Game over? DeKalb considers prohibiting video gaming at restaurants, gas stations, liquor stores

DeKALB – The DeKalb City Council on Monday is expected to consider a proposal which would limit the number of video gaming terminals used for gambling in the city, including prohibiting them at restaurants, gas stations and liquor stores.

The consideration isn’t up for a vote, though a decision is expected during the Council’s regular meeting set for 6 p.m. Monday at the DeKalb Public Library, 309 Oak St., according to city documents.

Debate over protocol related to video gaming and established city code has long since been a topic at Council meetings.

Renewed interest in the topic was prompted as elected officials consider whether to grant an extension for a request by Fatty’s Pub & Grille owner Jeff Dobie to open a drive-thru liquor store with video gaming at 1221 W. Lincoln Highway, across from Fatty’s. The request, made by Dobie through Blue Ridge LLC, has been in the works for nearly five years. The Council previously granted Dobie extensions on the request, another is up for vote Monday.

According to city documents, Dobie is asking the Council for a one-year extension after they approve his permit, with plans to begin construction on the building this year. Completion is slated for the fall.

CJ’s Gaming Bar at 2022 Sycamore Road has a conditional city video gaming license, but awaits state licensure. If CJ’s and Blue Ridge LLC’s request is approved at the city and state level, DeKalb would have 11 video gaming establishments, despite a municipal code that limits the number to 10.

The name stayed with the video gambling business and now, there are two Charley’s Video Gaming parlors.

Ibarra said there are three entities that work in the business together – the business housing the terminals, whether it is a restaurant, bar or café; the company that owns and operates the terminals; and the state.

Through August – the most recent available data – the state has collected almost $1 billion, and another nearly $200 million in video gambling tax has been distributed to municipalities. Illinois has collected $8.1 million from DeKalb County video gambling. — Shaw Local file photo – The DeKalb City Council on Monday, March 13, 2023 is expected to consider a proposal which would limit the number of video gaming terminals used for gambling in the city, including prohibiting them at restaurants, gas stations and liquor stores. (Matthew Apgar)

In February, DeKalb City Manager Bill Nicklas gave a report to the City Council which prompted further discussion, documents show. Officials debated over how many video gaming terminals should be allowed in the city, and in what type of business establishment.

Current DeKalb municipal code limits the amount of video gaming establishments in the city to 10. Each is allowed up to six video gaming terminals. DeKalb has nine fully licensed video gaming establishments in the city, according to city records.

Additional standalone gambling terminals are allowed in multiple area businesses, however, including bars and restaurants, documents show.

DeKalb has 113 active video gaming terminals, including 59 at area businesses with liquor licenses, and 54 at nine video gaming establishments, documents show.

In 2022, the city took in $391,000 in tax revenue from the terminals, the highest annual revenue to date, according to city records. License fees brought in $96,000 for the terminals in 2022.

Among the recommendations city staff are asking Council members to consider includes a plan to prohibit video gaming terminals in gas stations, food and fuel establishments, liquor stores and current and future restaurants, documents show.

The proposal would maintain existing limitations, including that only 10 video gaming establishments be allowed within city limits, and that each establishment only be allowed six terminals.

Gambling terminals would still be allowed at businesses holding a bar license, documents show.