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News
Oswego Village Board cool to video gambling : News : Oswego Ledger-Sentinel : Hometown Newspaper for Oswego and Montgomery, IllinoisOswego Village Board cool to video gambling
| To allow machines in local businesses, board would have to lift 1935 ban
| by John Etheredge
| 6/14/2012
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Oswego Village Board members want more information before they decide if they will allow video gambling machines in local businesses.
Board members instructed village staff this past week to contact other area communities to find out whether they will permit the machines.
In addition, board members requested staff to obtain more information concerning the potential financial benefit to the village of allowing the machines.
Up to five video gambling machines would be allowed in village businesses that are licensed to sell alcoholic beverages under a gambling expansion law passed by the Illinois General Assembly in 2009. State lawmakers approved the bill to provide funding for a statewide capital improvement program.
The village would receive five percent of the gross revenues generated by each machine, with the balance going to the state and the businesses that would offer the machines.
But before Owego businesses could install the machines, the board would first have to vote to rescind a 1935 ordinance that banned gambling in the village, Karl Ottosen, an attorney for the village told the board.
Jeanne Hester, village clerk, said the 1935 gambling ban was also included in a 1952 village codebook.
Board members noted that several of the businesses licensed to sell alcohol in the village have previously expressed interest in placing the machines in their establishments. However, board members also expressed reluctance to lift the village's 78 year-old gambling ban.
"It takes disposable income away from the local businesses that could be spent in the Marmalade Tree and other places because some of that is going to be used towards gambling instead," Jeff Lawson, a board member said.
"If disposable income is being used for gambling, that's just less dollars available in the community," Lawson added.
Since state lawmakers approved the video gambling machines to finance the state's capital program, Lawson asked if future village requests for funding for local state projects would be jeopardized if the board keeps the gambling ban in place.
Ottosen said funding requests to the state would "probably not be specifically tied" to whether or not the village has allowed video gaming.
"But, I would not put it past members of the General Assembly and others at the state level looking at a grant request or funds for local projects to look a little skeptically if you have not agreed to participate," Ottosen said.
"I wouldn't put it past somebody-I didn't say they would specifically do it," he added.
Lawson noted that Naperville and numerous other municipalities across the state have already decided they will not allow the machines.
"We are in good company if we opt not to approve this," he said.
When questioned further, Ottosen confirmed that if the village permitted the machines, the local businesses would have to install them in designated areas and limit there use to individuals 21 and older in accordance with state-set specifications.
Board member Judy Sollinger asked if village officials have discussed the issue with local businesses.
Village President Brian LeClercq said he has and "a couple (of businesses) are very concerned that we might not allow video gambling."
Board member Terry Michels recalled the issue of video gambling was the topic of a well-attended board committee meeting a few years ago.
Some business owners indicated they would have to close if they did not have the revenue from their amusement-only gaming devices the currently have, according to Michels. (Under state law, businesses will have to remove the amusement only gaming devices in communities where video gaming is permitted)
Lawson said, "If your business model is a bar and grill and the only thing keeping you above water is amusement machines, then I have a question as to the viability of your business."
Board member Gail Johnson said she does not believe the village can "legislate morality" and asked to see more information concerning other communities that have already voted against allowing video gaming and the financial impact.
Board member Tony Giles said he would like to get more feedback from local businesses.
"Right now I'm not in favor of it," he added.
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