Capitol Fax.com - Your Illinois News Radar » The little guys are winning
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
The little guys are winning

Thursday, Jan 29, 2015

* State and local video gaming receipts more than doubled last year

According to the Illinois Gaming Board, state revenue from the machines topped $164.8 million in 2014, up from $75.1 million in 2013. Municipalities received $32.9 million, compared to $15 million the year before.

The money flowed in as gamblers poured more than $2.4 billion into the machines over the 12-month period, winning $1.7 billion of that back. Five percent of the revenue goes to cities, towns and counties, while 25 percent goes to the state.

Since the first 61 machines went online in September 2012 at a handful of bars and restaurants, the number of machines and locations has mushroomed to 19,182 machines in 4,675 locations.

While the revenue is helping pay for state construction projects, the spread of the machines is being blamed for a corresponding decrease in revenue for the state’s 10 casinos.

Those casinos had a monopoly and huge profits for a very long time, while local tavern owners faced arrest for offering similar gambling options to their patrons. It wasn’t fair.

* More

The Illinois Gaming Board says revenue from casinos fell nearly $87 million in 2014 from a year earlier. Tom Swoik, executive director of the Illinois Casino Gaming Association, blamed the decline on the spread of video gambling machines.

“I constantly hear from people who say they can just go down to the corner bar and play the slots, rather than driving to a casino,” Swoik said.

Casino admission fell 1.4 million from 2013 to 2014. Lawmakers have long talked about adding more casinos in the state. […]

Video gambling machines are banned in 175 municipalities, down from 200 a year earlier.

* Related…

* Springfield gaming terminals up 46 percent in 2014; revenue hits $1M

- Posted by Rich Miller        

38 Comments
  1. - White Denim - Thursday, Jan 29, 15 @ 10:39 am:

    A win, win, win for the businesses, the state, and municipalities.


  2. - Pot calling kettle - Thursday, Jan 29, 15 @ 10:40 am:

    A great way to tax the poor and poorly educated! The best part is that folks pay this tax willingly.


  3. - Pot calling kettle - Thursday, Jan 29, 15 @ 10:40 am:

    (The “little guys” are actually losing big time.)


  4. - Gathersno - Thursday, Jan 29, 15 @ 10:41 am:

    ..and how much will be needed for addiction services as a result?


  5. - jerry 101 - Thursday, Jan 29, 15 @ 10:45 am:

    now, just legalize weed.

    Grow the Illinois economy, and save money on prisons and policing.


  6. - Robert the Bruce - Thursday, Jan 29, 15 @ 10:47 am:

    I love that “I constantly hear from people who say they can just go down to the corner bar and play the slots, rather than driving to a casino,”
    appears to be his best argument for restricting gambling elsewhere.

    It’s more convenient for people to do what they want - let’s get government to intervene to stop that!


  7. - Amalia - Thursday, Jan 29, 15 @ 10:47 am:

    to those who talk about addiction or spending by those who don’t have the money, I wonder if my avid sports viewing would be seen by some as spending too much. between cable fees that I must pay if I want to see games live, or even via on demand, season tickets, individual games, not to mention sports memorabilia and wearables, it really adds up. It’s how I choose to spend money. others choose gambling. I like choices.


  8. - Leroy - Thursday, Jan 29, 15 @ 10:48 am:

    Everyone wins.

    How can you not love a story like this?


  9. - Anonymous - Thursday, Jan 29, 15 @ 10:51 am:

    Isn’t a big beneficiary of the casino revenues the schools? So by declining Casino profests in favor of local gambling aren’t we shifting funds from education to non-roads capital funds?

    Just looking for clarification


  10. - Team Sleep - Thursday, Jan 29, 15 @ 10:51 am:

    An auto repair and body shop on the north end of Springfield applied for liquor and video gaming licenses. The owner was denied, but that really shows who mainstream this has become. The comments on the SJ-R and WICS Facebook pages were priceless.


  11. - Illini97 - Thursday, Jan 29, 15 @ 10:51 am:

    So, in the last year state revenue from video gaming is up about $90 million. Casino revenue is down $87 million. So, it’s effectively a wash?

    Given that bars aren’t generally employing significantly more people when they add machines and casinos are laying people off with reduced revenue, is this a net loss for the State, actually?


