Illinois Gaming Machine Operators Association’s View: Video gaming in Illinois success story

See Boone County Government’s last reported 12 months income from video gaming, after the opinion piece.

Posted Sep. 5, 2014 @ 1:52 pm

Video gaming is an unquestioned success in Illinois. Nearly two years after the first video gaming terminals became available to the public in September 2012, the numbers and the stories from so many people and places around Illinois prove that state lawmakers were correct in legalizing video gaming five years ago.

Just ask the Illinois Gaming Board. In its 2013 Annual Report, the board wrote, “Video gaming in Illinois has proved to be both a regulatory and technical success as well as an important adjunct to State revenues.”

As president of the Illinois Gaming Machine Operators Association (igmoa.org), which includes many video gaming terminal operators whose machines are producing these great benefits around our state, I hear of video gaming success stories every day. Our partnering bars, restaurants and veterans or fraternal clubs are using the new revenue to start to recover from years of financial hardship. There is a renewed hope on Main Street Illinois that people are “coming home” to spend money on local entertainment. That means more people are going to work in higher-paying jobs and spending money in neighborhood stores. As a bonus, governments are able to fix roads and bridges and support local budgets.

Too often, the stories of the winning hand that video gaming provides all across our state go untold as our critics blame us for the demise of casinos or focus on negative behavior associated with gambling. It is time we spoke up as an industry so Illinois citizens see for themselves the impressive results:

Video gaming started in September 2012 with 61 machines producing about $27,000 in tax revenue. The growth since then has been strong. By the end of 2013, more than 13,300 machines statewide had produced nearly $90.2 million in state and local tax revenue.

This year has been even more successful. Through July 2014, the latest numbers reported by the Illinois Gaming Board, there are now nearly 18,000 machines around Illinois that have generated about $104 million, surpassing last year’s total in just over a half of a year — a pace that would exceed $180 million in state and local tax revenue by the end of this year.

Decisions by Chicago, unincorporated Cook County and other communities to opt out of video gaming have definitely hurt the industry’s chances of meeting revenue expectations set when lawmakers and Gov. Pat Quinn approved VGTs as a key funding source for the 2009 capital construction bill. Yet, local economic benefits from revenues on the machines that are operating in participating communities have exceeded expectations.

There has been no increase in crime tied to video gaming, as some critics had predicted. Towns realize they have ultimate control over which businesses qualify for video gaming and its future growth. This makes us hopeful we will continue to see growth and that we will be able to educate communities who have turned down video gaming to revisit earlier decisions that were made before they understood the video gaming laws and the positive impact our industry is having on Illinois.

• Page 2 of 2 - For the small percentage of people who need help, the video gaming industry is working together with the Illinois Gaming Board and local treatment communities for unprecedented aid and information through the Illinois Alliance on Problem Gambling: illinoisalliance.org

  Video gaming is making a difference locally around Illinois, supporting businesses by keeping cash local and helping rebuild communities economically. In turn, the tax revenues realized from video gaming are helping Illinois make significant infrastructure improvements. We look forward to doing a better job of telling you these success stories and working to building a stronger Illinois, starting on Main Street.

  Michael Gelatka is president of the Illinois Gaming Machine Operators Association.

• 
  Read more: http://www.rrstar.com/article/20140905/Opinion/140909621#ixzz3CahfwLfL

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Total Boone County government income for last 12 months:  $61,132.89.

City of Belvidere’s 12 month income is $53,065.04.

Poplar Grove’s 12 month income is $10,441.10.

Capron’s 12 month income is $5,718.79.

Above video gaming income available at:  http://www.igb.illinois.gov/VideoReports.aspx

Rock River Valley leaders unaware of video gaming machine installation - News - Rockford Register Star - Rockford, IL

By Jennifer Wheeler
Rockford Register Star

Belvidere leaders said they were kept in the dark last fall until the Illinois Gaming Board's monthly report was released, listing numerous local businesses with live terminals. That's when leaders determined the stores operating these machines had not obtained the necessary local permits or paid the required licensing fees.

"It didn't come on our radar until we got the revenue," Belvidere Mayor Mike Chamberlain said.

He said he wasn't aware a single video gaming machine had been turned on until his office received it's local share of September revenue from the video gaming machines - totaling $61.35.

