As the City of North Chicago prepares to begin environmental remediation of the 41-acre Sheridan Crossing property at the northwest corner of Sheridan Road and Martin Luther King, Jr. Drive, video gaming will become a sidelight for businesses rather than a primary revenue source.
Although the city is not planning to revoke existing video gaming licenses, it will no longer issue them to businesses that make gaming their primary revenue source or in specific establishments, such as liquor stores or gas stations.
“We’re helping the community reestablish itself,” Mayor Leon Rockingham, Jr., said. “You’re not going to see a gaming parlor on every corner. They’ll have to rely on resources other than gaming.”
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The North Chicago City Council voted 6-0 with one member absent on August 4 at City Hall to significantly tighten the portions of its city code dealing with video gaming after gathering information during a one-year moratorium on awarding any licenses at all.
Eventually, revenue from video gaming may decline, but Rockingham said it will be replaced by putting more real estate on the property tax rolls, like Sheridan Crossing. The city’s 2024 comprehensive plan provides for mixed residential and commercial development there.
“Right now, it brings in zero dollars,” Rockingham said. “It will bring hundreds of thousands of dollars to the community when it’s developed. It will give us regional exposure, and people from other communities will see a difference.”
A groundbreaking ceremony is already planned to begin remediation of the Sheridan Crossing land to meet the standards of both the U.S. Environmental Protection Agency and the Illinois Environmental Protection Agency.
Primarily, the changes to the local gaming laws will lower the number of locations where people can gamble by “attrition” and reducing how close they can be to one another, according to a news release from the city.
While existing businesses that already have video gaming licenses will be able to keep them even if they do not meet the requirements of the legislation, they are personal to ownership, not the business.
Should a business with video gaming be sold, the license is not transferable to a new owner. If any portion of ownership changes in any way, the license “is lost,” according to the ordinance. This includes a new partner or a change in shareholders.
Gregory Jacckson, the chief of staff to Rockingham, said that to obtain a gaming license, the individual must also have a liquor license. The requirement was always part of the North Chicago ordinance. Both must be renewed annually by May 1.
Video gaming must be no more than 33% of the revenue of a business, making it an “accessory or incidental” party of the operation. At the time of renewal, financial reports for the previous four quarters must show the percentage of income from each source.
Establishments with video gaming cannot be within 150 feet of one another. Licenses will not be issued for gaming cafes. No longer allowed to have video gaming are general retail stores, liquor stores or gas stations.
Businesses that can offer video gaming include table service restaurants that serve complete meals, fraternal organizations, establishments for military veterans, and truck stops, as designated under state law.
Outdoor signage advertising video gaming inside is now more closely regulated. Feather signs, inflatable signs, balloons, tassels, ribbons, spinners or kites, among other movable signs, are not allowed, according to the new regulations. Illuminated signs within a window are prohibited.
Meeting the requirements is not a guarantee a video gaming license will be allowed. Rockingham said approval of the license still requires a vote of a majority of the city council.
“It the City Council feels unconformable, they can vote it down,” Rockingham said.