  12. - Wordslinger - Thursday, Jan 29, 15 @ 11:00 am:

    When’s the last time you saw or heard a spot for an Illinois casino?

    Ho Chunk in Milwaukee, the Indiana casinos, even Four Winds in New Buffalo are on the air all the time.

    Illinois casinos have state authority to run house-rules games. They can’t lose. All they have to do is get the people in the door.

    You’re hustlers, so hustle.


  13. - Anonymoiis - Thursday, Jan 29, 15 @ 11:16 am:

    Casinos across the river and state lines have upped their game significantly, while illinois counterparts have done nothing to improve. St Louis has a huge shiny Vegas style casino that has a resort hotel and sponsors sports events and big concerts. A mile east over the river the Casino Queen has a billboard or two. Sure, blame the small bars. Im guessing a good percentage of the revenue from bars was still spent there before, it was just illegal and not reported


  14. - OneMan - Thursday, Jan 29, 15 @ 11:22 am:

    Keep in mind the big winners in the video gaming are the truck stops…


  15. - Stones - Thursday, Jan 29, 15 @ 11:23 am:

    How can the State ensure that bar video games aren’t rigged?


  16. - Bogey Golfer - Thursday, Jan 29, 15 @ 11:27 am:

    The Elgins, Auroras, Joliets and East Peorias are experiencing some lost revenue while many towns have increased a slight uptick. At least the shorter drive reduces the carbon footprint.


  17. - OneMan - Thursday, Jan 29, 15 @ 11:34 am:

    How can the State ensure that bar video games aren’t rigged?

    Well the machines report revenue to the state, and if you look at them, they all have about the same payout rate, so there is that.

    If in terms of the machines being rigged to payout to some folks but not others, they have cameras and licensed techs, again anything is possible but relatively speaking the hassle of doing it vs the reward isn’t really there.


  18. - Mouthy - Thursday, Jan 29, 15 @ 11:34 am:

    Make that parted and not separated. More fast, fat fingers on the “Say It” button.


  19. - DE - Thursday, Jan 29, 15 @ 11:35 am:

    Of course you still can’t play the machines at the ractracks, but most of them will be vacant land soon anyway.


  20. - Todd Gak - Thursday, Jan 29, 15 @ 11:39 am:

    Anon, that is correct. Majority of video gaming revenues go to the Capital Projects Fund, while casino revenues primarily go to Education Assistance Fund.

    The other issue is the difference in tax structures. Flat 30% for video gaming vs. graduated structure dependent on AGR for casinos. 2014 effective rate was almost 35% across all casinos and considerably higher at Rivers.


  21. - Wordslinger - Thursday, Jan 29, 15 @ 11:39 am:

    The machines are “rigged” to be profitable. That’s the point of the exercise.


  22. - Mouthy - Thursday, Jan 29, 15 @ 11:48 am:

    “The machines are “rigged” to be profitable. That’s the point of the exercise.”

    One hundred percent correct just like every other form of government sponsored gambling. They should call it the “Hey lets have some fun and give our money away” tax.


  23. - Springfieldish - Thursday, Jan 29, 15 @ 11:48 am:

    The video poker short game might be paying some, but it is a net loss for Illinois. Free standing casinos mean construction, as opposed to video gambling parlors in store-fronts, living-wage jobs, as opposed to multiple part-time shifts of “attendants” to avoid benefits, and ancillary revenue from restaurants and hotels on-site and in its environs, as opposed to neighboring store fronts seeing a loss of traffic because of perceived “sketchy” presence. The issue is becoming how to get this genie back into the bottle before every casino developer just says, thanks, but no thanks.


  24. - Hacksaw Jim - Thursday, Jan 29, 15 @ 11:54 am:

    Never understood the allure of the one-armed bandit. I prefer dice and cards as my favored form of gambling entertainment. With that said, I haven’t been to a casino in a few of years.


  25. - OneMan - Thursday, Jan 29, 15 @ 12:06 pm:

    Hacksaw Jim

    I would suggest a book…

    http://www.amazon.com/Addiction-Design-Machine-Gambling-Vegas/dp/0691160880

    Very interesting read.