READ THE ENTIRE ARTICLE BY CLICKING ON THE FOLLOWING:  Rock River Valley leaders unaware of video gaming machine installation - News - Rockford Register Star - Rockford, IL

Boone County’s Video Gaming Income for September 2013

The county will receive $4,623.23 compared to $5,782.64 for August 2013.

The following is taken from:  http://www.igb.illinois.gov/revreportsVG/VGStat201309.pdf

City of Belvidere will receive $61.35

Capron $248.43

WICS NewsChannel 20 :: News - Top Stories - Officials Rethink Video Gaming's Estimated Revenue

 

The Illinois Commission on Government Forecasting and Government Accountability estimated the state would make 1-billion dollars off of video slots in its first year. They recently revised that to $200 million at most. 
Vicky Dover owns the Jacksonville Bowl Inn. She says the machines have had a positive impact to her establishment. "The community really enjoys having this at their fingertips if they want to come in and play. For us as a business, I think it has done wonderful," Dover said.
She was able to remodel the bowling alley's bathrooms and purchase a new roof just off of income from the gaming. In Springfield, the owner of Fulgenzi's Pizza and Pasta says gambling has taken a slow start.
In order to get a license, businesses dished out $100. They receive 30 to 40 percent of profits from having the machine

WICS NewsChannel 20 :: News - Top Stories - Officials Rethink Video Gaming's Estimated Revenue

Boone County’s Video Gaming Income for August

The county will receive $5,782.64

The following is taken from:  http://www.igb.illinois.gov/revreportsVG/VGStat201308.pdf

Belvidere cuts liquor license fee in half to $10,000 - Rockford, IL - Rockford Register Star

 

By Jennifer Wheeler

The City Council voted 7-3 Tuesday to decrease the one-time liquor license fee from $20,000 to $10,000. Aldermen Clint Morris, Karen Schrader and Clayton Stevens voted “no.”

The amendment does not limit the amount of available liquor licenses. ….

In other news, the council agreed to move Catherine Crawford from part-time to full-time status as a transcriptionist, receptionist and support staff employee for Community Development, which is made up of the building and planning departments. Boone County will reimburse the city for 9.5 hours of the position’s salary.

Catherine Crawford is not related to Ald. George Crawford

Read more: http://www.rrstar.com/news/x1367237026/Belvidere-cuts-liquor-license-fee-in-half-to-10-000#ixzz2dveg6CNY

Belvidere cuts liquor license fee in half to $10,000 - Rockford, IL - Rockford Register Star

Proponents of the change said the lesser fee will encourage prospective businessmen to set up shop in the city instead of fleeing to neighboring communities where the charge isn’t as costly. Rockford’s fee is $10,000, while South Beloit, Machesney Park and Roscoe’s fees are no more than $5,000 each.

In other news, the council agreed to move Catherine Crawford from part-time to full-time status as a transcriptionist, receptionist and support staff employee for Community Development, which is made up of the building and planning departments. Boone County will reimburse the city for 9.5 hours of the position’s salary.

Read more: http://www.rrstar.com/news/x1367237026/Belvidere-cuts-liquor-license-fee-in-half-to-10-000#ixzz2dvdCyIKZ

Poplar Grove votes to allow video gaming machines in town | Belvidere Daily Republican

Michelle Burke, manager of Mortimer’s Roadhouse and Grill, was at the meeting and said she was “thrilled” by the vote.

“I’m happy our customers will no longer be going somewhere else to play,” she said.

Mortimer’s has received approval of its application for a state license and now can have up to five machines on its premises.

Burke said there already are machines at Boone County establishments in Belvidere, Capron and Garden Prairie.

John Patch of Allied Gaming said villages Poplar Grove’s size that have machines are averaging $1,300 to $1,700 a month in revenue. They get 5 percent of the revenue from each game.

Poplar Grove votes to allow video gaming machines in town | Belvidere Daily Republican

Has video gambling started to peak in Rockford? - Rockford, IL - Rockford Register Star

By Greg Stanley

climbing slightly from $12.75 million in April to $12.76 million in May. It was the lowest month-to-month increase since the machines were legalized in September.

