Board of Trustees — Skokie, IL
Date: 2026-06-15

Agenda
Committee of the Whole with Village Board

Monday, June 15, 2026 – 6:00 p.m.
Skokie Village Hall
Conference Room D&E

 1. Call to Order and Roll Call

 2. Approve, as submitted, minutes of the Committee of the Whole
 meeting held Monday, April 20, 2026

 3. Review and Discussion of Video Gaming

 4. Adjournment




#639934
 DRAFT

MINUTES of Committee of the Whole – with Mayor and Board of Trustees of the Village of
Skokie, County of Cook, Illinois held in Conference Room A of the Village Hall at
5:32 pm on April 20, 2026.

Present were: Mayor Tennes, Clerk Desai and Trustees Iverson, Kimani Levy, Lissa Levy,
Robinson, Schechter and Pure Slovin. Also present were Village Manager Lockerby, Assistant
Village Manager Wyatt, Corporation Counsel Elrod, Community Development Director Nyden,
Building and Inspection Services Manager Schnur, Management Analyst Varrige and Allyson
Brekke from Matrix Consulting Group.

Trustee Pure Slovin arrived at 5:50 pm.

Approve, as submitted, the minutes of the Committee of the Whole meeting held Monday,
March 16, 2026. Motion made by Trustee Lissa Levy and seconded by Trustee Schechter. On a
roll call vote, the motion passed.

Community Development Director Nyden and Allyson Brekke from Matrix Consulting Group
presented a review of permitting, development, and inspection processes, including identified
opportunities and recommendations. Trustees discussed implementation, workload, staffing,
outreach, technology utilization, language access, reinforcement and training.

At 6:33 p.m., following their presentation and summary, Community Development Director
Nyden, Building and Inspection Services Manager Schnur, Management Analyst Varrige and
Allyson Brekke from Matrix Consulting Group left the room.

Corporation Counsel Elrod provided a review of Village Board and Board Meeting Protocol. He
also provided a review of a draft code of conduct. He recommended codifying the protocol and
code of conduct into the Village Code by creating an enabling provision and then adopting the
policies by resolution. The Village Board expressed appreciation and satisfaction with the draft
policies. The Board consensus was to place both policies on the Village Board agenda without
any changes.

Public Comment –
Roman Bujdei spoke about review of permitting.
Jinsky Jean-Pois thanked the board for their work on public comment policy.

A motion to adjourn was made by Trustee Pure Slovin and seconded by Trustee Lissa Levy. The
motion carried, and the meeting adjourned at 7:19 pm.


____________________ ________________________
Ann Tennes, Mayor Minal Desai, Village Clerk
Memorandum
Community Development Department

TO: Mayor & Board of Trustees

FROM: John T. Lockerby, Village Manager
 Johanna Nyden, AICP, Community Development Director

DATE: June 4, 2026

SUBJECT: AGENDA ITEM: Committee of the Whole June 15, 2026
 Video Gaming in Skokie Discussion

This memorandum provides background information on video gaming in Illinois, Skokie, and
other municipalities. Additionally, it summarizes considerations for the Village in the potential
implementation of allowing video gaming terminals (VGTs).

Background
Illinois legalized VGTs through the Video Gaming Act, which took effect on February 19, 2012
(230 ILCS 40). VGTs are electronic slot machines or multi-game machines that allow players to
wager up to $4 per spin (increased from $2 in 2019) and have a maximum single payout of
$1,199. A subsequent amendment to the Act in 209 allowed that a single establishment is
allowed to have up to six (6) machines (this was an increase from the initial four (4) machines
that were allowed when the Act was enacted).

The Act established a comprehensive licensing and regulatory framework administered by the
Illinois Gaming Board (IGB). Under the Act, VGTs are allowed in specific locations:

 • A licensed retail establishment where alcoholic liquor is served for consumption on
 premise such as a bar or restaurant;
 • A licensed fraternal establishment that derives its charter from a national fraternal
 organization;
 • A licensed veteran’s establishment that derives its charter from a national veteran’s
 organization;
 • A licensed truck stop establishment that is at least three (3) acres with a convenience
 store with separate diesel islands for fueling and parking commercial motor vehicles.

The IGB oversees all aspects of video gaming licensing, including:

 • Terminal Operator Licenses — companies authorized to place and maintain VGTs
 • Establishment Licenses — individual retail establishments approved to host VGTs
 • Technician Licenses — individuals authorized to service VGTs
 • Manufacturer Licenses — companies authorized to manufacture or distribute VGTs


In late 2025, the City of Chicago lifted the ban it had previously maintained to allow VGT
activities in Chicago establishments.
Local Municipal Regulation
Illinois law provides municipalities in determining whether and how video gaming is permitted
within their borders. Skokie presently does not allow VGTs in eligible establishments. Illinois
law (as well as subsequent legal proceedings) have upheld a municipality’s ability to regulate
the location of VGTs in eligible businesses. Furthermore, in addition to the portion of revenue
returned to local communities from the state, home rule municipalities may enact additional
fees associated with VGTs. Examples of local control may be:

