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Chicago Tribune Reports on Illinois Lottery Corruption

The Chicago Tribune reported this last Friday on the dubious goings on at the Illinois Lottery:

A Tribune investigation found the Illinois Lottery collected hundreds of millions of dollars from selling tickets to instant games in which it did not hand out all of the life-changing grand prizes — sometimes awarding no grand prizes before ending a game.

Are you shocked, shocked that corruption is going on at the Illinois Lottery? Well, you shouldn’t be. Corruption, inefficiency, and lack of oversight affect virtually every government agency in Illinois.

Poor management of tax dollars have left Illinoisans with billions in unpaid bills and well over a hundred billion dollars in unfunded liabilities despite record tax receipts to the state of Illinois. Some on the political right call for more privatization of public services. Unfortunately, that won’t improve services if  the oversight of those programs by the state is as lousy as its oversight of its own bureaucracies.

Case in point — the Illinois Lottery:

Illinois became the first state in the nation to turn over day-to-day management of its lottery to a private firm. The firm, Northstar Lottery Group, took over the Illinois Lottery in July 2011. Since then, Northstar has been criticized for failing to deliver the profits to the state it projected when it won the Illinois bid. The state is now looking for a replacement.

The focus of the Tribune’s investigative report was “how private management affected players,” about  which, the Trib notes, “there has been little talk.”

No big surprise there. That would have required oversight by our state’s elected officials. If our governor and General Assembly members would have done their jobs, they would have discovered things like the Chicago Tribune found:

It was called The Good Life and offered the biggest grand prize of any instant game the Illinois Lottery had ever produced.

Two lucky winners could scratch their way to $46 million each, paid in periodic installments. At $30, tickets weren’t cheap, but millions were sold. Then the game ended before the lottery sold most of the tickets that were printed, with neither top prize awarded.

The same thing happened with another instant game, called Birthday Surprise. Two large grand prizes offered. Neither awarded.

And with another version of The Good Life. Three large grand prizes offered. None awarded.

Seems like kind of a big thing to have missed by those who have the responsibility to run our state government honestly and effectively. The Illinois Family Institute finds itself on the opposite side of the Tribune editorial board on many issues, but in this case, the Trib deserves kudos for this report.

Even if the state had done it’s oversight job well, however, the Illinois Lottery is still a lose-lose for families and taxpayers. The Illinois Family Institute has been clear in its opposition to legalized gambling of all kinds, and you can learn more about the issue in our archives by clicking here.

Legalized gambling is a moral issue that, as so many moral issues do, involves tax dollars. A lot of tax dollars. Astonishing debt, abortion-funding, and punishing taxation-levels are not only fiscally foolish but also immoral. Decades of economic and social science research have demonstrated the ill-effects of private and government-run legalized gambling.

Economics professors Earl L. Grinols at Baylor University and David B. Mustard of the University of Georgia, have long studied the issue. They agree that to adequately count the costs of legalized gambling, several categories of various costs must be factored in. Their list includes: crime, business and employment costs, bankruptcies, suicides, illnesses, social service costs, government regulatory costs, family costs, and abused dollars (a term representing monies acquired under false pretenses to fund a gambling problem).

The math doesn’t quite work out the way proponents of gambling would have you believe. Society and the economy pay a heavy price for such “economic activity.”

Take ACTION:  Click HERE to send your state lawmakers an email to express your outrage at the way the Illinois Lottery is allowed to run. Ask your state representative and state senator about their oversight of this agency and the lack of responsible management in general. You may even want to encourage them to abandon problematic revenue schemes like the lottery, which take advantage of the poor and under-educated.

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Read more:

North Carolina Policy Watch details how the most impoverished counties in North Carolina spend the most money on the state lottery: Read more HERE.

18 Signs That The Lottery Is Preying On America’s Poor  (Business Insider)

Lotteries: The Issue (Focus on the Family)

Lotteries — Robin Hood in Reverse (Boston Globe)

Illinois Lottery Has $200 Million in Bookkeeping Errors (Crain’s Chicago Business)

In addition to these IFI archive of articles, more articles on the topic can be found here.


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Seven Reasons Not to Play the Lottery

Written by John Piper

Americans now spend more than $70 billion dollars annually on lotteries. That’s more than the combined spending on books, video games, and movie and sporting-event tickets. Lotteries are legal in 43 states.

