One of the major reasons the Video Gambling discussion was formally tabled during the November 9, 2021 Village Council meeting was to gather more information.  Specifically, several Village Council Members wanted to get feedback from the EDC and get their opinion.

The Downers Grove Economic Development Corporation (EDC) can be looked at as the United Nations of companies and organization that make up all of the Village of Downers Grove.  They were formally asked by the Village of Downers Grove government to weigh in with an official opinion on whether Video Gambling should be allowed.  They formally responded back saying they do not support it nor would they endorse it.

The EDC is made up of by a very impressive representation of a variety of organization and business types, including: several law firms; several lending institutions; local business owners; local DG municipal staff (including the Mayor, Village Manager, Deputy Village Manager, and a Commissioner); a State Senator, a State Representative; College of DuPage and Midwest University; the DG Park District; a Hilton Hotel executive; a Rotary executive; our D58 and D99 School Superintendents; National property developers Jones Lang LaSalle, Hamilton Partners, The Alter Group, and Inland Real Estate; our local ComEd utility; the DG Sanitary District; the DG Downtown Management Corp; and the Good Samaritan Hospital.

This group is literally the Downers Grove Dream Team.  They are looking at this from a variety of different angles, and they are NOT in favor of it.  Please give their collective wisdom significant weight in determining your decision. 

The actual letter response from EDC can be found here:  https://www.downers.us/corecode/uploads/document6/uploaded_pdfs/corecode/ORD%202023-10057_1176.pdf

Video Gaming is not the basis on which I want to build our future. This community has worked long and hard to clean up and improve our commercial areas over the years. Through ordinances and codes, we have compelled millions in signage and architectural design improvements. Through our Downtown and Ogden Avenue TIF districts, we have spent millions on public improvements designed to spur and incentivize private improvements, and from public signage to landscaping and streetscaping, we’ve tried to do our part in improving aesthetics. All that work has been in a direction opposite the one we’d take by embracing gaming. Elmhurst, Glen Ellyn, Wheaton, and Naperville all have thriving restaurant communities without gaming. I see no reason to emulate those communities that do.

Questions for those that support Video Gambling – what if everything supporters claim is wrong and it:

1. Does not “level the playing field?” Unless we offer three times as many licenses as surrounding communities, we’re picking and choosing winners and losers and still would have many, many restaurants at this claimed “disadvantage.”
   Convenience stores and gas stations are not being considered … thus, we would “still” be “perpetuating” a “non-level playing field” when compared to other communities.
   To “level the playing field,” we should increase taxes to match those who have gambling and institute business licenses as well.
2. Does not provide higher wages for employees?
   evidence suggests literally the opposite (see Village Commissioner Chris Gilmartin’s data).
3. Does not provide the Village significant new income?
   $200k-ish on our budget is less than 0.5%. It is the equivalent of a rounding error.
4. is not necessary for businesses to survive?
   We’ve lost zero businesses due solely to the lack of access to video gambling. Mrs. T’s Pizza has claimed gambling played a role in their decision to move to Westmont, BUT their business model is now very different. Their landlord made bad choices when Ogden and Main was redeveloped and their vacated space is being filled by another pizza place. The owner of Bryan’s American Grille has said that they can’t survive yet, through nearly a decade — including COVID – they’re still here and regularly packed.

Many issues are decided by the Council and the vast majority — 90%+ — are unanimous. But those that divide the Council nearly evenly and generate hundreds of contacts from residents could reasonably demand more public input … like a referendum. I’m glad this item was voted on to go to Referendum Nov. 5, 2024.