  26. - Formerly Known As... - Thursday, Jan 29, 15 @ 12:08 pm:

    ==Everyone wins.==

    Except the really little guys who really lose. That $164.8M comes out of someone’s pockets, voluntary and addicted alike.


  27. - bullet - Thursday, Jan 29, 15 @ 12:14 pm:

    the revenue is being spread around for a change,local bar or restaurant,town or village,many employees ,etc.etc..instead of the casino’s and the state only.


  28. - Illini97 - Thursday, Jan 29, 15 @ 12:21 pm:

    I suspect there may be some unintended consequences occurring here. It’s been noted that this is redistributing revenue from Education to Capital Projects. The total change is effectively zero, but the manner in which it is spread is different. Was that the legislative intent?

    As Springfieldish noted, this is also taking down the large buildings, with many employees inside to the benefit of small buildings with (generally speaking) no more employees in them than before.

    I’m not judging either of these things as necessarily good or bad, but they are lasting effects of a policy change. And I’m not sure all of those effects were considered.


  29. - Mouthy - Thursday, Jan 29, 15 @ 12:22 pm:

    “the revenue is being spread around”
    The revenue, as you call it, is people’s money that might have saved it or spent it on something that would actually benefit themselves or their families. The argument that because it’s the local owners that get the cut instead of casinos and the state is really on who gets to fleece the people.


  30. - Demoralized - Thursday, Jan 29, 15 @ 1:23 pm:

    ==who gets to fleece the people==

    How is it fleecing? Nobody is forced to gamble. The only fleecing that takes place is if you choose to let yourself be fleeced.


  31. - Weltschmerz - Thursday, Jan 29, 15 @ 1:23 pm:

    What is really unfair, is that the states got their ideas from The Outfit and there are guys in prison for being visionaries. How long before “Soma” lounges are licensed and taxed?


  32. - A guy - Thursday, Jan 29, 15 @ 1:25 pm:

    The little guys will become victims of the law of diminishing returns soon enough too.


  33. - Anon - Thursday, Jan 29, 15 @ 2:15 pm:

    The biggest losers? Lower income Illinois residents


  34. - Hacksaw Jim - Thursday, Jan 29, 15 @ 2:15 pm:

    Thanks for the suggestion OneMan. It looks like its an interesting read. I’ll make sure to grab a copy.


  35. - zatoichi - Thursday, Jan 29, 15 @ 2:39 pm:

    Spend $2.4B and get $1.7B back which is a 30% loss. Let me have more of that deal. But you can make it up on volume.

    The regular gambling crowd is a fairly static size. More casinos are not going to double the volume of people who gamble. It is just more bucks from the same pot of money.


  36. - Mama - Thursday, Jan 29, 15 @ 2:52 pm:

    “they can just go down to the corner bar and play the slots, rather than driving to a casino,” That is a bad thing??? I believe it is a good thing help my local community earn more money. Who cares if the boats decide to pull their anchors in IL? People still go to Vegas to gamble. Perhaps the boats should start offering entertainment - big bands, etc. to help pick up business.


  37. - Mama - Thursday, Jan 29, 15 @ 3:07 pm:

    I learned something new today, and I’m shocked! All gambling proceeds should be earmarked for education. The schools need those funds. You can not tell me the legislators did not know the schools would lose revenue from the gambling machines when they moved the proceeds from the gambling revenues!


  38. - Mouthy - Thursday, Jan 29, 15 @ 5:23 pm:

    ===How is it fleecing? Nobody is forced to gamble. The only fleecing that takes place is if you choose to let yourself be fleeced.===

    As a group the people that play video poker lose by design. They get fleeced just like the people that “voluntarily” use a payday loan outfit.


Sorry, comments for this post are now closed.


* Question of the day
* Rauner calls marijuana a "very dangerous drug" as he plans court appeal
* *** UPDATED x3 - Pritzker, Biss, Kennedy respond *** Rauner campaign echoes Blagojevich demand to release the FBI tapes
* Jimenez wants Sangamon County to get priority for most new state jobs
* Ives' state budget solution: Slash CPS funding and repeal Obamacare expansion
* *** UPDATED x1 - Ives responds *** Rauner promises to patch $2.3 billion hole, balance next year's budget, start rolling back the tax hike and provide "record funding" for K-12
* Dick Uihlein gives Proft group another $3 million
* Legionella bacteria might have been found at Capitol Complex
* *** UPDATED x1 *** Unclear on the concept
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............
<