 • Limitation on total number of VGTs in Village limits and/or number of establishments
 that can house VGTs: Limit or cap the total allowed in the Village.
 • Zoning and Location Restrictions: Utilize zoning authority to limit where licensed
 establishments may operate VGTs. This could include specific distance proximity
 restrictions to schools, churches, parks, or residential zones.
 • Hours of Operation: Regulate the hours during which VGTs may be in operation within
 their jurisdiction, subject to their general police powers.
 • Local Licensing: Adopt additional local licensing requirements for video gaming
 establishments or terminal operators that supplement the state licensing process.
 • Location requirements within licensed establishment: This could include requiring
 separate area for VGT operation (i.e. may not operate within general area/dining or bar
 area and must be in separate area); no exterior signage advertising VGT, no noise may
 be emitted from VGT, minimum size for overall licensed property.

Revenue Structure
A significant supporting factor for allowing VGTs in local communities is the opportunity to gain
new revenue. Specifically, this is called, net terminal income (NTI) — the amount wagered
minus payouts to players — is divided among multiple stakeholders under a statutory formula
in the Act. The current general distribution of NTI is approximately as follows:

 • 33% to the State of Illinois (deposited into the Capital Projects Fund)
 • 29% to the licensed terminal operator
 • 29% to the licensed establishment
 • 5% to the municipality or county in which the terminal is located
 • Small percentages retained for administrative and other purposes

The following table highlights revenue from January 2025 through December 2025 for several
nearby north/northwest suburban communities. This information was obtained from the IGB.




Document Number: 638273 Page 2 of 4
 Community Total Amount of Total Revenue # of Licenses Revenue/License
 $ Played from State
 Morton Grove $92,507,105.24 $408,869.63 12 $34,072.47
 Niles $223,114,216.05 $979,131.74 30 $32,637.72
 Palatine $50,836,339.47 $234,218.51 11 $21,292.60
 Prospect Heights $78,506,188.42 $362,480.25 13 $27,883.10
 Rolling Meadows $60,665,937.58 $280,768.61 7 $40,109.80
 Schaumburg $70,799,809.97 $335,286.66 21 $15,966.03
 Wheeling $141,882,174.12 $659,318.27 32 $20,603.70

In addition to receiving revenue through the NTI formula, local home rule municipalities may
charge additional licensing fees to operate. For example, in the Village of Wheeling, there are
specific liquor licenses associated with establishments that house VGTs. These per
establishment licenses range from $0 to $2,500 per establishment; there is an additional fee of
$500 per VGT at each establishment. Since the state allows up to 6 machines per establishment,
the maximum amount of VGT fee per establishment, in this case, collected would be $3,000.

The addition of VGTs in Chicago may have negative impact on the revenue for these machines
and the municipalities. The increase in supply of VGTs in the region may result in a shifted
demand for individuals to visit Chicago establishments over suburban ones.

The Northwest Municipal Conference recently completed a survey of members regarding video
gaming on behalf of Grayslake. The results are attached to this memorandum.

Additional Considerations
Beyond potential new revenue, there are additional considerations to allowing VGTs within the
municipality. These include:

 • Public Health: There is a growing body of scientific research that links gambling with
 poor health and financial outcomes. The attached article, “Is Gambling Becoming a
 Public Health Crisis?” from Harvard Magazine summarizes the impact of online and
 video gambling on the public.
 • Community Character and Land Use: Video gaming may affect the character of
 commercial corridors, particularly if concentrated in specific areas and strict signage and
 appearance rules are not established and administered.
 • Equity Among Food/Beverage Establishments: Allowing VGTs in food and beverage
 establishments may create a competitive landscape for local bars and restaurants.
 Some establishments may feel pressure to include this use in their operations.
 • Growing Usage of Online Gambling: Gambling through one’s smart phone is increasingly
 popular. An article published in the New York Times, “States are Raking in Billions From
 Slot Machines on Your Phone”, highlights the significant market share online gaming has
 – utilize of VGTs in establishments may not be attractive if you can gamble easily from
 your phone in whatever location you are.



Document Number: 638273 Page 3 of 4
 • Enforcement and Monitoring Ability: If allowed, the ongoing approval, monitoring, and
 enforcement of these activities will require additional staff time and attention.
 Additional revenue may be able to account for this increased workload.
 • Limited Growth in Skokie: Anticipated restrictions on the use and location of VGTs with
 allowed establishments may limit the total number of establishments that would seek to
 introduce this use (e.g. a likely restriction to require a separate space for VGTs to
 operate within an state allowed establishment may present a physical constraint on a
 business owner).