Let me start by saying the main reason I do not support this is that our community doesn’t want this. The vast majority of feedback we all have received, from actual Downers Grove residents, has been against gaming. The last time around, the former council received a lot of emails for and against, but through verification, most of those against gaming were actual residents. For those in favor, it was a mix of restaurant owners, employees, chamber members, out of towners, and some residents. So, arguing that emails can come from both sides is a false equivalency, and doesn’t refute the feedback we’ve received as a council from our residents, who don’t want gaming in town. I’ve spoken to Mayor Barnett and my follow Commissioners about the feedback from our residents.  Some of them expressed that they would never be swayed by resident emails, but have do have a responsibility to make decisions reflecting our community’s sentiments and vision. If you aren’t considering the overwhelming feedback against gaming, it seems like you’re discounting your constituents’ value for reasons I don’t understand.

Moreover, this isn’t about revenue for our Village. The vast majority of revenue comes from gaming cafes, not creating jobs or requiring new staff for restaurants. Since the ordinance was tabled, I reviewed publicly available state data, revealing a decline in municipality revenue per terminal for restaurant-based machines. For instance, Westmont restaurant-based gaming generated $155k in local tax in 2022, up from $125k in 2019; however, the number of machines increased from 45 to 70, indicating a 20% decrease in revenue per terminal. There’s also a 15% year-over-year decline in Westmont restaurant gaming in the first half of this year compared to last. These trends suggest we’ll earn far less than expected.

If our goal is an extra $250k in revenue, a slight increase in the food and beverage tax from 1.5% to 1.6% would achieve this, without significantly affecting our constituents. Staff didn’t align this ordinance with the strategic goal of strong economic development, indicating this isn’t about revenue for our Village. The true beneficiaries are the terminal operators and some restaurant owners, not our community.

Beyond revenue considerations, we must address the hidden costs of Convenience Gambling. This includes additional staff burden to manage gaming licenses and licensors, and law enforcement resources to enforce regulations, all leading to more costs and time spent for an unclear purpose. Furthermore, Convenience Gambling takes revenues from our schools, as casino revenue has dropped with the proliferation of video gaming, decreasing funding for education. Taxes on casino revenue, which contribute to the Illinois Education Assistance Fund, are up to 50%. Allowing gaming, therefore, is a vote against public school funding, which includes grants and helps keep state school tuition lower.

We have supported our restaurants as a community and governing body. The argument for supporting struggling restaurants was more compelling in 2020. However, 2022 revenues for restaurants look fantastic, with a 23% increase compared to 2019, and at or better than 2019 for both downtown and not downtown areas. We’ve allowed outdoor dining, rented barriers, extended outdoor dining timelines, allowed liquor pick up, and waived or delayed certain fees. The EDC ensured grants were available to restaurant owners, contributing to the minimal loss of restaurants due to COVID.

The “leveling the playing field” argument rings hollow. Since 2014, only four municipalities in DuPage County added gaming, so saying it’s for restaurant competitiveness lacks basis, especially with the revenue numbers from the last two years. The idea that gaming allows for higher staff wages isn’t supported by data, as wages aren’t better in towns with gaming. For example, using INDEED.com data, servers earn $15.68/hour in towns with gaming and $18.73 in towns without. The data leads me to conclude that restaurants with gaming don’t pay their staff more.

Claims of gaming in town being inevitable are far from the truth. Data shows towns adopting gaming has slowed since 2014. The vast majority allowing gaming did so prior to 2015, and only one has since. The market is saturated, adoption rates are low, and there’s a race towards the bottom.

I’ve avoided discussing how gaming relates to our community values and brand. As a marketer, I understand brands are created by public perception. We, as councils, have made decisions reflecting our values and desired brand. The term brand appears multiple times in our Comprehensive Plan. Decisions like banning the sale of dogs and cats, not allowing pawn shops, having requirements for paint colors and building materials in certain districts, and needing to serve food to serve alcohol in town reflect our brand. If there’s division in the council, let’s use a referendum to understand our community’s desires.

I have long called for more surveying from our Village to understand what is important to our ever-changing community to help create that brand.  Which is why I think, if some on this council are not convinced our community is against it, let’s put it to a referendum… something we have done plenty of times in the past, to help inform our decision.  I don’t view that as a lack of leadership or decision making, I view that as a tool to help a split council reflect the wants of the community. 