“That’s more than $230 for every man, woman, and child in those states — or $300 for each adult,” reports The Atlantic.

I agree with the report that this is a great shame on our nation. From time to time, the Powerball or Mega Millions lotteries rise to unusually high numbers and get fresh attention in the news.

Here are seven reasons, among others, I have often rehearsed to make the case that you should not gamble with your money in this way.

1. It is spiritually suicidal.

“Those who desire to be rich fall into temptation, into a snare, into many senseless and harmful desires that plunge people into ruin and destruction. . . . and pierced themselves with many pangs” (1 Timothy 6:9–10).

2. It is a kind of embezzlement.

Managers don’t gamble with their Master’s money. All you have belongs to God. All of it. Faithful trustees may not gamble with a trust fund. They have no right. The parable of the talents says Jesus will take account of how we handled his money. They went and worked (Matthew 25:16–17). That is how we seek to provide for ourselves (1 Corinthians 4:12; 1 Thessalonians 4:11;Ephesians 4:28).

3. It’s a fool’s errand.

The odds of winning are nearly 176 million-to-one. You take real money and buy with it a chance. That chance is so infinitesimally small that the dollar is virtually lost. 175,999,999 times. The smaller amounts paid out more often are like a fog to keep you from seeing what is happening.

4. The system is built on the necessity of most people losing.

According to the International Business Times, lotteries are “just another form of gambling (without any of the glamour and glitz of Las Vegas, of course). The ‘house’ controls the action, the players will all eventually lose.”

5. It preys on the poor.

The lottery supports and encourages “yet another corrosive addiction that preys upon the greed and hopeless dreams of those trapped in poverty. . . . The Consumerist suggested that poor people in the U.S. — those earning $13,000 or less — spend an astounding 9 percent of their income on lottery tickets. . . making this ‘harmless’ game a ‘deeply regressive tax’” (ibid).

6. There is a better alternative.

A survey by Opinion Research Corporation for the Consumer Federation of America and the Financial Planning Association revealed that one-fifth (21 percent) of people surveyed thought the lottery was a practical way to accumulate wealth. We are teaching people to be fools.

If the $500 a year that on average all American households throw away on the lottery were invested in an index fund each year for 20 years, each family would have $24,000. Not maybe. Really. And the taxes on these earnings would not only support government services, but would be built on sound and sustainable habits of economic life.

7. For the sake of quick money, government is undermining the virtue without which it cannot survive.

A government that raises money by encouraging and exploiting the weaknesses of its citizens escapes that democratic mechanism of accountability. As important, state-sponsored gambling undercuts the civic virtue upon which democratic governance depends. (First Things, Sept., 1991, 12)

So, if you win, don’t give from your lottery winnings to our ministry. Christ does not build his church on the backs of the poor. Pray that Christ’s people will be so satisfied in him that they will be freed from the greed that makes us crave to get rich.


John Piper was assisted by Desiring God staff in gathering the statistics for this article, which was originally published at DesiringGod.org.

John Piper (@JohnPiper) is founder and teacher of desiringGod.org and chancellor of Bethlehem College & Seminary. For 33 years, he served as pastor of Bethlehem Baptist Church, Minneapolis, Minnesota. He is author of more than 50 books, including A Peculiar Glory.




Fantasy Sports Gambling Will Become Legal if Illinois Lawmakers Have Their Way

Attorneys General in 11 states, including Illinois, have said that Daily Fantasy Sports is illegal gambling.  With HB 4323, it will become legal.

HB 4323 would be a massive expansion of gambling into every home, dorm room and office. Under HB 4323, fantasy sports gambling would be easy from a smart phone, computer or any electronic device from home, an office, or dorm room 24 hours a day, 7 days a week.

According to a MarketWatch.com article, underage gambling is of great concern, as sports gambling apps target users as young as 13. Then consider that research shows that the earlier people begin to gamble, the more likely they are to become addicted. This may be a corrupting combination for a good many young people. And while HB 4323 prohibits Fantasy Sports companies from advertising on school, college, or university campuses, children and college students can easily obtain access to the ads from their smart phones, computers, tablets or television sets.

