The Lindenhurst business community has doubled down on video gambling with the recent opening of Chances Bar and Video Gaming.
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The Route 45 bar, Lindenhurst’s second video gambling establishment, offers five slot machines — the maximum number allowed under state law.
“It’s certainly an additional revenue stream for us,” owner Ed Grossman said. “But we thought it might bring in some people during the daytime since we’re a bar and we don’t really have a kitchen — we’re not offering food.”
Grossman explained that the bar was his primary focus, and he saw the gambling machines as an opportunity to expand his business’ reach and revenue potential.
The extra money would also benefit the village of Lindenhurst.
Each machine’s net income — the difference between money put into a machine and winnings paid out — is taxed at 30 percent, with 25 percent going to the state and 5 percent staying with the local municipality.
Last year, Lindenhurst brought in $5,100 in tax revenue from Rocky’s Fabulous Vegas Strip, according to reports from the Illinois Gaming Board.
Revenue generated through video gambling goes into the village’s community capital fund to pay for infrastructure improvements, Lindenhurst village administrator Matt Formica said. The revenue, however, hasn’t been enough to fully cover individual projects.
There are now two video gaming licenses in play in Lindenhurst, and Formica said the village will review future applicants on a case-by-case basis.
“When the legislation was first initiated and became an option for establishments that have a liquor license, the village had several discussions at public meetings about the topic and solicited resident feedback,” Formica said. “And between the board and residents, (we had a) lot of mixed feelings about it.”
Countywide, the response to video gambling has also been mixed.
Last year, 27 of 55 Lake County municipal jurisdictions were home to at least one video gambling establishment.
Waukegan topped the county last year with 38 establishments offering video gambling. Those machines earned the city $497,000 in additional revenue during the 2014 calendar year.
The Waukegan City Council earmarks the money to help fund its police and fire pensions.
Tina Smigielski, the city’s director of finance, said the gambling revenue was split evenly between both public safety pension funds, easing the combined $10 million burden on taxpayers.
“It’s a significant amount of revenue,” Smigielski said. “It’s definitely helpful to try and get those funding levels improved.”
Highland Park, Lake Forest and Libertyville are among the communities that prohibit video gambling.
“There’s more to consider than just profits; particularly when people came here, most importantly, for a wholesome community,” Libertyville Trustee Donna Johnson said at a public hearing last November.
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