COVID-19 pandemic shrinks Kane County riverboat gambling grants

Kane County officials are poised to set a new low watermark for the amount of riverboat gambling money they will give to local social service agencies and governments.

The dwindling grants are fueled by a major loss of business at the Grand Victoria Riverboat during the pandemic, as well as an ongoing trend of falling riverboat proceeds.

The county board's executive committee gave preliminary approval Wednesday to 26 local agencies receiving just less than $561,000.

That total stands in contrast to the more than $1 million in grants the county approved to local agencies through the mid-2010s. At the peak of the riverboat's popularity, the county received more than $12 million a year from its 7.5% cut of the Grand Victoria's annual net operating income.

As more gambling outlets entered the market, and video gambling came online, money flowing to the county from the Grand Victoria began to plummet. The pandemic furthered that loss, leading to the new low grant total this year.

County board member Chris Kious led the committee that reviewed nearly $1.2 million in grant requests from the 26 agencies that will receive funding. Only one request, for $1,500, received full funding.

That request, by the Go with the Flow nonprofit agency, pairs with recent state legislation by state Rep. Barbara Hernandez to help expand access to feminine hygiene products for women with fewer means to obtain the products. For example, women cannot use Supplemental Nutrition Assistance Program benefits to buy menstrual care products.

"This is such a low ask and such a crucial part of many of young women's lives," county board member Cherryl Strathmann said in pushing for full funding for the group.

In contrast, the Anderson Animal Shelter received no grant funding after making a $100,000 request.

The shelter is a frequent recipient of riverboat grant money. But the committee reviewing the application decided to put more of an emphasis on money that would benefit people as the local economy emerges from the COVID-19 pandemic.

The committee took $4,000 it initially planned to give the shelter and split it among the Northern Illinois Food Bank and the Association for Individual Development.

"Naturally, we've had less money to distribute from the gambling boat this year," Kious said. "It was a tough decision to divide the money as equitably as possible."

The executive committee agreed with the grant funding plan, which will spend every dollar allocated for the outside grants this year. The county keeps a larger portion of the gambling revenues to fund its own needs. Last year, it used $2.9 million in riverboat funds to help balance its books. The full county board must take a vote next week before the grants are final.