Loading


* Burr Ridge holds off on legal action against Ho.....
* Rauner calls marijuana a “very dangerous drug” .....
* Top Regional News: Rauner rolling back income t.....
* Democratic governor candidates to have 1st tele.....
* Joe Walsh — who promises to vote for Chuy Garci.....
* Democratic governor candidates to have 1st tele.....
* Democratic governor candidates to have 1st tele.....
* Democratic governor candidates to have 1st tele.....
* Democratic governor candidates to have 1st tele.....
* Democratic governor candidates to have 1st tele.....


* Ex-doctor gets 20 years for trying to kidnap prosecutor
* Legionella bacteria possibly at Illinois Capitol Complex
* Democratic governor candidates to have 1st televised forum
* Police: Man who shot at motorist was angry about truck crash
* Retrial to begin in 1995 arson, murder case
* Popular Lincoln sculpture in Bloomington needs cleaning
* Bill would require state jobs be located in Sangamon County
* Legionella bacteria possibly at Illinois Capitol Complex
* Board approves plan to create Will County's 1st solar farm
* William Cousins, prominent in Illinois law, dead at 90

* Former Springfield Ald. Jobe added to State Fair Advisory Board
* Democratic governor candidates to have 1st televised forum
* Popular Lincoln sculpture in Bloomington needs cleaning
* Legionella bacteria possibly in Capitol Complex water system
* Rauner wants to 'step-down' income tax increase
* Sangamon County should get first dibs on state jobs, lawmaker says
* Report: State agencies holding nearly $2.5 billion in bills
* Illinois lawmakers hold hearing on marijuana legalization
* Illinois hunters harvest 2 percent more deer than last year
* New session will bring new efforts at pension reform

* Tax winnings in hand, Chase shares some with 2,700-plus local workers
* Chicago Stock Exchange bidders may seek extension
* Naf Naf to debut new stores, franchise program
* Tick tock: Bid for Chicago exchange involving Chinese investors delayed
* Chinese-backed bid for Chicago Stock Exchange hits a snag


* Man tries to kidnap girls in Fuller Park
* Blachawks goalie Corey Crawford works out again, could be on the ice ‘soon’
* Mary J. Blige thrilled at becoming a double Oscar nominee
* LETTERS: Change state constitution and make pensions less generous
* Legionella bacteria possibly at Illinois Capitol Complex
* Police: Man in custody after holding girlfriend, kids hostage in Riverdale
* Schumer takes back wall offer in new immigration push
* Bulls guard Zach LaVine is finding out that minute restrictions have no give
* Alex Rodriguez, Matt Vasgersian join Jessica Mendoza for ‘Sunday Night Baseball’
* Rahm’s running mate rises to defense of potential mayoral challenger


* 'The Shape of Water' leads Oscar nominees with 13 nods
* 2 dead, 19 injured in rural Kentucky high school shooting; suspect held
* Bank of America ends popular free checking option, causing customer uproar
* Man dead after Evanston apartment fire
* Hush money President Trump’s lawyer allegedly paid porn star Stormy Daniels broke election laws, new complaint charges 
* Flu season causes more challenges for Barrington-area blood banks this winter
* Joe Walsh — who promises to vote for Chuy Garcia if he's proved wrong — is proved wrong
* Are the Bears exciting now?
* P&G CEO says company working to stop 'Tide pod challenge'
* Trial date set for former Lincoln-Way superintendent Lawrence Wyllie's federal fraud case


» State Pays $1 Billion In Late-Payment Charges
» CHA To Add More Mixed-Income Housing In Bronzeville
» National Study Hammers Illinois Budget Practices
» Hundreds Of Thousands Gathered For Women's March In Chicago
» Women's March Chicago Stays on Message - Get to the Polls
» Chicago Schools Chief: Cost A Driver In Special Ed Overhaul
» One Year Later, Women’s March Demands More Than Attendance
» State Week: Education Funding, Pritzker-Blagojevich, Rauner-Duke
» Sheriff Offers To Help Review Police Shootings In Suburban Cook County
» A Prescription For Fruits And Veggies: One Solution To Food Insecurity in Illinois