Attachments:
-“Is Gambling Becoming a Public Health Crisis?” from Harvard Magazine
-“States are Raking in Billions From Slot Machines on Your Phone” from New York Times
-Survey Results from Northwest Municipal Conference Survey




Document Number: 638273 Page 4 of 4
Video Gaming Survey - VOS 640210 May 2026


 6. If yes to question 5, are there any limitations on the number of
 If yes: licenses for:
 3. Are there any
 separation rules between
 businesses hosting b. Maximum 7. Do you limit the 12. Are there any
 machines from schools, 4. Are the machines only 5. Do you require a specific number of percentage of space open to 9. Do you charge a license other types of
 1. Does your 2. Are there restrictions on churches, or other allowed in certain zoning Village gaming machine a. Maximum number of total machines c. Maximum number of the public in a business that 8. Do you require the machines to fee and if so what amount 10. Are there any exterior 11. What is the estimated per regulations or
 community allow what type of businesses can businesses with district(s)? If so which license for each business licenses of businesses in licenses in the machine licenses per can be used for these be in a separate room or per business and/or per sign limitations beyond the machine annual revenue the limitations you
 Municipality video gaming? host machines? machines? zones? and/or each machine? the village?: village? business? machines? enclosure?    machine? normal sign ordinance rules? village receives? have enacted? 13. Comments
 Arlington Heights No.
 Barrington No.
 Buffalo Grove Yes. Liquor establishments who hold N/A. N/A. No, however, we charge for N/A. N/A. 1 - all machines on 1 N/A, however, it is preferred to N/A. Application fee for video Not permitted to advertise for For licenses and municipality N/A.
 a class A or A1 license and each machine annually. license. be less than 10%. gaming $250. video gaming in any street, distributions $4,500/terminal.
 Licensed Truck Stop Annual fee for video gaming alley, or public right-of-way
 Establishment. locations, per terminal $1,000. within the Village.

 Des Plaines No. The City allows
 gambling/wagering/
 gaming only on the
 premises of the
 Rivers Casino. No
 video gaming is
 authorized
 elsewhere in the
 Elk Grove Village Yes. Gaming is permitted in facilities Gaming is permitted in Gaming is permitted in No. 3-17-7: LICENSE RESTRICTIONS; REQUIREMENTS: 3-1-6: LICENSE FEES/TAXES: No. N/A. See Title 3 Chapter 17
 as defined: facilities as defined. locations where licensed. A. Locations Of Terminals; Minors Prohibited: All video gaming The specific enumerated
 terminals shall be located in a segregated area which shall not be businesses, occupations and https://www.elkgrove.org/home/
 LICENSED ESTABLISHMENT: accessible to minors. Applicants shall submit a site plan clearly activities below shall pay a fee showpublisheddocument/15514
 Any retail establishment indicating the proposed location of all video gaming terminals and the for licenses as follows: /638960528938930000
 licensed by the Village where type of barrier to be utilized to segregate the area, provided however, Video gaming (Chapter 3-17)
 alcoholic liquor is drawn, that such barrier shall not obstruct the view of the video gaming area $1000.
 poured, mixed, or otherwise which shall be visible to an employee at all times. Furthermore, such
 served for consumption on the site plan must be approved by the video gaming
 premises. Licensed commissioner or their designated agent.
 establishment does not include B. Direct Connect: All licensed establishments shall be equipped with
 a facility operated by an a direct connect burglar alarm system to Northwest Central Dispatch
 organization licensee, an in instances of unpermitted entry into the establishment, which
 intertrack wagering licensee, or system shall be approved by the Chief of Police.
 an intertrack wagering location C. Video Camera Surveillance: Each licensed establishment shall be
 licensee licensed under the required to install, operate and maintain a video camera surveillance
 Illinois Horse Racing Act of system capable of recording clear and unobstructed photographic
 1975, being 230 ILCS 5/1, et representations of the segregated area of the establishment where
 seq. or a riverboat licensed the terminals are located and shall retain the video recordings
 under the Illinois Gambling Act, produced therefrom for a minimum of thirty (30) days. Said video
 unless waived by the Illinois recordings shall be subject to inspections by the Police Department
 Gaming upon request therefor.
 Board.




