Buffalo Grove to allow video gambling at full restaurants

Buffalo Grove has lifted its seven-year ban on video gambling machines at full-service restaurants in the village but will continue to prohibit gambling cafes, which derive a majority of their revenues from the machines and offer limited food and beverage menus.

A measure approved by the village board Monday allows qualified establishments to install up to five gambling terminals. They'll pay an annual licensing fee of $1,000 for each machine to the village, as well as a $250 application fee, and also must obtain a state license.

"We're looking at this as an opportunity to really promote full-service restaurants within our community," said Christopher Stilling, Buffalo Grove's community development director.

Village President Beverly Sussman said she's been in contact with other suburban mayors who have video gambling in their towns and none offered a negative comment or concern about it.

"There were no police calls or sheriff calls regarding video gaming," Sussman said. "One of the mayors, in fact, said that businesses felt that it was helping them save their business because it helped them pay taxes and utilities. Some villages are getting as much as $300,000 or more for this. It's bringing people into their villages."

Village Manager Dane Bragg said it is not yet clear how much additional revenue Buffalo Grove should expect from allowing video gambling in town.

Under the 2009 state law that allowed video gambling in restaurants, bars and other establishments, the village will receive 5 percent of each machine's revenues, with the state getting 25 percent. Remaining revenues are divided between the machine's vendor and the bar or restaurant.

According to a village board memo, officials believe video gambling revenues will allow local restaurant owners to stay afloat and reinvest in their businesses. Developers and brokers who have met with village officials say certain companies will not open new restaurants in communities that do not have video gambling, the memo states.

"I think it allows our existing restaurants to become more competitive with the surrounding communities and, as we look to develop economic corridors within the village, it can only help us attract new businesses and new restaurants in particular if we can also offer them this," Trustee Joanne Johnson said. "So I think this is the time to do it."

Officials said they'll continue to prohibit cafes that focus on gambling because those businesses invest little into the spaces they occupy and hire few employees.

"We felt it would be best just to allow this as an ancillary component to existing or proposed new full-service restaurants," Stilling said.