Illinois State Representative Ron Sandack recently wrote in an op-ed in opposition to HB 4323, “Contrary to their propaganda, the fantasy sports industry does not have a record of trustworthiness and does not have the best interests of Illinois families at heart.”

The fact that the gambling industry is actively opposing this legislation is a clear indication that they see the “fantasy sports” industry as competition and a threat to existing gambling outlets.

Lawmakers need to hear from you!

Take ACTION: Click HERE to send your state representative an email or fax urging him/her to vote NO on HB 4323 and to stop expanding gambling which only increases divorce, suicide, bankruptcy, poverty, crime, embezzlement, and exploitation of the poor.

You can also call via the Capitol switchboard, by calling (217) 782-2000. If you don’t know who your state representative is, CLICK HERE. He/she will be the last one listed under ‘Your State Officials.’ Click on their name for their contact information.

“[Gambling] has more of a history of
corruption than any other industry.”

~Former Illinois U.S. Senator Paul Simon




Gambling and Government

Written by Kerby Anderson

Americans do seem to like gambling. Look at all the people who raced to the local convenience stores to buy a ticket for the recent Powerball. State lotteries still seem to be going strong. Many analysts believe that as much as $120 million might be bet on the Super Bowl.

So who is the biggest winner when it comes to gambling? The easy answer is the government. Consider the recent Powerball jackpot of $1.5 billion. There were three winners each getting $520 million. But the various governments get much of that prize before a check is ever issued to the winners.

The federal government skims off 25 percent off of a lump-sum cash award. And mega-winners are taxed at the highest federal income tax bracket. Then states collect personal income taxes, while local municipal taxes add a few more percentage points to the tax burden. The biggest winner occurred in 2013. She supposedly won $590 million but chose to take it as a lump-sum cash award of $370 million. Once the government was through, she actually got $278 million (less than half of the original winnings).

Not only is government the biggest winner. It is also the biggest hypocrite. State lotteries entice people to “take a chance” because “everyone’s is a winner” and after all, “somebody’s got to win.” This is false advertising, but they are able to get away with it because the Federal Trade Commission doesn’t hold them to the same standards of other products.

And many people are rightly complaining about the hypocrisy of state officials declaring fantasy sports as illegal gambling. On the one hand, these states are promoting gambling through lotteries and sometimes through horse racing and casinos. On the other hand they declare any gambling they don’t control as deceptive and illegal.

Moreover, gambling often is a regressive tax on the poor who hope to get rich quick. But governments won’t stop promoting gambling. For them it’s a great bet.


This article was originally posted at AFA’s The Stand.




Why Everybody Loses With The Powerball

Written by Dr. Jordan J. Ballor

No one won this week’s Powerball jackpot, which means the jackpot will roll over [to an estimated $1.3 billion]— the largest lottery prize in U.S. history.

According to the Associated Press, Powerball is played in 44 states, the District of Columbia, the U.S. Virgin Islands and Puerto Rico. But who is funding the game?

Public polling has confirmed the fears of many who oppose such government-promoted gambling: the poorest among us are contributing much more to lottery revenues than those with higher incomes. One poll found that people who played the lottery with an income of less than $20,000 annually spent an average of $46 per month on lottery tickets. That comes out to more than $550 per year and it is nearly double the amount spent in any other income bracket.

The significance of this is magnified when we look deeper into the figures. Those with annual incomes ranging from $30,000 to $50,000 had the second-highest average — $24 per month, or $288 per year. A person making $20,000 spends three times as much on lottery tickets on average than does someone making $30,000. And keep in mind that these numbers represent average spending. For every one or two people who spend just a few bucks a year on lotteries, others spend thousands.

All of this is taking place in a system of legalized gambling that is monopolized and promoted by those in political power. Where state governments are supposed to be looking after the welfare of their citizenry, the commonwealth of all the people, the establishment of a lottery has in fact betrayed the citizenry.

What begins as a well-intentioned plan to provide for the needs of the people – education funding for example – very often becomes just another source of revenue for a voracious state treasury. Lotto revenue is often diverted for new purposes through legislative and bureaucratic chicanery.

