The pot continues to thicken for video gaming

In 2013, about $12.8 million was paid into gaming terminals at establishments with licenses issued by Sterling, Dixon, Rock Falls, Lee County and Whiteside County, according to the monthly reports from the Illinois Gaming Board.

From January through July of this year, that figure increased to $16.4 million, while the number of terminals in establishments increased from 243 to 276. Only Lee County reported having fewer terminals in 2014 than in 2013 – 36 and 39, respectively.

By law, only certain businesses are permitted to have gaming terminals, including those with a liquor license allowing alcohol to be served, like a bar or restaurant, or a truck stop or a veteran’s group, such as an American Legion hall.

Glenn Leonard is director of compliance and security with Gold Rush Amusements, a company that provides the gaming terminals. He said the increase in the number of terminals is a result of the profitability and small investment.

“The establishments have very little invested in the games,” he said. “They provide the space and license and electricity. The significant investment is ours.”

The increased popularity of the games, he said, can be attributed to the low wagers and payouts, meaning they’re attractive to a larger portion of the population.

The money paid out by the machines increased from $9.3 million in all of 2013 to $11.8 million in the first 7 months of 2014. But that is due to an increase in the total amount of money that was played, not a higher rate of winning.

In 2013, on average, 29 cents of every dollar put into a gaming terminal was a loss to the player. In 2014, 28 cents of every dollar put into a terminal was a loss, on average.

Thirty percent of those losses, which are revenue for the terminal, are sent to the state and license-issuing municipality as tax. And 70 percent is split between the establishment and terminal provider – like Gold Rush Amusements – depending on the individual agreement.

In both 2013 and so far in 2014, Dixon received the most revenue from the terminals. Dixon’s 96 terminals at the end of July 2014 were 40 more than Sterling, the next highest.

In the nearly 2 years since terminals started making their appearance in the area, Dixon has received $163,881 – almost twice Sterling’s $87,786 during that time.

Dixon Mayor Jim Burke said the city had not decided on a specific use for the money, but said Commissioner Dennis Considine had floated the idea of using it for a youth program.

“I know that there has been some conversation about it,” Burke said. “... I think it would be a good idea to maybe earmark that for different things.”

Highlighting the terminals’ profitability for businesses, several Dixon gas stations approached the city in May to ask to be given liquor licenses to serve alcohol so they, too, could have gaming terminals.

That idea was quickly shot down by the City Council in a unanimous vote, and this week Burke said he didn’t think expansion of video gaming to other establishments was necessary.