But while the demand of gamblers may be waning, the demand of business owners for the machines continues to grow. Rockford bar owners installed eight new gambling m

Click on the following for more details:  Has video gambling started to peak in Rockford? - Rockford, IL - Rockford Register Star

S.B. 1738 hides video gambling information from the public | The Rock River Times

S.B. 1738 hides video gambling information from the public

For many years, organized crime profited from illegal video gambling machine operations in Illinois. The chairman of the Gaming Board said it was “almost impossible” to keep the mob out of video gambling. That is why transparency is needed now that the video gambling machines are legal.

Currently, monthly video gambling reports are issued and posted on the Illinois Gaming Board’s website. The reports list the names of each establishment, amount of money gambled, amount won, net wagering activity, state and municipality’s share of taxes.

S.B. 1738 prohibits the board from disseminating information relating to video gambling that is specific to individual licensed locations, and only allows information that is aggregated based on the municipality or county.

It is important for the public to see how much money is being gambled and lost at each establishment. For example, gamblers have lost more than $400,000 in five months on five video gambling machines in the Road Ranger truck stop near Camp Butler in Springfield, Ill.

Why would video gambling interests want to hide this information from the public? Without this transparency, we are concerned that money laundering and organized crime will gain a foothold in video gambling. Riverboat casinos must reveal monthly financial information, and so should video gambling establishments.

Establishments are getting 35 percent of the revenue from video gambling (municipalities get 5 percent), and these funds could pay for security measures. Video gambling establishments need to take responsibility to safeguard the funds in their establishments, such as making daily or twice-a-day deposits, contracting with an armored car for delivery to banks, installing surveillance equipment, or hiring security staff.

Lawmakers should not change the law to prevent the public from knowing how much money is LOST and how much profit video gambling interests are making at each location. We call upon the governor, attorney general and legislators to safeguard the public and oppose S.B. 1738 to suppress video gambling information.

Anita Bedell, Executive Director
Illinois Church Action on Alcohol & Addiction Problems
Springfield, Ill.

From the April 24-30, 2013, issue

The above is taken from:  S.B. 1738 hides video gambling information from the public | The Rock River Times

Boone County’s January/February Income from video poker

 

Below are the monthly totals for Boone County’s two operating state controlled video poker. January $3,274 and February $3,606.

 

Click on the photocopy to enlarge:

 

These items are available monthly from:  http://www.igb.illinois.gov/revreportsVG/Default.aspx

Poplar Grove votes 4-2 to ban video gaming machines | Belvidere Daily Republican

Written by Bob Balgemann

Bravo’s, Mortimer’s Roadhouse and Bar and Timber Pointe Golf Club all applied for state licenses so they could have video gaming machines at their establishments.

recent survey by the Chicago Tribune that showed 48 percent of the municipalities in the suburbs had voted to allow the machines, with 45 percent banning them. The remaining 7 percent was unknown.

Click on the following for more details:  Poplar Grove votes 4-2 to ban video gaming machines | Belvidere Daily Republican

More towns willing to play the video gambling game - Elgin Courier News

By Linda McDaniel-Hale Point Taken February 8, 2013 9:42PM

….about 22 businesses in West Dundee are eligible for the devices. Each business will be able to have up to five terminals in their establishment and hope to make $2,250 a year per machine.

Municipalities already allowing this type of gambling include Carpentersville and East Dundee, both being close neighbors to West Dundee. The East Dundee Village Board went ahead and gave the green light to video gambling even after its citizens voted against it in 2010.

The Elgin City Council is expected to vote Feb. 27 on the issue. Other area villages including Bartlett, Gilberts, Hampshire, Hoffman Estates, Huntley, Lake in the Hills, Pingree Grove, South Elgin and sections of unincorporated Kane County already have the machines up and running.

The village of Algonquin is taking a let’s-see-what-happens approach to the issue for at least six months.

Click on the following for more details:  More towns willing to play the video gambling game - Elgin Courier News

Daily Chronicle | Gambling in DeKalb could be a vote away

By DAVID THOMAS

Bar patrons could be using video gambling machines as soon as Sept. 6 if the DeKalb City Council passes an ordinance approving it Monday.

The council already has approved the measure once and will vote on it in second reading. If approved, the new ordinance would take effect 10 days later.

The establishments, KJ’s Tap, 518 E. Lincoln Highway; American Legion Post 66, 1204 S. Fourth St.; Mardi Gras Lanes, 1730 Sycamore Road; and Sullivan’s Tavern, 722 E. Lincoln Highway, will have to create a separate area and secure leases with the machine suppliers as well.