 Kenilworth No.
 Lincolnshire No.
 Mount Prospect Yes. The Business must have a Video gaming is prohibited N/A. No, this is connected to their N/A. N/A. 6 Machines per business. The total segregated video See attached. There is a $300 Application Single window sign, not to The establishment shall be required to install,
 Liquor License for at least 1 in any establishment located Liquor License. gaming floor area shall be no Fee and an Annual 1,000 per exceed four (4) square feet in operate and maintain a video camera surveillance
 year and be in good standing within one hundred feet more than three hundred (300) machine Annual Fee. area shall be allowed. Said sign system capable of recording clear and
 with the Village. (100') of any school or place square feet or twenty-five shall be allowed to be unobstructed photographic representations of the
 of worship. percent (25%) of the restaurant illuminated, but shall not flash, segregated area of the establishment where the
 dining area of the premises, chase or convey movement of terminals are located and shall retain the video
 whichever is less. any kind. No other signage in recordings produced therefrom for a minimum of
 relation to video gaming shall thirty (30) days. Said video recordings shall be
 be allowed. subject to inspections by the Police Department
 upon request therefor; The establishment shall be
 equipped with a direct connect burglar alarm
 system to Northwest Central Dispatch in instances
 of unpermitted entry into the establishment which
 Niles Yes. Full-service restaurants, pool 100 feet, building to Yes. 33 198 One No. Yes, if customers under the age of $750 per video gaming terminal No external signage allowed, $7,560 per terminal. No.
 halls, video gaming cafes and building. twenty-one are allowed in the per location to the per ordinance.
 fraternal organizations (VFW). business, video gaming area must establishment and the same to
 be separated. the Terminal Operator.
 Prospect Heights Yes. A pouring liquor license is None. Video gaming requires a liquor The City issues gaming No. No. Each business can have No. Yes. $250 per machine. No. $5,000 per machine annually. No.
 needed. license issued to a restaurant licenses per machine for $250 up to 6 machines per the
 and this use is allowed in our each. State.
 business districts with a special
 use.
 Rolling Meadows Yes. The City has The City previously allowed No. At least one No specific provisions. Yes, for each business; each GA and GC licenses for No. Six per business per the No, but see 6c above. Yes, per the Video Gaming Act as • Gaming Accessory license No. Most recent 12 months, See attached. The City continues to regularly
 had multiple Gaming Cafes (GC), which Councilmember has operator + establishment; and businesses are liquor Video Gaming Act. Also, well as this local requirement: " The (GA): $120 annually. including municipal share and postpone the imposition of a
 iterations of its were standalone businesses requested the City evaluate each machine (see below for licenses. As is customary, for Gaming Accessory video gaming area of a GA-licensed • Gaming Cafe license (GC): all licenses: push tax pending final court
 video gaming primarily devoted to video this. Whether or not fees). the number of liquor licenses: "The establishment must be separated $4,500 annually. resolution.
 regulations, gaming. It has declared its enacted, the City Council licenses is always equal to establishment must from the other area of the • Terminal operator • Gaming cafes: $11,900 /
 including through intent not to authorize new has the discretion to create the number of issued maintain customer establishment by a partition wall establishment license: $2,000 machine / year.
 zoning, liquor licenses of this time and to an additional license to allow licenses. The City Council, seating outside of the consisting of (a) a four-foot solid and per establishment. • Restaurants: $4,400 /
 licensing, and both eliminate existing licensees for video gaming and it at the recommendation of gaming area but within permanent/stable material such as • Terminal license: $1,000 per machine / year.
 in combination. through attrition. The only new considers these criteria. the Local Liquor the premises at a ratio of wood, paneling, or finished or terminal.
 There were licenses that the City Council Commissioner (Mayor), at least five seats for painted dry wall visual barrier for the
 considerable intends to issue are Gaming considers requests to each permitted video lower half and (b) lattice or design
 difficulties in Accessory (GA) licenses, which increase the license limit in gaming terminal. An blocks for the upper half. "
 administering authorize video gaming as an its legislative discretion. establishment may have
 previous versions of accessory use to a bona fide up to a maximum of six
 these regulations. bar or restaurant. terminals."




 1
Video Gaming Survey - VOS 640210 May 2026


 6. If yes to question 5, are there any limitations on the number of
 If yes: licenses for:
 3. Are there any
 separation rules between
 businesses hosting b. Maximum 7. Do you limit the 12. Are there any
 machines from schools, 4. Are the machines only 5. Do you require a specific number of percentage of space open to 9. Do you charge a license other types of
 1. Does your 2. Are there restrictions on  churches, or other allowed in certain zoning Village gaming machine a. Maximum number of total machines c. Maximum number of the public in a business that 8. Do you require the machines to fee and if so what amount 10. Are there any exterior 11. What is the estimated per regulations or
 community allow what type of businesses can businesses with district(s)? If so which license for each business licenses of businesses in licenses in the machine licenses per can be used for these be in a separate room or per business and/or per sign limitations beyond the machine annual revenue the limitations you
 Municipality video gaming? host machines? machines? zones? and/or each machine? the village?: village? business? machines? enclosure?    machine? normal sign ordinance rules? village receives? have enacted? 13. Comments
 Schaumburg Yes. Yes - maximum of 5 video Yes - no video gaming café Video gaming cafes are only Each business applying for Video Gaming/Liquor 6 No. However, all machines Yes. $1,000 Video Gaming Fee + No. The cost per terminal is $500. Below is link to
 gaming café licenses are shall be located within one allowed as a special use in B-2 video gaming is required to License Class Q-V has a including the redemption center $500 fee per gaming machine. This amount is fixed, so an code section
 permitted. Restaurants that thousand five hundred zoning district. Restaurants are obtain specific Video Gaming/ restriction of 5 licenses must be ADA accessible. 'estimated per machine annual 154.90.22 for
 service full service menu can (1,500) feet from any other permitted in all business zoning Liquor License, depending on allowed total; other classes revenue' figure would be the Video Gaming
 also have video gaming and establishment licensed and districts (B1 through B-5) either the type of business and what have no limitations as long same. Cafes. Below is
 are excluded from cafe authorized by the village to allowed by-right or special use. liquor license they need. as the business is a licensed also link to Video
 licenses. operate video gaming restaurant and is allowed per gaming license
 devices. building lease/management and resource
 (Woodfield Mall for example guide.
 does not allow that in their
 lease) https://library.muni
 code.com/il/schau
 mburg/codes/code
 _of_ordinances?n
 odeId=TIT15LAUS
 _CH154ZO_SPUS
 _S154.90.22VIGA
 CA

