Myths vs. Truths
Myth:
The Village of Downers Grove and the majority of restaurants and businesses in Downers Grove want Video Gambling.
Truth:
It’s the exact opposite. Village staff directly asked the Downers Grove Economic Development Corporation (EDC) and the Downers Grove Downtown Management Corporation (DMC) to formally weigh in on the topic. Both are against Video Gambling. The EDC stated it doesn’t meet their required economic threshold to make it viable. The DMC said it is aesthetically unappealing and they don’t want it.
Myth:
Video gambling will help Downers Grove Restaurants.
Truth:
Only seven Downers Grove restaurants out of 158 will be eligible to apply for gaming licenses. (Three licenses are being reserved for the Moose, American Legion and VFW.) 129 of those restaurants will not be allowed to apply, but five establishments with REC1 liquor licenses will be. The remaining seven license will be drawn from a lottery of those who apply and will not be based on need.
Myth:
The Village of Downers Grove can control what the signage will be on windows and it won’t be neon and gaudy with “SLOTS” written on it.
Truth:
Incorrect. The Village does have a sign ordinance in place. One provision restricts signs from exceeding 25% of a business’s window size. However, the Village has little to no control over the content of these signs. Currently, the Village will be revising its sign ordinance in 2025, which may soon allow neon and digital signage.
Myth:
Video gambling can generate significant revenue for the local government and businesses and will lower my property taxes.
Truth:
The estimated amount of revenue passed through to the Village would be a fraction of a percent of our overall tax revenue – such a small amount, would have a negligible effect if any on lowering property taxes. Revenues from gaming (especially in towns that prohibit “gaming cafes” — a term used for gambling venues that don’t require food and liquor to be served) is not the windfall proponents proclaim it to be
Myth:
Video gambling establishments can provide a boost to the local economy.
Truth:
95% of the revenue generated from these machines end up in the pockets of the machine operators, restaurant owners, and the State. There is no evidence to show that this additional revenue would be invested back in the community. There is also no data to show that having video gambling/gaming machines in a village or city provides any real boost to the local economy. There is evidence that businesses adjacent to establishments that allow video gambling actually move taking their sales tax revenue with them.
Myth:
Residents should have the freedom to make choices for their entertainment, and video gambling provides an additional option for those who enjoy it.
Truth:
Adult residents have the freedom to choose what entertainment they want, and with a number of neighboring towns offering Video Gambling, our village residents can simply choose to go to those establishments.
Myth:
Without video gambling options in Downers Grove, residents may travel to neighboring towns to participate in these activities, resulting in revenue leakage.
Truth:
Since 2020, DG restaurants have seen a 23% increase in revenue. Village revenue from restaurants (mostly in the form of food and beverage tax) has increased every year since 2020. There is no indication of or data that supports any revenue leakage.
Myth:
Video gambling can be closely regulated by local authorities to ensure fair play and responsible gambling.
Truth:
Nothing in the proposed ordinance we’re voting on Nov. 5, regarding the referendum question to allow video gambling, provides for an additional budget for monitoring, which will cost the Village more time and financial resources—not to mention the social costs. The village will need to use existing resources to enforce the ordinance, which may take time and resources away from other, more important, law enforcement efforts.
Myth:
Many small bars and restaurants rely on video gambling to attract customers and stay competitive.
Truth:
There has been no evidence demonstrating restaurants in town losing customers or employees because of the additional revenue generated by competitors who have video gambling. The idea that with the additional revenue restaurants can pay staff more has not been proven. In fact, data from job listing websites show that the average hourly wage for servers at restaurants in towns that offer video gambling ($15.68) is less than in towns that do not offer gaming ($18.73). It should also be noted, every restaurant now asking to have video gambling opened their restaurant after the State allowed municipal ordinances to allow gaming licenses. Meaning, they opened their restaurant knowing Downers Grove didn’t allow video gambling.
Myth:
The additional Video Gambling tax revenue will increase the amount of money that can be used for essential services such as education.
Truth:
False. It’s actually the opposite. A portion of taxes collected from casinos are set aside for schools. Municipal Video Gambling actually takes gamblers away from Casinos, so the more restaurants and bars that have these machines, the fewer gamblers there are in Casinos, thereby lowering the taxes that are being set aside for schools from these Casinos.
Myth:
The Video Gambling Referendum currently prohibits Gaming licenses for the downtown area and has restrictions.
Truth:
If approved, establishments like the Moose Lodge* and Tivoli Bowl will be permitted to apply for a Downers Grove Video Gambling license. Both of these venues are located within the Downtown Business District – so the referendum language is technically NOT correct. History shows that every town that has introduced Video Gambling began with a limited number of locations and terminals. Over time, additional locations were added to ensure fairness. This slippery slope is inevitable, and this will seep into our family-friendly downtown area.
*The Moose Lodge is currently operating under a State of Illinois Video Gaming license that allows fraternal organizations to have video gaming terminals in municipalities who have not approved video gambling. (This should be at the bottom where asterisks normally go.)
