'Bar Month' at OnMilwaukee.com is back for another round! The whole month of February, we're serving up intoxicatingly fun bars and club articles -- including guides, unique features, drink recipes and more. Grab a designated driver and dive in!
Bryan Hendricks owns Avenue Tap in Silvis, the first bar in the Quad-Cities to get video gambling machines. Brian Wellner, QUAD-CITY TIMES Video gambling terminals, including ones in the City. The Illinois Video Gaming Act became law on July 13, 2009, regulating the use of video gaming terminals (VGTs or slot machines) in licensed establishments in Illinois. (WTVO) — On Friday, bars and restaurants across Illinois will be able to seat people inside. Owners and staff have been preparing for Phase 4. But at what some owners are calling the. Like Las Vegas — as well as Indiana, where regulators announced this week the state’s 13 casinos can reopen at 6 a.m. June 15 — Illinois casinos will be capped at 50% capacity, though that.
At bars all over the Milwaukee area, patrons sit down, order a drink and take their chances at a video gambling machine.
In just about every bar, you can find one of these machines. And for every machine, there is at least one patron willing to dump in money for hours on end, despite labels proclaiming 'for entertainment use only.'
Many times, though, the label is as decorative as beer advertisements on the wall. The fact is a large percentage of bars offer payouts for gamblers, in direct violation of Wisconsin state statutes.
Under a 1999 agreement that reduced penalties for operating illegal machines, enforcement is now handled solely by the state Department of Revenue, which makes sure bar, restaurant and hotel owners are paying appropriate taxes on revenue generated by machines.
Before then-Gov. Tommy Thompson revised the state law, violators faced felony charges, fines of up to $10,000, loss of liquor license and prison time. The current state law allows bars to have up to five video poker machines and paying out winnings is a civil offense, carrying a $500 fine and no loss of license.
Bars with more than five machines, however, could face criminal charges, according to Department of Revenue Communications Officer Jessica Iverson.
Regulating the machines is big business for the DOR, which has brought in nearly $23 million in taxes since the law went into effect in 2003. Proceeds generated through video gaming machines are taxable income, and the gross receipts are subject to the state's sales tax.
To keep things in check, the department relies heavily on tax audits and also enlists the help of Alcohol and Tobacco Enforcement agents.
'Our ATF agents come across the illegal machines through the course of normal inspection as well as in the course of investigating other tobacco or alcohol law violations,' Iverson says. 'We also, of course, conduct tax audits of businesses. If auditors identify gambling operations during the course of those audits, they will enlist the help of ATF agents to enforce that part of the statute, as well.'
In addition to the tax implications, the Wisconsin statute 945.01 (c) makes it illegal to operate any machine that affords a player to win something of value determined by a game of chance.
The threat of audits, fines and licensing issues aside, bar owners are willing to make the illegal payments because the machines bring in a big chunk of money.
'People sit down when they're bored,' said one bar owner who spoke with OnMilwaukee.com under the condition of anonymity. 'They're more inclined to spend more time and buy more drinks when they're at the machines and have a chance to win some money.
'A lot of people, if there's nobody at the bar, will sit at a machine and make a couple bucks to pass the time.'
At this particular establishment, players receive a ticket when done that they can redeem at the bar for their winnings. The bar owner knows he's taking a chance, but there's big money to be made, especially important in the current economy.
'It's a little bit scary, yeah,' he said. 'But it's a risk you take.'
Earlier in the decade, the Tavern League supported a measure introduced by Rep. Terry Musser (R-River Falls) that would have legalized the machines, generating as much as $380 million in revenue. Other supporters of the bill wanted to prevent Wisconsin Native American tribes, legally operating casinos under a compact with the state, from having a monopoly on gaming.
Some states are reconsidering their stances on video gambling in an effort to patch up growing budget deficits.
In Pennsylvania, Gov. Ed Rendell proposed legalizing some forms of video gambling as a means to fund free college tuitions at the 28 campuses in his state. Officials there estimate that roughly 17,000 video poker machines are operating illegally. Those machines, if legalized, could generate as much as $550 million, according to Gov. Rendell's plan.
'This is not an expansion of gaming,' Pennsylvania Revenue Secretary Stephen Stelter told The Philadelphia Inquirer earlier this month. 'It is the recognition that video poker is already a thriving industry.'
Eight of Illinois' 10 casinos are operating under reduced daily hours and new capacity limits amid rising COVID-19 positivity rates in most state regions.
The new Illinois Gaming Board rules, the latest of which took effect this week at Rivers Casino in Des Plaines, mean most casinos are open from 8 a.m. to 11 p.m. daily, and capacity is limited to 25%. That's down from the 50% limit established in July, when gambling houses were allowed to reopen after being closed 3½ months at the onset of the pandemic.
Indoor food and beverage service is suspended, but outdoor service, curbside and carryout are permitted under the state's rules. For instance, at Rivers, Hugo's Frog Bar & Chop House and the new BetRivers Sportsbook are serving food on outdoor heated patios.
The latest restrictions were triggered by positivity rates averaging at least 8% for three consecutive days in most regions of Gov. J.B. Pritzker's Restore Illinois plan. The new rules, for now, apply to all casinos in the state except Par-A-Dice Casino in East Peoria and Jumer's Casino in Rock Island, which are in Region 2.
The same rules apply at many of the 36,000 video gambling machines in bars and restaurants statewide, which can remain open for betting from 8 a.m. to 11 p.m., though food and beverage can't be ordered.
Mask wearing, social distancing and sanitation measures still apply at casinos and video gambling terminals as they did this summer, state regulators say.
'I want to thank our industry licensees at casinos, video gaming locations and our terminal operators for their efforts to comply with COVID-19 mitigation efforts and to take reasonable and common-sense steps to keep themselves, their employees and their patrons safe during this very challenging time,' Illinois Gaming Board administrator Marcus Fruchter said during a special board meeting Thursday. 'Needless to say, failure to comply with these common sense restrictions could result in serious health consequences for everybody and further contribute to the resurgence of COVID-19 cases across the state that could put the health and continued operation of our industry in jeopardy.'
Failure to comply, Fruchter added, could subject licensees to discipline, up to and including revocation.
The rules could be relaxed, officials said, if a region's positivity rate averages 6.5% or less over a two-week period.
Also Thursday, Fruchter announced at least a six-month delay in the awarding of new casino licenses in Waukegan, the South suburbs, Rockford and downstate Williamson County.
Wisconsin Gambling Machines In Bars
The original deadline was Wednesday -- a year after applications were submitted -- but Fruchter attributed the delay to pandemic-related difficulties his staff members encountered during their routine review and investigation process. That included problems making site visits, conducting interviews and obtaining tax documents and other records from local, state and federal agencies, he said.
Illinois Gambling Machines In Bars
The vetting process continues, he said.
'Like all governmental agencies and private businesses, the board's work has been impacted by COVID-19,' Fruchter said. 'This is not an excuse or a crutch. It is simply a recognition of the realities that work and life are different in a global pandemic.'