 Skokie No.
 South Barrington No.
 Streamwood Yes. By special use Yes. Yes. C-2 and C-3 Yes. No. No. Yes. 6, as regulated by No. No. • $250 per gaming machine. No. $4,700 See link to See Section 11-13-8(C)(1) and
 only. the Illinois Gaming Board • $800 for the supplemental regulations. (4)
 video gaming liquor license.
 • Varying fee for primary liquor https://codelibrary.amlegal.com
 license based on liquor license /codes/streamwoodil/latest/stre
 classification granted. amwood_il/0-0-0-12865
 • $420 general business license
 fee.
 • $30 additional license fee for
 an ATM.




 Vernon Hills No.
 Wheeling Yes. None aside from the Regarding schools and They are only permitted in our Yes for each business, but not Not in practice. The No. No. The Illinois Video No. No. Yes, $1,000 per terminal per No all signage must comply The 2025 estimated total Wheeling
 restrictions in the Illinois Video churches, none aside from B Districts and our MX (mixed for each machine. Wheeling's Wheeling liquor code sets a Gaming Act currently year. with Village Sign Code revenue from video gaming principally
 Gaming Act the restrictions in the Illinois use commercial) Districts. video gaming license fee is maximum number of sets a maximum of six. (including both gaming tax and regulates gaming
 Video Gaming Act (and the calculated on a per-terminal authorized liquor licenses of gaming license fees) is through its liquor
 Illinois Liquor Control Act as basis, but issues one license to each class, and this is $817,500, and the number of code: all classes
 applicable). With respect to the establishment, not stickers always equal to the number gaming terminals in Wheeling of Wheeling liquor
 other businesses with for individual terminals. of license-holders currently during that period was license either
 gaming, Wheeling allows no operating, but this number is approximately 152, yielding explicitly allow or
 more than one adjusted up or down by the estimated annual per-terminal explicitly prohibits
 establishment that conducts Village Board as new revenue of $5,378. video gaming on
 gaming as its principal licenses are granted or the licensed
 business activity (defined as businesses cease operating. premises.
 a "gaming café" with respect Therefore any
 to liquor licensing and as a liquor retailer with
 "gaming establishment" with gaming terminals
 respect to zoning) per is also subject to
 Winnetka No.
 VOS DOC -640210




 2
 2/24/26, 8:38 AM

 15 Gamb""s Becoff"ng a pubhc H^ ^ I Ha^ ^az,ne




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 ambling Beconung , public Health



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 arvard.research-gamfaiing.pub^.h^ith^n.i
2/24/26, 8:38 AM ts Gambling Becoming a Public Health Crisis? | Harvard Magazine




 Q^D

 Malcolm Sparrow Website




 S B f X
 AMBLING GOES BACK MILLENNIA, but todays proliferation of mobile
 phones has transformed it into a nearly ubiquitous global
 commercial enterprise, with looming public health implications.
 You ve got your casino in your pocket 24-7, observes Harvard
 Kennedy School professor of the practice of public management Malcolm
 Sparrow, who specializes in the regulation of public harms. Gone are all of
 the normal impediments and obstacles to gambling, such as place
 restrictions. Sparrow is co-author of a recent Lancet report which estimates
 that worldwide/ 46 percent of adults (approximately 2.3 billion people) and
 nearly 18 percent of adolescents (159.6 million youths between 10 and 19
 years old) have gambled m the past year. Gambling is not like other leisure
 activities. It s a health-harming addictive behavior that affects not only an
 individual s well-being^ points out an accompanying editorial, but also their
 wealth and relationships/ families and communities.../


 Although only a small proportion of individuals engage in problem gambling
 —an addiction that affects an estimated 1.4 percent of gamblers, or 80 million
 adults globally—the researchers recommend that policymakers treat
 gambling as a public health issue rather than as a medical problem. That s
 because/ as Sparrow points out^ one gambler s problem behavior typically
 affects six to eight additional people, including family^ co-workers, friends,
 and employers.


 Rachel Volberg^ a co-author and expert on gambling at the University of
 Massachusetts Amherst, says that the gambling industry has effectively

https://www.harvardmagazine.cofn/2025/03/han/ard-research-gamb)ing-pub!ic"heafth-crisis 2/5
2/24/26, 8:38 AM Is Gambling Becoming 3 Public Health Crisis? | Harvard Magazine

 portrayed gamblings harms as the faults of individuals rather than as an
 issue of consumer protection." Jurgen Rehm, professor of public health at the
 University of Toronto and another co-author of the report, compares the
 problem to the tip of an iceberg. "You have the minority, who would qualify
 for a gambling disorder. That's about 1 percent. And then you have all of
 those who...do not necessarily qualify for the disorder but have some serious
 consequences/ like losing a family or losing even payments for a car. So, you
 ^et into trouble because of gambling even if you do not qualify for a
 diagnosis/' These are the estimated 5.5 percent of women (140 million) and
 11.9 percent of men (308.7 million) whom the report identifies as at some risk
 from gambling.




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 During three-and-a-half years of studying the problem, the Lancet- convened

 researchers—including experts in public health, gambling studies^ global
 health policy, risk control, and regulation—found that the epidemiological
 landscape is changing. Of particular concern is the rise of gambling among
 adolescents/10 percent of whom have gambled online in the past year, despite
 age restrictions. Of those/ an estimated 26 percent are at risk for disorders, a

 far higher proportion than among adults. These findings/' they write;
 'underscore the potential harmfulness of products (e.g.^ online casino or slot
 games and sports betting) that are now driving the global expansion of the
 gambling industry.

https://www.harvardmagazine.com/2025/03/harvard-research-gambling-public-health-crisis 3/5
2/24/26, 8:38 AM Is Gambling Becoming a Public Health Crisis? j Harvard Magazine

 Although four-fifths of countries worldwide permit gambling, that number
 understates the global nature of the industry s influence, since digital
 technology transcends borders. And the online environment has "enhanced
 the ability of gambling operators to capture detailed data about the
 performance of their products and the behavior of their customers/' the
 researchers write. Online gambling companies precisely target consumers
 using predictive algorithms, personalization/ and persuasive technologies,
 and train sophisticated algorithms to enhance an individual s user
 experience/ they continue. Targeted forms of marketing include capitalizing
 on sports fandom while Data on consumers are shared widely across the
 gambling ecosystem and are used to profile customer behaviors.


 In the United States, legalized gambling has spread swiftly since 2018, when
 the Supreme Court overturned a law banning online sports betting. Thirty-
 seven states and the District of Columbia have now authorized this form of
 online gambling. The industry markets its services through social media,
 aided by weil-remunerated celebrities^ athletes, and sports organizations. In

 2024, U.S. betters wagered $150 billion on sports, not just on the outcomes of
 sporting events but through minute-by-mimite bets on a dizzying array of
 statistical ephemera: whether a particular player^ for example^ will score more
 than a certain number of points by halftime even as his or her team is
 defeated. Globally,, consumers are wagering far more—and by 2028,the

 Lancet report found, are expected to lose a staggering $700 billion. Young
 people are particularly vulnerable to developing addictions to sports and
 video betting/ which are driving the surge in gambling. The executive
 director of the National Council on Problem Gambling^ Keith Whyte, said in
 late 2023 that sports betting in particular has caused the largest and fastest
 expansion of gambling in our nation s history.


 Worldwide/ the Lancet report finds, lawmakers seeking fresh tax revenue
 sources have loosened restrictions on online betting without sufficiently
 weighing the public health risks or social costs, which are regularly measured
 in billions of dollars. Numerous studies cited by the Lancet researchers link
 gambling to job loss as well as "suicide, suicidality, mental health [problems],
 anxiety, depression, family ruin^ [and] domestic violence-related crimes," says

 Sparrow. One study found that 37 percent of people experiencing a gambling
 problem have perpetrated intimate partner violence. A 2021 analysis of
 banking transactions found that a 10 percent increase in spending on

https://www. harvard magazine.com/2025/03/harvard-research-g am bling-public-health-crisis 4/5
2/24/26, 8:38 AM Is Gambling Becoming a Pubjic Health Crisis? S Harvard Magazine

 gambling increased the likelihood of missing a mortgage payment by 97. S
 percent. Said an American woman quoted in the report the financial harm is
 probably going to impact me for the next two or three^ four years...the system
 here is pretty brutal when you mess up/

 Governments can mitigate such harms through regulation: by requiring the
 establishment of accounts to limit an individuals annual losses, prohibitini
 the use of credit, and setting restrictions on advertising, marketing, and game
 features and designs. The report further recommends establishing a firewall
 between research into gambling's effects and the industry itself.


 The widespread availability of mobile and online gambling arrived in North
 America later than in Europe/ which has been at this legalized online
 gambling a lot longer says Sparrow, and therefore seen more misery. The
 data from Europe, where many countries legalized online betting before
 2010^ is robust and clear about the public health problems, including
 increased rates of depression and anxiety among those who gamble. While
 such research is still only emerging in the United States, Sparrow and his
 coauthors hope that as gambling s dangers here become clear, policymakers in
 the United States and Canada will follow their European counterparts by
 adopting belated regulatory measures. "We urge people to get there sooner/
 he says, than they might otherwise.




 a f x


 Published in the March-April 202_5 print issue under the headline Governing
 Games of Chance/ in the Right Now section.


 Read more articies by Jordan Smith ->




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2/24/26, 8:59 AM States Are Raking In Biliions From Slot Machines on Your Phone - The New York Times



 ®l}Cyctu|tork£uneSi ; https://www.nytimes.com/2025/12/08/upshot/online-casinos-states-
 iegaiization-phone.html




 Pennsylvania tax revenue from •
 Online
 casinos
 $100 mil. per month




 $75 mil.




 $50 mil.




 $25 mil.


 Sports
 betting
 a p ps


 2019 2021 2023 2025




 States Are Raking In Billions From Slot
 Machines on Your Phone
 Online casinos have proved to be a much stronger source of tax revenue than
 sports betting apps. They may be coming to a state near you.



 Listen to this article • 7:59 min Learn more




 M By Ben Blatt


 Dec. 8, 2025



 Most casinos in Las Vegas take sports bets, but that's not where the real money is.
 The bulk of their profit comes from games like slot machines and blackjack.
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2/24/26, 8:59 AM States Are Raking in Billions From Slot Machines on Your Phone - The New York Times


 Many states have legalized online sports betting in recent years, but a handful
have learned the same lesson: If the goal is to increase tax revenue, the big money
 comes from allowing a full legal casino, slot machines and all, on your phone.

 Pennsylvania is one of seven states to have done that. It legalized both online
 casino gaming and online sports betting, for ages 21 and up, in 2017.

 By last year, the state was collecting $1.05 billion in taxes from digital casinos,
 compared with $188 million from sportsbook apps. The revenue from casino games
 is significant: Pennsylvania's entire state budget is about $50 billion.

 The state taxes online slots at a higher rate, which explains some of the difference,
 But Pennsylvanians are also losing a lot more money to online casino games than
 they are on sports bets.

 Donna Buschelberger, 57, lives in Littlestown, Pa., and works as a home care
 worker. She said she had never gambled until she downloaded casino apps during
 the pandemic. In the last few years, she has lost at least $15,000 on BetMGM
 Casino, mostly playing the game Slingo, which is a fusion of bingo and slot
 machines.


 Her car was repossessed, she said, and she is facing eviction after missing rent
 payments. She is also part of a class-action lawsuit against the casinos alleging
 predatory marketing tactics, yet she was in the middle of gambling when I called
 her.


 "If they were to close down the site tomorrow, I would be mad because I couldn't
 do it, but it would be helping me in the long run " she said* (BetMGM did not
 respond to a request for comment.)

 Thirty states permit online sports betting, but only seven have legalized online
 casinos, though more may soon join in. A bill legalizing online casinos in Maine
 awaits the decision of Gov. Janet Mills, who has not signaled if she will sign it.
 Lawmakers in several other states, including Hawaii, Massachusetts, New York
 and Ohio, are also considering allowing online casino gaming.


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2/24/26, 8-.59 AM States Are Raking In Billions From Slot Machines on Your Phone - The New Yori< Times


 Big tax collections

 The seven states with legal online casinos collected a total of $2.1 billion last year
 from gambling apps, according to Legal Sports Report. Over the same period,
 online sportsbooks generated about $2.9 billion in tax revenue for the 30 states
 where they are legal.

 States with both have seen tax revenue from casino games far outpace revenue
 fromsportsbooks:


 Online casinos raise far more tax revenue than sports betting apps

 Pennsylvania Michigan
 $100 mil. per month $75 mil. per month




 $50 mii.




 $25 mil.




 2019 2021 2023 2025 2019 2021 2023 2025

 New Jersey Connecticut

 $50 mil. per month $10 mil. per month




 $25 mi $5 mil.




 2019 2021 2023 2025 2019 2021 2023 2025


 West Virginia Rhode Island
 $5 FT!!!, per month $3 mil. per month




 $2.5 ml), j /^ $1.5 ml!.



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2/24/26, 8:59 AM States Are Raksng In Billions From Slot Machines on Your Phone - The New York Times




 Source St^te goveffi^ent tax r^ppyts. Note>^ppes not inclu^.fentasy apR^Delawai^e^cluded ^^/,^.
 because of incomplete 'data.

 Edgar Gonzales Jr., a Democrat in the Illinois House of Representatives, would like
 his state to join them. Mr. Gonzales, who last year was a sponsor of a bill to legalize
 online casinos, said he would like more money for programs related to
 homelessness and education, without raising income taxes.

 He said federal spending cuts had made the case for legal online casinos more
 compelling. "It's a matter of how can we come up with our own money," he said.
 "Because we can't rely on the federal government for it"

 When New Jersey legalized online casino games in 2013, Michael Doherty, a
 Republican, was the only state senator to vote against it. He continued voting
 against anything to make gambling easier through his time in office, he said.

 Mr. Doherty said that gambling is a "negative activity that destroys a lot of lives,"
 but also that New Jersey did a poor job of setting tax rates. Pennsylvania, for
 example, imposes a tax rate of 50 percent on online slots. This year New Jersey
 raised its tax rate on online casinos to 19.75 percent, from 15 percent.

 "When you guys start collecting 50 percent of the profits from the gambling
 revenue, then, you know, wake me up," Mr. Doherty said.


 In most states, online casinos are taxed at a higher rate than sportsbooks because
 they have higher profit margins and more predictable revenue.


 The lure of slots

 Traditional slot machines were once the most common reason people called the
 problem gambling hotline run by the Council on Compulsive Gambling of
 Pennsylvania. But in the years since the state legalized online gambling, online
 casino games have become the No. 1 reason for calls, ahead of physical casinos and
 sports betting.


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2/24/26, 8:59 AM States Are Raking in Billions From Slot Machines on Your Phone - The New York Times

 Reasons for calling Pennsylvania gambling hotline, 2024


 Online casino ^y
 Slots, table games or poker on licensed online casino



 Traditional casino ^y
 Slots, table games or poker at licensed brick-and-mortar casino



 Sports betting ^y
 Sports or horse bets, placed online or in person



 Lottery ^
 Scratch-offs, number draws or online lottery play



 Unregulated ^
 Slots, table games or poker played at any unlicensed venue or site



 Trading y^
 Day trading and crypto


 Other co/fo
 Bingo, 50-50 raffles, games of skill and other games



 Source: Council on Compulsive Gambling of Pennsylvania. Note: Categories combined for clarity.
 Games of skill include slot machine-Iike games found at gas stations.



 The group's executive director, Josh Ercole, noted that many people in
 Pennsylvania live long distances from an in-person casino, but anyone can play
 online slot machines "without having to get out of bed " A spin on an app often
 takes less than two seconds, he said, while a traditional slot machine in a casino
 could take up to 15 seconds.

 Melissa Stewart, 45, from Charleston, W.Va., said as soon she got sober from drugs
 she got into gambling. She said that she had lost around $19,000 from online
 casinos, and that it had prevented her taking her child out for activities.

 Ms. Stewart, a parking enforcement attendant, says the tax revenue from online
 gambling is a money grab by the government: "They don't care if a person's
 addicted and they just keep going to keep on. They just want to get their money
 regardless"

 Despite her losses, she is still active on the apps for hours a day. "It's like I'm
 trying to win back the money that I've lost," she said, "I do it at home, at work,
 everywhere"
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2/24/26, 8:59 AM States Are Raking In BiSllons From Slot Machines on Your Phone - The New York Times


 Different incentives

 Expanding online casinos to more states could be a boon not just for those
 governments, but also for large casino companies. DraftKings and FanDuel, for
 example, built their brands on fantasy sports and sports betting, but their casino
 apps generate roughly four times the profit of their flagship sports apps in states
 where both are legal, according to tax records. Those companies declined to
 disclose user numbers for their respective casino apps.

 On sportsbook apps, many betters wait hours or days for a game. In casino apps,
 gamblers can spin slot machines again and again. About half as much money is bet
 on sports in July than in September because there are fewer major sports events in
 July (and no football). Online casinos don't have this issue, with little variation in
 activity through the year.

 In Pennsylvania, the state collected more tax revenue from online casinos than
 physical lottery tickets for the first time last fiscal year.

 Marcus Simon, a Democratic delegate in Virginia's General Assembly, is
 cosponsoring legislation to legalize online casinos. Gambling is everywhere
 already, he said, with offshore betting and other ways to skirt state bans, so it's
 better to legalize and regulate it, adding consumer protections and ways to detect
 problem gambling.

 "I think on balance folks that want to do this are finding ways to do it," he said.

 Scott Moore, 45, a pet sitter in Bryn Mawr, Pa., says he gambles through eight
 licensed casinos in the state but also bets with about 40 sweepstakes casinos, sites
 that operate in a legal gray area and send no tax money to the state.

 His FanDuel Casino app lists a total loss of almost $4,000, but he said a single
 $10,000 win from a 20-cent spin on "Red Hot Joker Cash Eruption" on the Golden
 Nugget app has made him profitable overall.

 <(I will play while I watch TV," Mr, Moore said. "I definitely play while I walk a dog
 or when house sitting. I play to kill time."
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2/24/26, 8:59 AM States Are Raking In BNIions From Slot Machines on Your Phone - The New York Times


 Michigan legalized online casinos and sports betting in 2019 with near unanimous
 bipartisan support in the Legislature and from Gov. Gretchen Whitmer. Ed
 McBroom, a Republican, was one of just three state senators who voted against the
 bill.

 Mn McBroom said the state's collection of tax money from gambling creates a
 conflict of interest, incentivizing the government to get citizens to gamble more.
 But he said gambling in Michigan and the United States was still in its
 expansionary stage.

 "I don't see it changing anytime soon," he said. "I'm clearly in the minority"

 Ben Blatt is a reporter for The Upshot specializing in data-driven journalism.



 Aversion of this article appears in print on , Section A, Page 1 of the New York edition with the headline: States Raking In Billions From
 the Slot Machines on Your Phone




https://www.nytimes.com/2025/12/08/upshot/online-casinos-states-leg3lization-phone.html 7/7