The highly promotional nature of state lotteries becomes clear as they bombard us with advertising in every available medium. When jackpots like Powerball get particularly large the media blitz becomes a frenzy, as the government-run lotteries attempt to dazzle us into the twenty-first century form of “gold fever.” In a previous multi-state Mega Millions lottery, Michigan officials tempted players with the promise of “$24,300 per day!” in a press release that described winning the jackpot as “a pretty nice payday.” In this way, state lottery boards and commissions “come to you in sheep’s clothing, but inwardly they are ferocious wolves” (Matthew 7:15 NIV).

The effectiveness of such media campaigns is apparent from the polls and surveys on lotto spending. Among the lowest-income bracket, 62 percent of those who purchased lottery tickets in the past year denied having participated in legal gambling. In other words, the government has managed to convince many of us that lotteries are not indeed gambling but rather a form of civic duty, a valid and even commendable form of public service. This is evident in such rhetorically benign mottos as, “Benefiting All Rhode Islanders Since 1974,” “It’s Only a Game” (Montana), and “Odds Are, You’ll Have Fun” (Ohio).

Certainly when Jesus said, “The poor you will always have with you,” (Mark 14:7 NIV) he meant it as a description of the inevitable result of human sin and social evil. Such evil is exemplified well in the case of state lotteries, which have effectively codified Jesus’ statement into an institutional goal.


Jordan J. Ballor (Dr. theol., University of Zurich; Ph.D., Calvin Theological Seminary) is a research fellow at the Acton Institute for the Study of Religion & Liberty and author of Get Your Hands Dirty: Essays on Christian Social Thought (and Action).


This article was originally posted at the ERLC.com website.




State Rep. Zalewski Files Bill to Legalize Internet Sports Gambling

House Bill 4323, introduced by State Representative Michael Zalewski (D-Riverside), creates the Fantasy Contests Act.  This proposal would legalize Internet Sports gambling for anyone 18 and older.  The language is very vague about the number of entries that could be submitted by a single player or how individuals could restrict themselves from entering a “fantasy contest”.  Violations of the Act would result in a civil penalty of no more than $1,000 for each violation.  (Read the bill HERE.)

State Rep. Zalewski’s  proposal comes a week after DraftKings and FanDuel hired lobbyists to represent their interests in Springfield. And, it comes just days after the Illinois Gaming Board said it was reviewing whether the games are allowed.

In Nevada, regulators announced earlier this month that the two big fantasy sports operations were gambling operations that need a license to operate there.

Zalewski said the proposal is likely to be discussed in next spring’s legislative session.  Read more

The Chicago Sun-Times reported:

Both of the two major companies involved have responded to Zalewski’s bill, but in a surprisingly upbeat way. In a statement, FanDuel said they welcome the opportunity to work with Zalewski and DraftKings said the legislation is “a reasonable and measured step toward oversight of fantasy sports.”

The Wall Street Journal reported:

The move comes as daily-fantasy companies face growing questions over the legality of their business model. Earlier this month, gaming regulators in Nevada ordered FanDuel and DraftKings Inc., the two largest operators in the industry by far, to cease operations in the state. The New York Attorney General’s office has asked both companies for a raft  of internal data and their policies to prevent fraud.

Five states-Arizona, Iowa, Louisiana, Montana and Washington-have made the practice illegal.   (Read more HERE.)

The pressure on daily fantasy sports continues to grow amid reports that a prosecutor in the U. S. Attorney’s office in Tampa, Florida has issued a subpoena to the industry’s main trade association, Illinois-based Fantasy Sports Trade Association’s board meeting minutes.   (Read more Here.)

TAKE ACTION: Contact your state representative to ask him/her to vote against any proposals to expand gambling to the Internet.  Call the Capitol switchboard at (217) 782-2000 and ask to speak to your state representative’s office.




Racetracks in Illinois to Shut Down

The owners of Arlington Park closed the racetrack 18 years ago, saying that competition from casinos was killing horse racing. Two years later, under Governor George Ryan, the Horse Racing Act was amended to subsidize horse racing by reducing or eliminating taxes.  Richard Duchossois led the drive by track owners for at least $67 million in annual tax breaks and subsidies as compensation for business siphoned off by Illinois riverboats, according to the Chicago Tribune.

The racetracks have been lobbying for years for slot machines.  Now, the tracks want table games and slots to transform their facilities into full-blown casinos.  Legislators are led to believe this will “save horse racing” and agriculture jobs.  However, this is not true.  The number of “live” racing days has been reduced at all tracks and eliminated altogether at two.

