Bar and restaurant owners voiced their concern on the City of Lincoln Liquor Commission requesting to increase the gaming terminal fees from $25 to $250 at Monday’s City Council meeting.
Steve Hannel, owner of Rusty Rail, 405 Pulaski St., told the council his concerns of the proposed increase.
“This really bites into my overhead and coming right out of COVID, I think it is just not a good time to do this,” said Hannel.
Hannel said since the change in State rules that once shared the expense with game terminal operator is one factor in his concern.
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Ward 2 Alderman Tony Zurkammer questioned the Illinois Statue and asked for City Attorney John Hobblit’s help in clarification.
“My gaming guy told me they can’t help us in any way. If you increase this fee, then it is all on us,” said Hannel.
Ward 1 Steve Parrott said he would like to know exactly how many machines are we talking about which was quickly answered by Lincoln Mayor Tracy Welch.
“In 2019 we had 101 machines, in 2020 we had 162 machines, in 2021 we were at 179 and for 2022 we are on track for 240 machines,” said Welch.
Alecia Sutton, owner of the Fox Hole, 915 5th St., who has five gaming terminals in her establishment, shared her thoughts on the increase.
“It went from $1,200 to $2,200. I feel this is unfair. I don’t think gas stations should have it. Now the machines are everywhere. The value of gaming is in these bars. It irritates me on this increase. Everything is going up,” said Sutton.
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Welch, who is the commissioner of the liquor control board, shared his thoughts on hearing constituents say Lincoln turning into the mini Vegas.
“When they start referring to Lincoln as the mini Vegas, you have to step back and really look at what is going on. When we hit 240, the liquor commission had to say when is enough, enough,» said Welch.
“We aren’t trying to punish anyboy,” he added.
Sutton questioned if the mayor if they thought about allowing gaming terminals in gas stations and gaming parlors when this all began and did they even consider the impact it would have on local bar businesses.
“We did, but you have to understand we have a responsibility to grow our economy,” said Welch.
“We can’t turn down businesses, I understand where you are coming from,” he continued.
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According to Welch the increase is the maximum allowed per the law recently passed by the General Assembly and signed by Governor JB Pritzker.
“I don’t believe that Lincoln is different than other communities as others such as Dixon and Sterling have recently passed similar increases based on the new law,” wrote Welch in an email.
Lincoln has 28 different establishments that have a total of 168 machines in the city.
According to City Treasurer, Chuck Conzo, the net terminal income for December 2021 was $847,895.68. Since the City of Lincoln allowed gambling in 2012 the city has benefited with added income of $2,067,752.14.
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Sutton said when comparing her business to the big gas stations near the interstate is what concerns her the most.
“The $250 isn’t anything to them, but to the small family run bars, it is huge,” said Sutton.
Parrott, who was on the council when gaming came to Lincoln, said he didn’t want the gaming machines to hurt small businesses.
“I think we messed up with unlimited liquor licenses. But now, the council needs to reconvene and talk about this. So I’m glad you guys came forward,” said Parrott.
Holly Maestas, owner of The Lucky Dogg, 401 Limit St., said after clarifying with her gaming terminal provider they indeed can’t help with the fees but what can be done is changing the language in the city ordinance.
“We can certainly modify the language in the city ordinance. I think there is an appetite to delay this and give the city attorney time to look into this,” said Welch.
Maestas reminded the council of the local business owners who live in Lincoln.
“All of us put money back into our community. You should support those who support the community.”
After listening to the discussion Alderman Kevin Bateman made a motion to table the vote on the liquor commission ask for increasing gaming fees.
