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 In 2009, the state of Illinois took an interest in the “for
entertainment only” gaming machines that were housed in many clubs
and taverns throughout the state. The state perceived the gaming as
a new revenue source and took measures so as to have more control
over the past time.
Though it took a few years to get a new system established, all
gaming is now connected to a central computer system with the state.
The games now pay out cash winnings to players. Local establishments
housing the games make a cut on the gaming profits, as does the
local governing bodies, such as the city of Lincoln, with the
biggest portion going to the state.
The rules provided that taverns and restaurants with a liquor
license would be permitted to have the machines, along with truck
stops. Throughout the state, and in the City of Lincoln, this became
a controversial topic. The issue became, would this lead to gambling
addictions if allowed, and would it kill some local businesses if
denied.
 The city finally moved to allow the gaming. The result has been that
the local establishments are gaining revenue, as is the city. To
date, no one has said that the machines have caused any problems
with local crime or addiction.
However, with all this, one problem that is arising around the
state. Businesses are opening as clubs, taverns, or restaurants
serving alcohol while the true purpose is to serve as a gaming
parlor, where the majority of the revenues come from the gaming
machines.
Tuesday night, Snyder said that he wanted to amend the current
liquor ordinance, doing something similar to what was done recently
by the city of Springfield.
The amendment would be made to City Code 3-7-5 Classification of
Licenses; Hours and Fees, and would add a subparagraph “M.” That
paragraph would state:
“No licensee or applicant whose place of business obtained an
initial license or permit for the sale of alcohol on or after
February 15, 2015 and who operates a video gaming terminal and fails
to derive at least sixty percent (60%) or more of its gross annual
revenues from sources other than video gaming terminals may renew
its license or permit.”
During the discussion portion of this topic, Marty Neitzel asked
about the 60 percent provision. Snyder said terminology used was
‘sale of other items.’ Those other items could include food,
alcohol, or other retail products offered by the licensee, as long
as the total met or exceeded 60% of the gross revenue.
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Snyder said that the businesses with licenses are required to
report their annual sales, broken down by category. He said that
implementing this ordinance would not prevent any business from
coming in and saying their intent is to draw 60% of its revenue
from the sale of “other items." However, after that first year
of experience, if the business’ annual report shows that it
failed to meet that requirement, the city then will have the
authority to revoke the license.
Michelle Bauer asked if this would enable gas stations. City
attorney Blinn Bates said it would not. Several local gas
stations had requested the city create a ‘pour license” for
their businesses, but the city denied that request. Bates said
without the pour license gas stations would still not be able to
offer gaming.
The question was posed by Todd Mourning as to how this might
affect existing businesses that already have gaming. The new
amendment will take effect from February 15th of this year
moving forward. For this reason, existing businesses will not be
subject to this new rule.
At the end of the discussions, it was unclear if all the
questions had been answered satisfactorily. Snyder said that he
could and would contact the city of Springfield and talk with
them about the ordinance they have just passed. He ended the
discussion with, “We will circle back to this at another time.”
In general, the aldermen did appear to be in support of the
change, but at the moment, it is not expected to be on the
voting agenda for February 2nd.
[Nila Smith]
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