Illinois Racing Board pulls plug on Balmoral and Maywood Racetracks

Balmoral had sought to race on Friday and Saturday nights from January through November and Maywood on Friday and Saturday nights from November through December.  However, Hawthorne Race Course, which had not conducted harness racing since 2008,  will get those race dates.

After unsuccessfully fighting to eliminate Hawthorne’s spring thoroughbred meets for the last four years, Arlington International Racecourse formed an alliance with its former adversary and the tracks made a joint presentation to the Illinois Racing Board.

Hawthorne agreed to give Arlington a portion of the host track money it receives from out-of-state simulcasts, and Arlington supported Hawthorne’s requests for the two harness meetings and its usual spring and fall thoroughbred meetings.  Read more HERE.

Transforming racetracks into land-based casinos will not “save horse racing” but it will make wealthy track owners richer and greatly expand the number of casinos in Illinois.

Take ACTION:  

  1. Click HERE to contact your state lawmakers to tell them NO MORE GAMBLING.
  2. Call the Governor and tell him NO MORE GAMBLING!  (217) 782-0244 or (312) 814-2121
  3. Share this Alert on social media
  4. Forward to 10 others and ask them to PRAY.



Testimonies Expose Harmful Effects of Legalized Gambling

An anti-gambling group is getting set for a national day of action on exposing the harmful effects of gambling.

Stop Predatory Gambling has frequently pointed out in previous interviews on OneNewsNow how legalized gambling is a failed policy. In order to gain revenue through a source proven to be unreliable, it has been victimizing its own citizens and making the poor even poorer.

Executive director Les Bernal recently testified to that effect before a congressional committee. Melynda Litchfield is a prime example of the harmful effects of gambling. In 2012, Litchfield realized the damage done by the government’s partnership with gambling.

“For nearly 30 years I saved lives for a living as a registered nurse in the hospital, but the one life I could not save was my own from developing a devastating and crippling addiction to slot machines,” she says. “The quality of my life and that of my family was permanently and profoundly altered.”

That’s just a portion of her testimony posted as a video on YouTube. Now, Litchfield serves as National Victims Advocate for Stop Predatory Gambling. She is helping lead an effort to convince the public and lawmakers throughout the U.S. of the failure of gambling policies. She is heading up the National Day of Action on September 26-27, when individuals nationwide will speak out.

Originally published at OneNewsNow.com.




Chronic Gambling and Depression Often Occur Together, Researchers Find

Written by Catharine Paddock PhD

The researchers found that nearly three quarters of young men who reported significant gambling problems were also suffering from depression.

Writing in the Journal of Gambling Studies, Frédéric Dussault, of the University of Quebec at Montreal in Canada, and colleagues explain how they also found that boys with high impulsivity tend to become gamblers when they grow up.

Their study is the first to explore the extent to which gambling and depression occur together in young men in their teens through to their 20s.

They used data from a study that started in 1984 and is still ongoing. The study recruited over 1,100 boys of kindergarten age living in the poorer areas of Montreal.

The ongoing study has collected information about participants’ family situation, measures of their impulsivity and quality of their relationships.

The authors of the new paper analyzed data from 878 participants who, when they were 17, 23 and 28 years old, had answered questions about gambling or depression problems.

73% of participants with gambling problems had depression

The researchers found that 3% of the participants showed signs of chronic gambling, with the problem increasing as they progressed from age 17 to 28. This statistic is line with the 1-3% of adults that have chronic gambling problems.

In addition, the analysis showed that 73% of the participants who reported significant gambling problems were also suffering from depression that appears to have developed with the chronic gambling – also growing more severe over time.

The researchers found that the problem gambling behavior did not necessarily lessen as the young men reached their late 20s. They suggest this could be because gambling becomes legal once a young person reaches adulthood – unlike delinquent behavior, such as violence or theft. Dussault notes:

“Gambling problems may be more a personal problem similar to an addiction: once acquired, they are difficult to get rid of.”

He suggests where they occur together, problem gambling should be treated with the depression.

In a further analysis, the researchers also found that the more impulsive boys were more likely to develop problem gambling and depression later, and quality of relationship with parents was closely linked to developing depression.

