“Volume! Volume! Volume!”
Thursday, Jun 28, 2012
* Business people are always looking for a way to make money. No problem there. But sometimes they do it by taking advantage of the way laws are written. So, for instance, the state video gaming law apparently doesn’t limit the number of licenses that people can have. Therefore, the way to make real money is to open up a whole bunch of small, inexpensive to operate storefronts that focus almost solely on the five video terminals allowed by statute per location…
I’ve seen the business plan for one of the proposed locations via a friend who’s not connected to the owners. It’s basically a narrow room with terminals on one wall and a few tables and a bar.
“Prepackaged sandwiches” means it’s not really an “upscale neighborhood pub and deli.” These are basically just mini casinos designed to have very low overhead costs. String enough of them together and you’re looking at some real money here.
* The Illinois Commission on Government Forecasting and Accountability estimates that each machine would generate $70 to $90 a day for the establishments.
So, that could mean, if all nine Sangamon County stores get liquor licenses and are then approved by the Gaming Board, the chain could make up to $4,050 per day, every day gross. And that’s just Sangamon County. The company has applied for liquor licenses all over the place, including the Metro East. If they end up with, say, 30 storefronts, they’re looking at grossing as much as $13,500 every single day.
The state tax rate is 30 percent (with local governments getting a taste of the state’s end) and there are some annual fees for the machines, but that’s still a pretty darned good daily after-tax gross, if you ask me.