Council to decide if video gambling will continue in st. charles kane county chronicle function of chicken gizzard

However, the city council included a sunset clause in the ordinance to repeal it automatically after 18 months – a trial period they wanted for video gambling.

On march 5, aldermen will take a preliminary vote during the government operations committee on whether to rescind that automatic repeal and allow video gambling to continue after the end of april, police chief james keegan said.

Fourth ward alderman steven gaugel opposed lifting the video gambling ban in 2015. But currently he has mixed feelings about the issue and hasn’t decided how he will vote in march.

“I feel it is in the best interest of the city of st. Charles to reduce our financial dependency with the state of illinois, but I am unsure that pulling the plug on video gaming is the right answer for st. Charles today,” he said.

The state tax on video gambling proceeds is 30 percent, with one-sixth of that amount going to municipalities where the revenue was generated.Gambling machines


Gaugel noted that the city’s portion of illinois’ video gambling tax from st. Charles is helping make up for the state’s recent reduction of local government distribution funds.

“the [tax] revenue generated from video gambling last year amounted to just under $100,000,” gaugel said. “without video gaming, and with the 10 percent reduction in LGDF revenue, the city would see an approximate $450,000 reduction in revenue annually.”

“removing video gaming now has the potential to be detrimental to our businesses, and not only the businesses that have video gambling, but other businesses that potentially benefit from the increase in traffic,” gaugel said.

The city council’s newest alderman, lora vitek, also has not decided yet how she will vote next month. Vitek was elected in april 2017 to fill the 4th ward aldermanic seat vacated by jo krieger, who voted against lifting the video gambling ban in 2015.

Since taking office, vitek’s approach has been to wait and see what impact video gambling had on the community, its businesses and local crime, she said.Video gaming so far, she has not seen any negative impact.

Keegan has not brought any violations of video gambling rules to the city’s attention within the last 10 months nor has he raised any concerns during his monthly activity reports, vitek said. She added that other residents she has spoken to don’t notice the presence of video gambling in st. Charles unless they walk into an establishment where it is present.

“st. Charles is still the same st. Charles it was before video gaming,” vitek said. “video gaming has been positive for st. Charles businesses that have opted for gaming on their premises.”

Under the 2009 illinois video gaming act, municipalities and counties can allow up to five gambling machines in establishments with liquor licenses, or they can ban them entirely in their jurisdictions.

The total number of video gambling machines at 13 licensed st. Charles establishments is about 60. One business, alibi bar and grill, recently removed its five machines for lack of performance.Gambling machines

Several other st. Charles businesses including onesti entertainment corp., which operates the arcada theatre, have applied to the illinois gaming board for approval of video gaming licenses. If the state approves those applications, the establishments then may file for a gaming license with the city, keegan said.

In one year starting in september 2016, people spent $24.8 million on legal video gambling in st. Charles and won $22.8 million at 14 locations, from brown’s chicken and pasta to the st. Charles moose, the city reported.

After taxes, businesses kept the remaining 70 percent of their video gambling proceeds – about $1.4 million for september 2016 through november 2017.

The new revenue that video gambling generated in 2017 for the st. Charles moose from five video gambling machines – about $55,000 – has helped the organization to stay open and increase its charitable endeavors, said its treasurer, jim buenrostro.Video gaming

The moose has used its video gambling revenue to provide its hall free to nonprofit groups, such as the boy scouts and casey’s safe haven for fundraisers and lifeline for health screenings.

Concerns three years ago among st. Charles officials about video gambling included uncertainty that the state would disburse those tax dollars on a timely basis. Since the first video gambling revenue was generated in st. Charles in 2016, typically there has been a two-month lag in the monthly state tax disbursement to the city, keegan said.

“this is not anecdotal, this is real,” payleitner said. “the projections made when this came to pass now have st. Charles names and faces. Shame on us.”

She believes that no dollar amount brought in by video gambling to the city can justify the detriment brought to even one family in st. Charles.

“I’ve heard video gambling is the same as playing the lottery or a friendly game of poker,” payleitner said.Gambling machines “ignoring the social ills of, and science behind, the destructive addictive behavior caused by video gambling doesn’t make it less so.”

“we must take great pride and responsibility for the decisions we make,” payleitner said. “we must, at all costs, avoid any decisions that may cause harm.”

As for the city’s take of less than $100,000, payleitner said, “big deal – a far cry from the half million plus promised by video gambling proponents.”

She disagrees with people who believe video gambling is OK as long as st. Charles does not allow the signage and flashing lights often associated with it.