Consider this data to grasp the impact of gambling locally: $57.6 million was put into video-gaming terminals last year in Bloomington, which collected $730,795 in gaming tax revenue.
The state's share, minus the winnings paid out, was 25 percent, or about $3.7 million.
That last detail that government gets a cut of the action from every transaction is one of the important things about the explosion of state-licensed video gaming, which Illinois legalized in 2012. It makes gaming an important revenue stream to municipalities at a time of tremendous financial uncertainty in Springfield.
And therein lies the risk. This money cannot be seen as a permanent fix to budget problems.
Yes, people should be able to spend their money however they want. And business owners have every right to make money. However, we cant shake the troublesome feeling that video gaming sites are targeting those who can hardly afford it, and governments are the fiduciary equal of accessories after the fact.
As Bloomington Mayor Tari Renner noted, in response to Bloomington being in the top 10 among video gaming cities, "I want to be in the top 10, but not with that type of distinction."
None of the venues are very big, since Illinois law limits the number of terminals to five at any one site. Bloomington has 241 terminals at 55 licensed locations. Normal had 58 terminals at 12 locations. Wagers are typically small and, according to state data, payouts are frequent.
But lets be real: These terminals are not benign. Theyre engineered to get you to risk your money. That thousands and thousands of dollars vanish into them instead of "buying local," supporting local restaurants or paying tuition is disheartening, even if some ends up in municipal coffers.
This puts government officials in a curious Catch-22: With state finances an unmitigated mess, gambling in all forms is a lucrative revenue stream. Last month, a developer announced plans for a Sangamon County casino, although gambling expansion has been a major General Assembly battle. Other legislation would tax fantasy sports betting online. Thats how big a market were talking about.
It all seem a little excessive, doesn't it?
In Champaign, the city council has extended a temporary moratorium on new video-gaming businesses. Decatur also has pumped the brakes on gaming parlors, capping the number citywide at 30, and requiring new ones to be at least 1,500 feet from another one.
The Normal Town Council last fall passed an ordinance requiring gaming to be at least 200 feet from residences. In 2013, the Bloomington City Council amended the city's liquor ordinance to prohibit establishments whose primary focus is video gaming.
Thats the reason municipalities must be careful about oversaturation and where gaming is allowed. Five years after the state legalized video gambling, its tempting to see such cash flow as a way to prop up budgets, but we cant operate on the backs of gamblers.
Its a bet we should not be willing to take.
Excerpt from:
Editorial: Gambling not the way to prop up budgets - Bloomington Pantagraph
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