Prospect Hts. debates 10th video gambling site
Prospect Heights aldermen are debating whether to allow a 10th video gambling establishment into the city, pitting the additional tax revenue against the potential to adversely squeeze the nine other locations.
The business asking to come in is Stella's Place, a growing chain of cafe-casinos that already has 34 locations in the Chicago area, including three in Wheeling. It has video gambling terminals in back and a gathering area in front where patrons order wine, beer and snacks.
Mayor Nick Helmer supports granting Stella's a license, saying the revenue it would produce for the city is vital.
"It's important to the city to have video gaming," Helmer said this week, referring in particular to Stella's and to Penny's, a similar establishment at 1253 N. Rand Road.
Stella's and Penny's are primarily focused on gaming, with food and drink sales secondary. The other gambling locations in Prospect Heights are a pool hall, four restaurants/bars and three hotels that have a few gambling terminals as a novelty.
According to the Illinois Gaming Board, Prospect Heights has received $138,525.49 in three years from the gambling tax. Helmer believes that as the city adds more gaming terminals, it eventually could collect $100,000 a year.
Representatives from Laredo Hospitality, which owns Stella's, want to locate the cafe in the strip mall at 1201 N. Elmhurst Road, kitty-corner from Wheeling High School. No one under 21 would be allowed in, said Chief Operating Officer Charity Johns.
Prospect Heights Deputy Police Chief Al Steffen said there have no incidents involving underage patrons at Penny's, which is near John Hersey High School, since Penny's opened in late 2013.
Laredo Hospitality CEO Gary Leff said Stella's could generate $30,000 per year in new revenue for Prospect Heights. Penny's so far has generated $31,238 for Prospect Heights, while Seoul Billiards, which opened in January 2013 at 626 N. Milwaukee Ave., has accounted for $32,299 in gambling taxes so far.
The Blackhawk Restaurant Group owns Penny's and in 2013 proposed opening three Prospect Heights cafes. Aldermen approved one, stating they wanted to see how the first one operates.
Helmer said no problems have come up, and it's time to consider expanding again.
Not everyone agrees.
Alderman Patrick Ludvigsen said he appreciates the possible revenue Stella's would bring to Prospect Heights, but he fears it ultimately will hurt other local restaurants with gambling - establishments that make investments, are involved in the community and employ many workers.
Stella's, he said, expects only 5 percent to 10 percent of its revenue to come from food and liquor and therefore doesn't have the same level of community investment.
"The gaming really helped our (other) establishments survive because it is a significant amount of income," Ludvigsen said.
To get a gambling license from the state, a business must first get a liquor license from the city. To get a liquor license from Prospect Heights, an establishment must primarily be a restaurant.
Alderman Scott Williamson pointed to Penny's, arguing it is not a restaurant in the common sense of the word, and therefore has little community involvement.
Helmer rejoined that the term restaurant is not well defined.
"Yes, they only serve sandwiches or hot paninis, but is Starbucks really a restaurant?" Helmer said. "Across the nation they are obtaining liquor licenses under the restaurant connotation."
The issue is expected back before the city council on July 27. Meanwhile, Helmer has urged all aldermen to visit one of the Stella's in neighboring Wheeling.