In addition, they found that friendship quality and “socio-family risk” (which includes factors like poverty, divorce, teen parenthood) were factors in predicting both problem gambling and depression.

Dussault also advises programs aimed at tackling these problems early on should deal with issues specific for the individual; there is a difference between being very impulsive and repeatedly making the wrong friends.

Meanwhile, researchers at the University of Missouri say more than 1.6 million US college-age adults meet the definition of problem gambling.

Medical News Today recently learned about a study they conducted that found receiving personalized computer feedback can help college-aged adults diagnosed as problem gamblers significantly change their behavior.

Originally published at MedicalNewsToday.com.




Counterpoint: A Chicago Casino Would Take Money Fom Illinois Residents

Remember when Illinois politicians told us revenue from riverboat casinos would come from out-of-state residents? Then surrounding states built casinos to compete with Illinois. Many of the same companies owned casinos in both states and profited from the expansion.

Now politicians, who are looking for more revenue to pay mounting bills, pension obligations and budget shortfalls, want a massive expansion of casino gambling.  This time, however, Illinois residents will be targeted to gamble and lose their money.

While some want to capture the money Illinois residents are losing in other states, a casino in Chicago will create more gamblers with greater social costs, and more money will leave the state with casino companies or casino managers.

With 2.7 million people, Chicago is one the largest population centers in the country. Studies have shown the rate of pathological gambling is significantly higher among minorities and low-income individuals. The National Gambling Impact Study Commission found the rate of pathological gambling doubles within 50 miles of a casino. Making gambling more accessible in the metropolitan area will increase the amount of gambling and harm.

Addiction, bankruptcy, embezzlement, child abuse/neglect, and suicide are some of the social costs that will increase. Casinos do not just shift crime from neighboring regions, but create crime, according to a study by Professors Earl Grinols and David Mustard.

For every $1 of revenue gambling interests indicate is being contributed in taxes, it costs taxpayers $3 in social welfare, criminal justice, and regulatory costs, according to the U.S. International Gambling Report. The costs will be borne by all residents, whether you gamble or not.

A Chicago casino would be a perpetual license that could never be revoked. Other details would be worked out behind closed doors and hidden from public view until a “deal” is finalized and ready for a vote. Remember all the problems with the Video Gambling Act, which was introduced and passed in a little over 24 hours? Now many municipalities are trying to limit the number of machines and prevent video gambling parlors.

Casinos have closed in Atlantic City and Mississippi, and revenue at Illinois casinos has declined for several years. Gambling is an unstable source of revenue. Adding more casinos in Illinois will not solve the state’s financial problems, and a massive casino gambling expansion in Chicago will create untold harm for years to come.

Originally posted at Chicago.SunTimes.com.



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Sweeping Up ‘Broom Closet’ Gambling

Video gambling out of control, says one lawmaker

Written by Patrick Yeagle

You can find them in gas stations, golf courses, restaurants, liquor stores and even a TV repair shop. More than 19,000 video gambling machines had spread across the state by the end of 2014, turning thousands of businesses and other establishments into what one lawmaker calls “mini casinos.” Now, he’s trying to curb the trend.

State Senator Darin LaHood, R-Dunlap, wants to place new limits on which establishments can have video gambling machines in Illinois. Although existing gambling parlors would initially be grandfathered in, his bill would likely eliminate many of them when it comes time to renew their licenses.

Illinois legalized video gambling machines in 2009, and the first regulated machines began operating in 2012. Prior to that, such machines were only legal if there was no payout, meaning many establishments would simply pay out under the table.

Although he’s not opposed to video gambling in general, LaHood says the proliferation of machines goes beyond what the legislature intended.

“I wasn’t here in 2009 when the original law was passed, but my understanding was that it was to specifically help bars and restaurants,” LaHood said. “Fast forward to floral shops, liquor stores, laundromats; I don’t think anybody anticipated that you’d have the proliferation of video gambling machines in all these places outside bars and restaurants.”

On average during 2014, the Illinois Gaming Board approved 134 new establishments for video gambling machines each month. At the end of last year, 4,675 establishments across the state had a total of 19,182 video gambling machines. Statewide, gamblers put more than $2.4 billion into the machines in 2014 and lost almost $659.5 million. For every dollar put into video gambling machines in Illinois during 2014, gamblers received about 73 cents back on average.

