1,500 feet, or about three blocks, apart. Businesses holding existing licenses will be grandfathered in. Also, two or three establishments with video gambling licenses may not operate in a single strip mall; however, the council still could grant exceptions in Waukegan’s downtown business district. “It leaves us a lot of discretion,” May said.
The new ordinance, like the state’s regulations, gives the city the local authority to enforce the new rules and to revoke a license if the holder fails to pay taxes or any bills it owes to the city, or doesn’t do all it can to stop crime at the location. City Attorney Douglas Durando said, “There’s really not a lot of new regulation in here for local business owners.”
Some council members proposed raising the per-machine fee businesses pay from $1,000 to $1,500, to help cover added administrative and enforcement expenses. But May and Alderman Greg Moisio argued against that. Moisio said he would support a gradual fee increase as well as May’s suggested rebate program. May said video gambling has helped some businesses remain open and she did not want a fee increase to hurt them.
May said she was especially concerned about video gambling cafes, particularly franchises that are not locally owned. She said they employ few people, offer limited menus and are “strictly a place for people to gamble.” But Bridget Weber, manager at the locally owned Lucky Jack’s Gaming Café said her establishment and others provide players a “calm, cool environment” for gambling. “It’s not the casino. It’s more intimate in a gaming café. It’s less of a crowd. It’s more quiet. We can cater more one on one with people,” she said, adding video gambling cafés carefully monitor players and ensure a safe environment.
At Lucky Jack’s, players bet about $900,000 in December, according to city records, That generated $80,000 in taxable income, with $4,000 for the city and $20,000 for the state. Lucky Jack’s also operates in Zion, Park City and North Chicago.
