Wednesday, January 26, 2011
 
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To gamble or not: Community invited to speak on video gaming

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[January 26, 2011]  The Lincoln City Council will conduct a public hearing Feb. 22 regarding the issue of legalized video gaming in the city.

The public is invited to attend this meeting and speak out on the issue if they so choose. In order to be recognized on the floor, those who wish to speak will need to fill out a guest speaker form provided at the beginning of the meeting, and they should plan on keeping their comments to a length of no more than five minutes.

At the last committee-of-the-whole meeting of the council, Alderman Tom O'Donohue had asked that aldermen come prepared to discuss the issue this week.

Currently there are a number of establishments in Lincoln that have video gaming machines labeled as "for entertainment purposes only."

In 2009 the Illinois Legislature passed new laws regarding video gaming. The new law establishes gaming with a cash payout to winners and will require that new state-approved machines replace those that currently exist. With this law, the old machines would be made illegal and would have to be removed from businesses.

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The new machines were slated to be put into place last year, but complications on a state level have delayed that. The state is now anticipating that the new machines will be available sometime in mid- to late summer this year.

Rebecca Van Nydeggen, Salvation Army director in Logan County, addressed the council at Tuesday night's committee-of-the-whole meeting, speaking out against this form of legalized gambling.

Included in her presentation was a seven-page handout that offered a great deal of information regarding the economic impact of gambling on families.

She said that problem gambling affects home life on a personal and financial level, and those effects become a financial problem for municipalities as well as community service agencies such as Salvation Army.

She noted that the cost to the community would come from lost revenue, lost taxes, loss of jobs and productivity, increased costs in law enforcement, increased social costs, and irreplaceable funds due to bankruptcy, theft or embezzlement.

Van Nydeggen noted that statistically it is inevitable that some consumers will become problem gamblers as a result of these new machines.

She noted that with a population 15,369, based on the 2000 census, there are approximately 11,473 people in the city of Lincoln who are of legal age. She said that if even 4 percent of the population developed a gambling problem, it would equal 459 people.

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She noted the following cost statistics per person:

  • Criminal costs -- the cost to apprehend, adjudicate and incarcerate, rehabilitate, plus the cost of added police officers for enforcement: $3,998.

  • Business and employment -- the cost of lost productivity, lost time and unemployment, and the cost of using sick days off for gambling: $3,995.

  • Abused dollars -- money obtained from family, friends and employers under false pretenses: $3,834.

  • Illness -- the cost of treatment for gambling-related sicknesses such as depression, stress, cardiovascular disorders, headaches and more: $700.

  • Social services -- government costs for therapy, unemployment and other social services, including welfare and food stamps: $631.

  • Bankruptcy -- lawsuits, legal costs and bill collection: $316.

  • Family costs -- costs related to divorce separation, spousal abuse and child neglect: $111.

Based on these figures, which were provided from a study conducted at the University of Buffalo's Research Institute on Addictions, this comes to a total of $13,586 per person.

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Van Nydeggen said that with only 459 individuals becoming problem gamblers, the economic impact through these various categories would add up to $6,235,974.

She also noted that if the 4 percent were applied to the population of the entire county, the result would be 973 problem gamblers and the economic impact would jump to $13,219,178. She said that the countywide impact was important to the city because the majority of Logan County residents work and spend in Lincoln.

Van Nydeggen closed by saying: "I can tell you with an annual budget of less than $100,000 for direct assistance in Logan County, there is no way that The Salvation Army or any other benevolence agency in the county can absorb a cost of $6,000,000. I encourage you to ban this in every jurisdiction that we possibly can."

During the discussion of this topic Mayor Keith Snyder said that an ordinance to ban has been drafted and the city has the option to ban or do nothing.

According to state law, municipalities may pass a ban on the new machines, or they may do nothing. Doing nothing would be equal to agreeing to have legalized gambling in the city.

Snyder suggested that the council might wish to take this to a committee or perhaps have a public hearing on the issue.

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O'Donohue said he'd be in favor of a public hearing. He said that in council chambers some have already come forth speaking out against the issue, but on the streets of the city he personally has heard more from people who want the gambling. He said he thought the council should hear from the public as well as the businesses that will be affected by the decision.

Alderman Buzz Busby asked about whether the existing machines could stay in local businesses after the new machines are banned, and the answer from attorney Bill Bates and O'Donohue was no. The machines have annual permits, and once the 2010-11 permit expires, those machines will have to be removed if the new ones are available.

Busby then reminded the council that losing what exists now will mean a loss of $24,000 per year in revenues for the city.

Alderwoman Melody Anderson also spoke up, saying that she was in favor of a hearing. She noted that over the last year, a handful of people have come forward to speak on the issue, with only one being in favor and the rest opposed. She said she felt like the public had a right to be heard on the issue.

In the end, it was agreed to have a hearing on Feb. 22. The meeting will begin at 6 p.m. and last for one hour, as that will also be a regular voting session night for the council.

It was also noted that if the turnout for the hearing is large and not everyone gets the opportunity to speak, a second hearing could be called. That will be determined on Feb. 22 based on public participation.

[By NILA SMITH]

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