Springfield in particular is a hotspot for video gambling. The city’s downtown alone hosts 21 establishments with video gambling machines. Citywide, 150 establishments host the machines, at which gamblers spent more than $8 million in January 2015 alone. During the previous year, gamblers put more than $82 million into the machines in Springfield, netting the city almost $1.2 million in revenue. The amount of money lost by gamblers in Springfield during 2014 totaled more than $21.7 million. In January 2015 alone, Springfield gamblers lost more than $2.1 million to the machines.

In May 2014, the Springfield City Council approved an ordinance requiring that an establishment seeking video gambling machines show that at least 60 percent of their revenue comes from the sale of food or beverages. Existing video gaming establishments were grandfathered in, but new or renewing applicants will have to meet the threshold.

LaHood’s bill would require an establishment seeking a license for video gambling machines to show that 80 percent of revenues for the previous two years came from the sale of food or beverages. Applicants seeking a license renewal would have to show 50 percent of revenue came from food or drinks in the previous year. 

Licensees would have to hide video gambling machines from the view of children and post signs indicating that no one under age 21 – the existing age limit – may use the machines. They would only be allowed to operate during an establishment’s normal business hours. 

Henry Baird, owner of Pennies Place in Jerome, says he doesn’t see the problem with video gambling machines becoming common. His one-room parlor, nestled between his package shipping business and his TV repair shop, likely wouldn’t meet the revenue threshold under LaHood’s bill because the food and drinks he offers customers are free.

Baird sees video gambling as mere entertainment, and he says most of his customers come with a certain amount of money they expect to lose. 

“Everyone has a vice,” he said. “Some people choose to spend their money drinking in a bar.”

Currently, problem gamblers can have themselves placed on a state list barring them from casinos, but the list doesn’t apply to video gambling machines. The same goes for the state list excluding people who ran illegal gambling operations, cheated at casinos or committed other acts barring them from casinos. Under LaHood’s bill, anyone on either list wouldn’t be allowed at a video gambling location.

Baird says he actually supports that provision.

“If someone is on one of those lists,” he said, “they probably shouldn’t be gambling.” 


This article was originally posted at the IllinoisTimes.com website.

 




Gambling Expansion: Not the Solution

In 1974, the Illinois Lottery was established with the goal of funding K-12 public education.  In 1990, the Riverboat Gambling Act legalized ten casino licenses throughout the state.

In 2009, another massive gambling expansion was passed, allowing video slot machines in neighborhood bars, restaurants, fraternal organizations, veterans groups and truck stops. This resulted in 18,000 slot machines at more than 4,700 locations, which is the equivalent of adding 15 new casinos. Twice as many locations for legalized gambling as Nevada.

Illinois citizens have lost more than $725 million at these slots since 2012!

If gambling expansion were a magical solution, the explosion of gambling in Illinois should have solved most of our state’s financial troubles by now. Yet, the state of Illinois has a $52 million budget deficit, and an “unfunded pension liability” of at least $100 billion.  In addition to that, Illinois has 300,000 fewer people working today compared to January 2008 and food stamp recipients have increased to over a million.

Gambling is not the financial answer to the unrestrained spending of state lawmakers, but rather has served to greatly aggravate Illinois’ fiscal woes by injecting a predatory vice into communities across the state.

We know the social harms that accompany gambling are enormous: debt, depression, foreclosure, bankruptcy, divorce and even suicide.  Researchers believe that crimes committed by compulsive gamblers are often underreported. Some of these crimes include writing bad checks, check forgery, fraud, and embezzlement.

The National Institute of Justice reported that 30 percent of pathological gamblers who were arrested in Las Vegas and Des Moines admitted that they had committed a robbery, and about 13 percent of them admitted they had assaulted someone to get money.

Economics professor, Earl Grinols, says in his book, Gambling in America: Costs and Benefits, the annual cost of one addicted gambler to society is $10,330. Grinols argues that the costs of casino-derived revenues exceed the benefits by a factor of more than 3 to 1.

It is painfully clear, gambling is not and has not been the answer to the state’s fiscal problems.  While it may be a source of amusement for some, for far too many families it has been a source of pain and suffering.

