Legalized video gambling in bars remains in limbo

Today was supposed to be the day that bars across the state could legally offer video gambling to their patrons.

But local officials say the state's gaming board still hasn't worked out necessary details by drawing up the rules that would govern video gambling, so it could be a long time before you can legally bet at the corner tavern.

"My understanding is that they can't start doing it," Belleville Mayor Mark Eckert said. "The gaming board asked for an extension. It doesn't even have the rules set up yet. From what I hear, it could be months and months before this is ready to go."

The video poker machines are seen throughout the metro-east, but are labeled for amusement only -- they're not supposed to pay out. Under the new law, local governments have the right to ban electronic gambling in their communities. But, while a handful of counties in the northern part of the state have opted to ban gaming locally, local leaders say it is too soon to tell what they will do.

O'Fallon City Administrator Walter Denton said the information needed to make a decision on whether to allow video gambling.

"That's a good question. We've actually just started looking at it," Denton said. "I just got a report from the police chief that said the gaming board hasn't passed administrative rules for it yet and he has to wait until the administrative rules come down before he can complete his report."

Denton said he expects the City Council to take up the issue soon.

Eckert said Belleville will scrutinize legalized video betting when the rules are in place. Belleville had problems a decade ago with local taverns operating video poker games illegally and had to take steps to get the situation under control including revoking liquor licenses of bars that had poker games that paid off.

"Belleville took a harder stance than other communities and tied it to our liquor licenses," Eckert said. "I have read preliminarily that a community can choose not to accept legal video gambling, and we're going to take a good hard look at it. But until we know what the rules are, this is all very preliminary."

Mark Kern, the former mayor of Belleville who is now St. Clair County Board chairman, said he hopes legalization of the games will help solve problems they caused for Belleville in the 1990s.

"When I was mayor of Belleville, it was illegal," Kern said. "It was a waste of precious police time to send police officers into taverns to wait for something illegal to happen. Now they're going to be regulated and pay taxes."

Kern said the state is counting on municipalities allowing video gambling.

"They based their whole capital bill on the revenue from this," Kern said.

Legalizing video poker is expected to bring in approximately $300 million a year -- at least one-third of the funding for the $31 billion state capital program. That would fund projects including the Southern Illinois University Edwardsville science building, new interchanges and roadwork on Interstate 70, Illinois 3, Illinois 159 and Illinois 160, as well as a state police forensic lab and campus improvements at Southwestern Illinois College and Lewis and Clark Community College.

Granite City Mayor Ed Hagnauer said the idea of outlawing video gambling hasn't been mentioned to him, and he has no strong feelings either way about it.

"They've been there for years," Hagnauer said. "Several of our fraternal organizations, like the Eagles and the (Knights of Columbus), have them. The only difference is that they'll be allowed to pay out and the state can recoup some money on it."

Edwardsville City Administrator Ben Dickmann said the issue has been discussed there in informal conversations but not in official channels to the best of his knowledge.

"Speaking for the staff, when and if we are consulted, we would express reservations and would favor a local ordinance prohibiting them," Dickmann said. "We feel there is the potential for some problems, especially since it's so closely related the liquor license establishments."

Video gambling has led to controversy and tragedy before.

In 1995, an Edwardsville man was shot and killed outside Vanzo's Taproom in a dispute over a video poker payout. According to police statements at the time, Joseph Pelan, 59, was accidentally overpaid $100 for video gambling winnings and refused to return it. A bar regular, James Dodson, intervened to help the bartender get it back.

The altercation then went outside, where Pelan allegedly retrieved a gun from his car and shot Dodson twice.

The bar paid a $3,000 fine and had its liquor license temporarily revoked for illegally paying out on video gaming. The owner was convicted of a misdemeanor gambling charge and fined $300. Pelan died before his case came to trial.

In St. Clair County, Thomas Venezia went to prison after being convicted in 1995 of racketeering charges related to his $48 million video-poker and strip-club operation. His attorney, former Democratic force Amiel Cueto, went to prison two years later after being convicted of trying to torpedo a federal investigation into Venezia's illegal gambling operation.