Press Release: September 21, 2018
(scroll down for Village Board videos and FAQ)
Village of Lombard responds to requests from business owners and residents to reconsider ban on video gaming
LOMBARD, Illinois — At the Village Board of Trustees meeting on August 16, several Lombard business owners voiced concerns that the Village’s video gaming ban negatively affects their businesses. Additionally, a petition was presented with 140 resident signatures in support of video gaming in Lombard. In response to the requests of business owners and residents, the Village Board announced on September 20 that video gaming will be discussed with resident committee members at upcoming meetings.
Video gaming will be discussed at the Finance and Administration Committee on October 22, the Public Safety and Transportation Committee on November 7, the Community Relations Committee on November 12 or December 10 (to be determined), and the Economic & Community Development Committee on November 12 or December 10 (to be determined). The discussions will be limited to each committee’s purview and will help to gauge community interest in the potential implementation of video gaming. Committee recommendations will be provided to the Village Board for consideration. No formal date or timeline for consideration of this matter has been established.
In addition to consideration from a business responsive perspective, video gaming will also be considered from a budgetary standpoint. The Village continues to face a long term budget deficit due to unfunded State mandates and exploring alternative revenue options is in line with Lombard’s Long Range Plan.
Board Meeting Videos
September 20, 2018, Village Board Comments: At Minute 21:30
August 16, 2018: Public Participation (At minute 7:20)
Video Gaming FAQs
- What is Lombard’s History when it comes to video gaming?
In 2010 and in 2014 this matter was brought to the Village Board for consideration. The Village took public comment and heard concerns from residents in the community. At such time, the majority of public comments reflected opposition to the concept and the Village Board voted not to proceed with video gaming. Currently, video gaming is prohibited
- Is video gaming allowed in Illinois?
Yes. The Video Gaming Act was enacted in July 2009, authorizing the placement of up to five Video Gaming Terminals (VGTs) in licensed Retail Establishments, Truck Stops, Veteran and Fraternal Establishments. The VGTs are all connected to and monitored by a Central Communications System.
- What is a Video Gaming Terminal?
A “Video Gaming Terminal” (“VGT”) is an electronic video gaming machine that plays or simulates the play of a video game authorized by the Board upon the insertion of cash. Authorized video games include, but are not limited to, video poker, line up, and blackjack. The VGT must utilize a video display and microprocessors in which the player may receive free games or credits that can be redeemed for cash. VGT does not include a Terminal that directly dispenses coins, cash, or tokens or is for amusement purposes only.
- Does Lombard have restrictions against the use of VGTs?
Yes. Lombard currently restricts the use of VGTs. In DuPage County, a municipality may pass an ordinance prohibiting video gaming within the corporate limits of the municipality. Additionally, the county board may also pass an ordinance prohibiting video gaming within the unincorporated areas of the county.
- Why is the Village once again discussing video gaming?
At a Village Board meeting on August 16, 2018, several local business and restaurant owners spoke during public comment, requesting that the Village reconsider its ban on video gaming. Their concern was that Lombard restaurants are losing customers and revenue to neighboring communities that do offer video gaming. View: villageoflombard.granicus.com/MediaPlayer.php?view_id=4&clip_id=621 Consequently, the Village Board of Trustees has requested that the topic of video gaming be discussed by a number of resident committees in the coming months.
- How is the Village going to be revisiting this topic?
Following the request of business owners to reconsider the ban, the Board of Trustees requested initial review by several resident committees. Since the topic was requested to be revisited by Lombard restaurant owners, the issue will be discussed first at a Committee level. Each committee, consisting of Lombard residents, will discuss the topic as it pertains to their purview.
The topic will be on the agendas for the:
- Finance and Administration Committee on October 22
- Public Safety and Transportation Committee on November 12 or December 10 (to be determined)
- Community Relations Committee on November 12
- Economic & Community Development Committee on November 12 or December 10 (to be determined)
- Is the Village going to allow video gaming?
At this time (September 2018), the Village is gathering information from interested business owners and the community, in order to gauge interest in the implementation of video gaming. The topic will move to committees for discussion as mentioned above and their recommendation will be provided to the Village Board for consideration. No formed action has been proposed as of September 2018.
- Is there a timeline established for any decisions regarding video gaming?
No formal date or timeline for consideration of this matter has been established. If the Village were to consider video gaming at some point in the future, the issue would need to be vetted through the Village’s committees/commissions, policies would be developed and approved, the Village Board may hold workshops and lastly, the item would appear on a Village Board agenda.
- How many DuPage County Municipalities have restrictions against video gaming?
At the present time, 17 DuPage County municipalities, include unincorporated DuPage County do not currently permit video gaming. Additionally, 14 municipalities do allow video gaming. If Lombard implemented video gaming, those numbers would switch from 16 municipalities that do NOT, and 15 municipalities that DO allow video gaming.
- How many communities have approved video gaming since it was approved in Illinois?
968 governing bodies in Illinois have approved video gaming to some extent.
- How would video gaming work?
Illinois’ Video Gaming Act authorized the placement of up to 5 video gaming terminals in licensed retail establishments, fraternal and veteran’s establishments with a liquor license, where permitted by local ordinance.
- How are funds collected by video gaming distrusted?
Video gambling revenues, after payouts to winners, are taxed at a flat 30% rate, with 25% going to the State and the other 5% going to the local municipality. The remaining 70% of revenue is divided equally between the establishments and terminal operators.
- If video gaming was allowed in Lombard, what would the estimated income be for the Village?
There are 14 municipalities in DuPage County that allow video gaming. The average income from video gaming for those municipalities was $97,958 in 2015, $130,962 in 2016, and $159,458 in 2017. The potential new revenue generated by the implementation of video gaming depends on how many businesses participate, and how many machines each business chooses to put in their establishment. Based on a recent survey issued by the Village that gauged video gaming interest among qualified Lombard businesses, it is estimated that the implementation of video gaming would generate approximately $143,000 in revenue to the Village.
- How would funds raised from Video Gaming be spent by the Village of Lombard?
The Village would utilize its portion of income (5%) to fund core services, including Police, Fire, Public Works, Community Development and long term financial planning.
- What are some of the State’s restrictions when it comes to video gaming?
Per State law, the following restrictions apply to operation of video gaming terminals:
Video gaming terminals may not be operated within 1,000 feet of a horse racing or riverboat gambling facility or within 100 feet of a school or place of worship.
- Number of Machines
No more than five machines are allowed on any premises
- Location of Machines
Video gaming machines must be located in an area that is restricted to persons aged 21 or older, and in view of at least one employee.
- Age Restriction
No one age 20 years old or younger is permitted to play at a video gaming terminal.
- Hours of Operation
Video gaming terminals can only be operated during the normal hours of operation of the establishment where they are located.
- Would the Village be able to add additional restrictions?
Yes. The Village Board of Trustees may choose to adopt its own local restrictions regarding video gaming.
- Has there been feedback from other municipalities who have allowed Video Gaming?
Yes. Since the adoption of video gaming, the Police Departments of nearby towns reported no major issues identified as a result of video gaming. Also, with regard to licensing of terminal vendors, this responsibility would not fall under the Village; the Illinois Video Gaming Board is responsible for performing all background checks and licensing video gaming terminal towers.
- As a business owner or resident, when would I be able to provide feedback regarding the topic of video gaming? Public comment would be available workshops (although no official dates have been determined), or at upcoming committee meetings (listed above in #15) or at Village Board meetings. View all upcoming meeting dates at www.villageoflombard.org/villagecalendar.
- Where can I find updates on this topic?
The Village will post all updates and information regarding video gaming on this page, www.villageoflombard.org/videogaming.