Springfield officials are concerned about how a new Illinois casino could affect the town.
The Springfield Committee of the Whole opposed a resolution for a new casino in the state capital last week, citing concerns that while it may benefit some local businesses, it could also harm others.
Springfield has the highest number of video gaming terminals (VGTs) in the Prairie State, with 757 located in small businesses throughout the town. These terminals generated nearly $50 million in revenue in the previous fiscal year, as reported by the Commission on Government Forecasting and Accountability.
There is a worry that gamblers might choose to wager at casinos rather than video gaming terminals, leading to a decrease in revenue for small businesses from sales of drinks and food.
Would a Springfield casino cannibalize local businesses?
According to Ryan Bandy, president of the Central Illinois Licensed Beverage Association and owner of Springfield sports bar Win, Lose, or Draught, video gaming is a significant source of revenue for his business.
The gaming has been instrumental in the success of my bar, allowing me to grow the business, provide competitive wages for my employees, and offer health insurance benefits.
The CILBA unanimously rejected the proposal to bring a casino to Springfield, as well as any potential future plans for the idea. Additionally, it disapproved of the idea of casinos opening in neighboring towns.
According to Bandy, the group welcomes discussions and the SCW has a meeting scheduled for Nov. 15.
Springfield mayor’s odd idea
Mayor Jim Langfelder suggested restricting the gaming options at a future Springfield casino in order to support local businesses. He stated that he would approve a proposal that would prevent any new casino from including video gaming.
Bandy acknowledges that the idea is somewhat far-fetched. He mentioned to The State Register Journal:
Honestly, I have never seen a casino in the entire country that does not have slot machines. Could something change in the future? This is why the CILBA strongly opposes it now. Studies have shown in other communities the negative impact on small businesses.
Roy Williams, the alderperson for the 3rd Ward, thinks that even though there has been significant opposition to a casino, it is still important to have a discussion about it.
However, Alderperson Ralph Hanauer of the 10th Ward concurs with Bandy’s belief that a casino would have a significant negative impact on locally owned businesses. Hanauer stated:
We are considering introducing a casino operated by a large external company. If this plan goes through, how will the city benefit financially and how will it impact the local community?
Langfelder sees the potential for a casino to breathe new life into Springfield’s Wyndham City Centre, a 30-story hotel that has experienced a decline in business. He believes that a casino could transform the hotel and attract more visitors to the town.
Everyone was discussing the need for hotel accommodations. Two developers mentioned that they were unable to secure funding for a 400-room hotel. Building a casino could potentially bring value to the area.
