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Galesburg considering moratorium on video gaming licenses

Jane Carlson
/
Tri States Public Radio

There are around 190 video gaming terminals in Galesburg at more than 30 different establishments.

And that could be it, if the city council approves a moratorium on new licenses. The council will consider the change on first reading at its regular meeting Monday.

Galesburg City Manager Eric Hanson and City Clerk Kelli Bennewitz are recommending an amendment to the municipal code that would direct city staff to not accept any new licenses.

It would not affect the status or renewal of existing licenses.

The city has seen significant growth in video gaming and clusters of such businesses in targeted areas of the community, according to the council letter regarding the proposed moratorium.

“In particular, one ramification of video gaming is that this use has become the primary business of several establishments,” the letter reads. “While it is possible that additional gaming terminals would generate new revenue for the city, it could also be argued that the marketplace is saturated, and additional video gaming licenses would simply further divide those establishments that are already licensed.”

Last year, with 196 gaming terminals at 36 establishments, the city’s share of revenue from video gaming was around $624,000, according to data from the Illinois Gaming Board.

The state’s share from Galesburg video gaming in 2023 was $3.6 million.

Mayor Peter Schwartzman, who has spoken out publicly about the rise of video gaming in the community, said he did not propose the change but he does support “some cap” on the number of gambling machines in Galesburg.

Schwartzman said he has been watching and reporting annually on the number of establishments and gaming terminals in the city, as well as the net loss of dollars by users.

Last year, that figure exceeded $12 million, he said.

Illinois Gaming Board data shows Galesburg users on track for similar losses this year, with over $9 million in net money lost in the machines through September.

Schwartzman said the city has also looked at the number of machines in comparable cities in Illinois. He said Galesburg doesn’t have the most per capita, but is near the top.

“There are social costs for excessive gambling in a community and given the substantial losses observed, I think capping the number at 200 machines is very reasonable,” Schwartzman said. “This is the recommended change I will make to the Council. It will be their decision to set a cap or simply declare a moratorium.”

Tri States Public Radio produced this story.  TSPR relies on financial support from our readers and listeners in order to provide coverage of the issues that matter to west central Illinois, southeast Iowa, and northeast Missouri. As someone who values the content created by TSPR's news department please consider making a financial contribution.

Jane Carlson is TSPR's regional reporter.