TAKE ACTION: Click HERE to contact your state representative and state senator and ask them to vote against any new proposals to expand gambling in Illinois.


 

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Illinois’ Video Gambling Expansion Stirs Concerns

In just two years, Illinois’ video gambling has spread exponentially – now in places such as laundromats, florists and an apartment complex. Being dubbed “mini-casinos,” multi-million dollar casino complexes are experiencing a slide in their profitability.

If an Illinois venue has a liquor license, the owner can apply for three to five video gambling machines at that location. Currently, there are 18,669 terminals scattered across 4,570 businesses, according to the Illinois Gaming Board, with several hundred being added every month.

Among them are a scuba shop and laundromat in Winnebago County’s Loves Park, a florist in Oak Lawn outside Chicago and a Champaign apartment complex, among others, the Associated Press reports.

Even the most ardent supporter of legalized gambling in the Illinois House – Rep. Lou Lang (D-Chicago) is noticing video gambling’s effects.

“It was never our intention to turn florists’ shops into places for gambling,” said Rep. Lou Lang, a Skokie Democrat. “And so, it’s something that needs to be looked at, for sure.”

Peoria’s city council is ready to close the door on any more video gambling venues opening up. Eight of the state’s 10 casinos are reporting reveune losses up to 9 percent.

Since video gambling’s been legalized in Illinois, it has generated over $210 million for state coffers.


This article was originally posted at the IllinoisReview.com website.




Video Slot Machine Thefts a Worrisome Trend

The gambling machines have been in operation for 2 years, and now video gambling thefts are coming to light. The city of Springfield has the most video gambling machines in the state.

Thieves have broken into six bars a total of 10 times since September, targeting ATMs or cash redemption machines from video gambling terminals, according to the State Journal-Register.

In southern Illinois, burglars took thousands of dollars from a Knights of Columbus. That burglary was at least the third that occurred in Franklin County establishments with video gambling, reported the Southern Illinoisan.

Thieves have broken into video gambling machines at taverns in Collinsville, Godfrey, near Jerseyville, and in Summerfield to steal the cash. Thieves have also broken into gambling machines in Oak Lawn and Northlake.

Local residents are losing millions of dollars in the 18,000 video gambling machines that are operating in 4,500 neighborhood establishments statewide. Making gambling more accessible and acceptable in neighborhood casinos will increase addiction, bankruptcy, and crime.

Local officials should seriously consider this information when deciding whether to overturn an existing ban or issue a new liquor license to allow video gambling parlors in the community.




Resources on the Harms of Gambling

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In an effort to bring more government revenue, lawmakers are constantly looking for ways to exploit its own constituents and expand gambling throughout the state. Yet Illinois already has 10 casinos, 6 horse tracks,16,600 plus video slot machines and Lottery terminals in our local neighborhoods. Such policies are having devastating consequences on our communities.

View the resources below for statistics and research on the harms of gambling.

Quick Hits

  • Tax revenue gained from casinos is miserably overshadowed by the implicit social costs that legalized gambling brings to the community such as bankruptcy, divorce, and worker productivity. Economist Earl Grinols’ calculations show that social costs outweigh benefits by a factor of $190 to $34, or 5.6 to 1.
  • Casinos cause an increase the number of suicides in a community. In Gulfport, Mississippi, suicides increased by 213% (from 24 to 75) in the first two years after casinos arrived. In neighboring Biloxi, suicide attempts jumped by 1,000% (from 6 to 66) in the first year alone.
  • Gambling addiction rates double within a 50 mile radius of a casino.
  • Legalized gambling increases crime. A U.S. News & World Report analysis found average national crime rates in casino communities to be 84% higher than communities without
    casinos.
  • Increases family problems. A nationwide survey of divorced adults found that “2 million adults identified a spouse’s gambling as a significant factor in their prior divorce.

Resources

Gambling: A Bad Deal for Illinois

Harms of Legalized Gambling

Video Lottery Terminals & Electronic Gaming Devices

A Good Way to Wreck a Local Economies: Build Casinos

Detroit Casinos Serve as Example for Illinois

Why South Carolina Killed Its Gaming Industry

John Kindt: State’s best bet would be to phase out gambling

TAKE ACTION:  Encourage your state lawmakers to reject any bill that expands gambling in the Land of Lincoln.