* Democratic governor candidates to have 1st televised forum
* Popular Lincoln sculpture in Bloomington needs cleaning
* Legionella bacteria possibly in Capitol Complex water system
* IBHE: There is a need for bold changes for Illinois' higher education system
* Rauner wants to 'step-down' income tax increase
* Sangamon County should get first dibs on state jobs, lawmaker says
* Report: State agencies holding nearly $2.5 billion in bills
* Illinois lawmakers hold hearing on marijuana legalization
* Illinois hunters harvest 2 percent more deer than last year
* New session will bring new efforts at pension reform


* Iowa jobless rate dips
* Tiny and high-tech: QC Fuel offers coffee and more in Moline
* 2 dead, 19 injured in Kentucky school shooting; suspect held
* Former massage therapist to serve 16 years for sexual assault
* You could soon save money on electricity and natural gas. Here’s why.
* This is what America must do to end its problem with race, Bishop Braxton says
* Harrisburg man gets 20 years in attempted kidnapping of prosecutor; in jailhouse tapes, he offered $1K for the job
* UPDATE: I-74 reopens after crash spills cash
* Bishop Edward Braxton talks about being racially profiled in Chicago
* Noon update: Breezy afternoon, oscar nominations and Super Bowl data bank


* Despite resident objections, Buffalo Grove board approves plans for 187 homes
* 7 take-aways from the 90th Academy Awards nominations
* Officials working to identify Addison fire victims
* CEO says company working to stop 'Tide pod challenge'
* The Latest: Trudeau announces Pacific trade deal without US

* Bipartisan Illinois criticism follows Trum...
* US places Pakistan on special watch list f...
* Letter: Talk to tax preparer about GOP tax...
* Our view: End patronage at Algonquin Towns...
* Letters to the editor: Election commission...
* Teacher raised in Yorkville running agains...
* Suburban Democrats line up to challenge Ro...
* Dissident artist Ai Weiwei and US Rep. Ran...
* Lawmakers back renaming Warrenville post o...
* Subcommittee on Financial Institutions and...

* This RSS feed URL is deprecated...
* Durbin: Schumer Took the Wall Off the Nego......
* 'Terrorizing' Congress?! Ingraham Hits Bac......
* Chuck Schumer yanks offer to fund border w......

* This RSS feed URL is deprecated...
* Dick Durbin's not the only Illinois Senato......

* Two gubernatorial candidates support repealing Illinois’s rent control ban
* Academy Awards 2018: The Oscar nominees
* Hitting Left with the Klonsky Brothers. Episode #48. Amber Smock, people with disabilities advocate and activist.
* Sketchbook.
* Ahead of Janus, union haters are collecting teacher names.
* Two more candidates removed from ballot
* Documentary on violence in Roseland
* Martin D. Reggi fundraiser set for January 25
* Moore withdraws from countywide McGinnis race
* In 1924 Maxwell Street regular Daddy Stovepipe became one of the first bluesmen ever recorded


* Illinois Awarded Funds to Offer Advanced Training on Detecting Impaired Driving
* Illinois EPA Announces Upcoming Household Hazardous Waste Collection Events
* IEMA Highlights Emergency Preparedness for People with Access and Functional Needs in May - Ready Illinois website offers preparedness tips for people, caregivers
* First Lady Launches Illinois Family Connects
* Governor and Lt. Governor Unveil 2016 Journal of Local Government Shared Service Best Practices

  
* HomePod AppleCare+ plan will cost $39
* RED’s ‘holographic,’ ‘SOLID’ Hydrogen phone will ship this summer
* The iPhone X was the top shipping smartphone over the holidays, according to analysts
* YouTube TV and Hulu pick up 750,000 subscribers
* [TA Deals] Pick up the Ethical Hacking A to Z bundle for just $19 right now
* Apple Releases New Beta Software for HomePod
* Apple Releases Minor tvOS 11.2.5 Update With Bug Fixes and Security Improvements

* Notable 2018 Spring Training non-roster invitees
* Anderson on mission after challenging 2017
* Burger third among top third-base prospects
* Burger among MLB's Top 10 3B prospects
* Kopech, Jimenez among White Sox NRIs
* Baseball America top 100, Sox-Brewers rumors, and other reading
* Advocating for retired non-numbers


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress




Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller