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Flossmoor Village Board members Tuesday will consider whether to allow video gambling at local establishments with liquor licenses.

Video gaming advertised in 
a Homewood store window. 

(Photo by Tom Houlihan/
HF Chronicle)

The village currently prohibits video gambling, which has been legal in Illinois since 2009. At the Aug. 3 village board meeting, Mayor Paul Braun said a local business is asking Flossmoor to allow video gambling. The village has the power to amend its local ordinances to allow video gambling.

Tuesday’s board meeting begins at 7:30 p.m. at the village hall, 2800 Flossmoor Road.

Under state law, video gambling is permitted at three types of establishments – “on premise” liquor license holders; fraternal organizations, regardless of whether they hold a liquor license; and truck stops, regardless of whether the business holds a liquor license.

Flossmoor currently has three establishments with liquor licenses, all of which are restaurants with bar areas.

Besides Flossmoor, Hazel Crest is the only surrounding municipality that prohibits video gambling.

The Illinois Gaming Board regulates video gambling on the local level. Terminals are limited to five per establishment and wagers are limited to 25 cents. Terminal payouts are limited to $500.

Village Manager Bridget Wachtel prepared an analysis of video gambling in nearby communities.

 Homewood has six establishments with video gambling, each with five terminals. Between June 2014 and June 2015, according to the gaming board, a total of $12,543,251.83 was wagered at the Homewood establishments, with winnings of $11,541,262.13. Two of those establishments had total wagers in excess of $3.5 million. Homewood’s share of revenues from video gambling was $56,095.89 and the state received $250,500.12.

Glenwood has three establishments with video gambling, including one listed by the gaming board as “Village of Glenwood.” During the same period, $6,161,580 was wagered in Glenwood, with winnings of $5,609,133.74. The village received $27,622.56 and the state’s share was $138,113.33.

Chicago Heights has 18 establishments with video gambling, and 78 terminals. Wagers during the designated period exceeded $26 million. Matteson has 11 establishments with video gambling and Country Club Hills has one.

In Flossmoor, establishments with liquor licenses have distance requirements for schools and churches and those would also apply for video gambling.

Under Illinois law, a 30 percent state tax is imposed upon net terminal income, Wachtel said in her memo to the village board. The local establishment receives 50 percent of the after tax terminal income. Five-sixths of the tax goes to the state’s Capital Projects Fund and one-sixth goes to the Local Government Video Gaming Distributive Fund. The tax is paid on a monthly basis and the Distributive Fund pays out on a monthly basis to those municipalities that do not prohibit video gambling. The local payout is proportionate to revenue derived from the video gambling in the municipality. 

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