Illinois video gambling parlors must continue to evenly split their profits with companies that operate the terminals, a Cook County judge has ruled.
The two companies that own the Dotty’s Cafe, Stella’s Place and Shelby’s gambling parlor chains filed a lawsuit in April against the Illinois Gaming Board and several terminal operators, arguing that gambling parlors and the terminal operators should be able to negotiate their own profit-sharing deals. Additionally, retail establishments should be able to buy, install and maintain their own machines, they said.
Cook County Judge Neil H. Cohen ruled last week that splitting profits equally prevents terminal operators from offering incentives to gambling establishments.
Allowing gambling parlors to both host and service the terminals could reduce customers’ confidence in the establishments, Cohen wrote in his ruling.
“This total control and regular, observed access to the inner workings of the terminals could lead the public to believe that (the parlors) were rigging the terminals,” he wrote.
Laredo Hospitality Ventures and Illinois Cafe & Services Co., the companies that brought the suit, argued that not being able to maintain their own machines could result in lost customers and revenue. According to their amended complaint, if a dollar bill is jammed in a machine, an employee at one of the gambling parlors cannot clear it themselves. They have to call its terminal operator and wait for a technician, which could leave the machine out of service for days, according to the complaint.
Combined, the two companies own and operate more than 100 Illinois video gambling parlors in 21 counties, employing about 500 workers, according to their lawsuit.
An attorney representing Laredo and Illinois Cafe said the companies planned to appeal.
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