Communities are changing their minds on gaming. Forest Park reversed their decision via a referendum; Joliet and Aurora stopped issuing licenses; Mundelein raised their fees to curb entries. I once supported gaming but changed my mind after understanding the facts. 

And speaking of changing minds… I want to mention this idea of campaign promises – for those who talked about being in favor of this during your recent campaign, take it from someone who changed his view on this. 

During my run for this very seat, I met with a few restaurant owners reeling from the pandemic who made seemingly compelling claims about lost revenue, competitiveness and revenue to the Village.   In the throes of COVID, the uncertainty of our economic conditions, and my lack of facts around the matter had me irresponsibly declaring support for gaming as a revenue source before I knew the facts.  With clear eyes and time to research and understand the facts, it’s obvious that I was short sighted in my haste to say I would support it.  I recommended to table it to better understand.  And my conclusion is that this isn’t what our community wants, it adds no value to our Village, and I simply cannot support it.  

I, and I believe our residents,  would much rather be seen as a restaurant town than a casino town. 

Preserve Downers Grove’s Family-Friendly Atmosphere

Our Village’s Premier Status: Downers Grove is recognized as one of the premier communities in the western suburbs of Chicago. This reputation is maintained by not permitting standalone bars, strip clubs, or off-track betting parlors. Our restaurants, brew pubs, and boutique wine and beer bars thrive, generating significant sales and food and beverage tax revenue, which helps fund village operations and reduces the Village portion of real estate tax bills.

Why Risk Our Success? The Village spent a lot of time creating the 1997 Downtown TIF District to make it what it is today. Why jeopardize the atmosphere and success we have so carefully cultivated? Allowing video gambling would undermine the family-friendly environment we have worked so hard to maintain.

Critical Vote on November 5th: If the citizens of Downers Grove do not vote this down on the November 5th ballot, the video gambling ordinance passed by the Village Council on October 19, 2023, will automatically go into effect on January 1, 2025. This means video gambling will be present in Downers Grove, including Downtown.

Stay in Good Company: By voting no, we will remain in the company of prominent suburbs such as Clarendon Hills, Hinsdale, Naperville, Oak Brook, and LaGrange, which do not allow video gambling in their communities.

Your Vote Matters: I urge you to vote NO on video gambling on the November 5th ballot to preserve the family-friendly and successful atmosphere of Downers Grove.

I am firmly against video gambling in Downers Grove. This is still a government of, for, and by the people, and the overwhelming majority of residents oppose video gambling in Downers Grove restaurants. I don’t understand why this sentiment is being dismissed.

Video gambling is not comparable to a casual poker game or using DraftKings on your phone. Your monthly poker game isn’t out next to others when you’re out to dinner.  It represents a significant change in how people experience and enjoy local restaurants and how we are perceived. If it were not a major shift in community character, as stated within the Referendum we’ll be voting on November 5^th, why is it being hidden behind walls and have other restrictions? All of these restrictions are because this is a fundamental change to our Village and they demonstrate that video gambling is out of step with the values of Downers Grove. 

Moreover, the Village is currently looking into significant changes to our sign ordinances, likely to include more electronic signs, and introduce copy changing signs, and all those changes will impact signs associated with video gambling.

The notion that allowing Video Gambling somehow will create competitive balance between Downers Grove and other communities is misguided. The proposal to allow video gambling actually creates that same disparity within Downers Grove by allowing video gambling on some streets but not others. This is unfair to our local business owners.

We (the Mayor and Village Council) have received an overwhelming number of detailed unique emails from residents voicing their concern stating they do not want Video Gambling.  The fact of the matter is, when you dig into the overwhelming number of Village residents who have spoken – have spoken against Video Gambling. 

I will be voting NO to the November 5th referendum.

“Devices can be found in Berwyn but not Oak Park, Waukegan but not Lake Forest, Harvey but not Palos Park. In fact, as the average income level of a municipality decreases, the average number of machines increases.”

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