Business owners, religious leaders and community members gathered at the Village Administration building to discuss the potential impact of video gaming on the Mahomet community Tuesday night.
In 2009 the Village voted to pass an ordinance against the use of video game terminals within Village limits while the state of Illinois finalized the terms under which the machines would be legal. At that time, the trustees agreed to bring the topic back up for discussion.
In 2012, the state decided to legalize the terminals in licensed retail establishments where alcohol liquor is served, certain truck stop establishments, and licensed fraternal and veteran establishments.
Recreational video game terminals were located at the Hideaway Restaurant and Uncle Buck’s within the Village limits from 2007 to 2009. Located just outside Village limits, Lake of the Woods Bar and Liquors currently has video game terminals.
Within Illinois law, each licensed establishment is allowed up to five gaming terminals which play a video game upon insertion of cash. The machines give free games or credits that can be redeemed for cash. Patrons are limited to a $2 bet, and can receive a maximum $500 payout.
By law, all video game terminals must be roped off in a section of the establishment where only patrons over the age of 21 can enter.
Of the 12 liquor licenses in Mahomet, only eight establishments are eligible for a video gaming license. Currently only two establishments, JT Walker’s and Main Street Wingery are interested in the potential to bring in machines.
JT Walker’s owner, Justin Taylor and Main Street Wingery owner, Rich Minick said the video gaming machines will help support their business in an already tough industry.
In the face of increasing food prices, taxes and the potential for a minimum wage increase, both owners believe the access to video gaming terminals may give them the financial boost needed to continue to offer their product at a reasonable price.
Just as the state passes increased costs down to business owners, business owners pass the costs of higher taxes and increased costs down to the customer. The owners know they can only take the price increases so far before customers begin to look elsewhere for a similar product.
Former Hideaway owner Bobby Slade, who got out of the restaurant business after 20 years, talked about the struggles his business faced in a highly competitive Champaign-area market. Slade began a catering business to supplement for sluggish lunch crowds and a tight economy while in Mahomet.
While he did not state the video gaming terminals would have saved his business, Slade believed they may have helped him stay afloat.
Slade said he often felt the business effects of an unlevel playing field with the Champaign market. He mentioned intoxicated customers would leave his establishment to go to Champaign because he had to close his doors at midnight due a Village curfew.
Although neither Minick or Taylor have committed to installing the machines in their establishment, they want to have the option.
“It’s not something we want to do; it’s something we want to decide if it’s right for us, and give customers that option, too,” Minick said.
Taylor said he will have to look at his space constraints, and whether it makes sense for JT Walker’s financially, but he would like to have the freedom to install the machines should he choose to do so.
The business owners believe the addition of terminals will keep customers in Mahomet when they may go to Champaign, Mansfield, Monticello, St. Joseph or Savoy to eat or drink while they gamble.
But opponents of video game gambling believe there are other ways to promote both business and residential growth in the Mahomet area. Residents believe diverse shopping options and pathways throughout the community will benefit the restaurants.
“I don’t want to see small businesses fail,” said Mahomet resident Lois Reed. “They are great resources in Mahomet. But let’s find healthy things to draw people to town.”
Former Village Trustee Gerald Smith said he knows there are roads to be fixed and programs to fund on a limited budget, but he encouraged the board to wait three or four years before making a decision. At that time, he believes the Village will be able to see the long term benefits or struggles in other communities before bringing the terminals to Mahomet.
First Baptist Church Pastor Brian Romanowski noted the addition of video gambling terminals within the Village does not make economic sense as 60 percent of the revenue will leave in Village in state taxes and manufacturer shares.
The Village receives only a five percent taxes from the terminal revenue. Brown believes this amount will be similar to the approximately $1,200 St. Joseph sees monthly. Establishments hosting the terminals receive 35 percent of the profit.
Romanowski contrasted video game gambling as a passive activity to the already available lottery, which is currently available at grocery stores and convenience stores throughout Mahomet. Dale Smoes added that an addicted gambler can place up to 900 bets per hour in a video gambling machine.
“People have a choice to drive 100 miles per hour in front of schools,” Romanowski said. “But this is why we have laws.”
Trustee Don Lynn later noted he knows people with similar lottery addiction problems.
Professor John Kindt, a Mahomet resident who teaches business and legal policy at the University of Illinois likened video gambling addictions to a crack-cocaine addiction, citing studies which show similar brain responses to the two activities.
Kindt has testified in front of Congressional Committees on the effects of video game gambling on individuals and local communities. He noted an increase of addictions, bankruptcy and crime within a ten mile radius of the machines.
He is also concerned with the widespread advancement of these machines throughout the state. Video gaming terminals are now located in a floral shop in Oak Lawn and a scuba shop in Love Park.
“If this were good business, then I’d be all over it, and so would my colleagues,” Kent said. “But this will change the tenor of the community.”
In a letter written to the Village, the Mahomet Ministerial Alliance called on the Village to fulfill their duty to protect all members of the community. The pastors receive weekly phone calls from people who need help with utility bills or food. They do not believe the churches can provide more assistance for people who waste money on gambling.
Several opponents said they would not visit a restaurant with video gambling terminals.
Minick said while JT Walker’s and Main Street Wingery provide a quality product for Mahomet residents, they also bring in people from Monticello, Farmer City and Champaign.
“If we can’t survive, the community (as we know it) may not be able to survive as well,” he said.
Opponents agreed they want to keep the fine dining atmosphere in Mahomet, but they want to visit these establishments because they provide a quality product.
Board members agreed they would continue to collect input from a variety of community members, but also talk to other businesses and the Economic Development team to see if video gambling is an effective economic development tool. Brown said that while he would like to see closure to this issue in a couple months, the board is not in a hurry to pass anything at this time.
