Video gambling in Kane County: What would ban really cost?

Kane County Board members didn't appear intimidated Tuesday night by news of state legislation that may stick them with a hefty price tag for their decision to ban video gambling.

One reason is they couldn't agree on the price tag.

The county board received an update about three new bills in the Illinois General Assembly that all would impose a financial penalty for communities that have banned video gambling. The bills would either keep the county from receiving some of the money for capital projects the state's video gambling money would help fund, or force the county to reimburse the state for tax revenue it would have received from Kane County if it hadn't banned video gambling.

County Board attorney Ken Shepro estimated the penalty the county may have to pay the state could be as much as $1 million. County board member Jesse Vazquez also said there is as much as $61 million in capital projects on the line.

There has been a push by some county board members to take another vote on video gambling in hopes of reversing the ban. The new information initially seemed to favor that cause.

But further questioning revealed both those numbers may be well above the true impact of the bills if they become law.

The $1 million figure is based on the idea that all 22 establishments that have liquor licenses throughout the county would each have the maximum five video gambling machines generating $12,000 of revenue. But several of the 22 establishments are gas stations, convenience stores and golf courses that are either unlikely to want video gambling machines or do not qualify for the machines in the first place.

In reality, only about 12 establishments with liquor licenses are eligible for the machines. Vazquez said he doubts all 12 of those establishments will want them.

"Don't get caught up in the numbers right now," Vazquez said of the potential state penalty.

But then Vazquez' own estimate of $61 million in capital projects was also questioned. It turned out much of the money would go for capital projects in municipal areas, such as Fermilab, that are out of the county's control.

County board member Jim Mitchell said he heard the true value of capital projects the county may miss out on is $6.1 million. He asked Vazquez to bring back numbers that target only the unincorporated areas of the county at the next meeting.

"There is a lot of difference between $61 million and $6.1 million," Mitchell said.

Shepro also reported back to the county board that it does have the ability to ask voters directly about how they feel about video gambling by putting an advisory referendum on the November general election ballots.

The question would not bind the county to keep or dissolve the current video gambling ban. The board has until Aug. 30 to put a question on the ballot.

Ban: Board could ask voters about issue on November ballot