Click on the following for more details:  Daily Chronicle | Gambling in DeKalb could be a vote away

Internet gambling again in play - washingtonpost.com

Poker lobbyists are ramping up an aggressive push backed by millions of dollars to legalize Internet gambling in the United States this year, hoping to overcome passionate objections from social conservatives, sports leagues and other longtime opponents.

The federal government, which rarely prosecutes online gambling, would net billions of dollars in tax and licensing revenue if it were legalized, proponents say.

With 1.2 million members, the alliance is funded largely by the Interactive Gaming Council, a Canada-based trade group for offshore gambling firms. Together, the groups have spent more than $4 million on Washington lobbying over the past year, and the alliance says its members have recently sent more than 300,000 mailings and e-mails to members of Congress.

Click on the following for more details:  Internet gambling again in play - washingtonpost.com

Cherry Valley Committee discusses video gaming in village

The Cherry Valley Village Board of Trustees’ discussion was heavily biased toward allowing these devices in the village and how they might be regulated

“…We only need to act if we want to limit their use within the village boundaries."

Click on the following for more details:  The Belvidere Daily Republican. - Committee discusses video gaming in village

Local legislators get earful from Kane leaders on video gambling

heard licenses would start to be issued in January. If there had been more information on how licenses would be administered and regulated, she would have been inclined to vote against the ban.

Holmes also told the group, "Find me a community that doesn't already have video gambling going on," making the case that government should at least regulate it and make some money from it.

Click on the following for more details:  Daily Herald | Local legislators get earful from Kane leaders on video gambling

Video poker? Not here.—Chicago Tribune Editorial

If your county or community isn't on the first list, get cracking. Call your local council members, your county board solons, anybody and everybody who can get your jurisdiction to opt out, too. The list of opt-out local governments now stands at 50, according to the Illinois Gaming Board.

recognize video gambling for just what it is: a fine way to pack low-rent bars and then separate moderate-income people from what limited resources their families still have.

These are the 50 governments the Gaming Board says have banned video gambling:
Cook County, DuPage County, Kane County, Lake County, Addison, Batavia, Beach Park, Burbank, Burr Ridge, Bloomingdale, Buffalo Grove, Carbondale, Carol Stream, Country Club Hills, Darien, East Dundee, Elburn, Elmhurst, Evanston, Glen Ellyn, Glenview, Hanover Park, Hawthorn Woods, Highland Park, Itasca, Kildeer, La Grange, Lake Bluff, Lake Forest, Libertyville, Lincolnwood, Lisle, Mettawa, Mount Prospect, Naperville, Northbrook, Oak Park, Oakbrook Terrace, Orland Park, Palos Heights, Rochester, Rosemont, Schiller Park, South Holland, Villa Park, Wayne, West Chicago, Wheaton, Wilmette, Winfield

The Gaming Board says these 14 governments are considering bans:
Kendall County, McHenry County, Peoria County, Will County, Arlington Heights, Campton Hills, Deerfield, Elgin, Gurnee, Lindenhurst, Oswego, Park Ridge, West Dundee, Winnetka.

Click on the following to read the entire editorial:  Video poker? Not here. -- chicagotribune.com

Freeport’s Journal–Standard’s VIEW: Transparency on video gaming

Will Belvidere or Boone County ever weigh in on this question?

Freeport and Stephenson County have not taken formal action regarding the state’s proposal to install video gaming machines in local restaurants, taverns, and truck stops.We strongly support a thorough and public opportunity to gather input on whether our communities support the new law.It assures that arguments on both sides of the issue will be aired, and our elected public officials will have plenty to consider after hearing public opinion.

What is most important to Illinois residents is the fair and accurate representation of public opinion, and a process that gathers that input through public hearings and an open, public vote by our elected officials.

Click on the following for more details:  OUR VIEW: Transparency on video gaming - Freeport, IL - The Journal-Standard

Kane County Board bans video gambling

The Kane County Board today narrowly voted to prohibit video gambling in the county's unincorporated areas.

The 12-11 vote followed a failed motion to postpone action until the state finalizes regulations for video gambling, and comments from two local pastors who urged the board to vote for the ban

Click on the following for more details:  Kane County Board bans video gambling - Chicago Breaking News