Palatine reviews two-and-a-half-year results of video gaming: village reports roughly $470,000 returned locally

Village officials and licensed operators discussed the local effects of video gaming during the April 14 committee meeting as the council continues a multiweek review of businesses that hold the licenses.

A village staff speaker summarized revenue shares under state statute and reported cumulative totals since August 2022. “When I look at where they go … the terminal operators and the establishments cumulatively have made about $3,000,000, the state $2,700,000 and the village $470,000 since August of 2022,” the staff member said, describing the statutory split as roughly 33 percent to establishments, 33 percent to terminal operators, 29 percent to the state and 5 percent to the municipality.

Staff told the committee the village is using gaming revenue to help fund a newly created Community Engagement and Planning Division in the police department. The speaker said the division represents a $2.3 million program with about $400,000 in new personnel costs and that gaming funds provide roughly $200,000 a year — not enough to fully cover the new division but a recurring local revenue contribution.

Three licensees who volunteered to present their experience reported reinvestments and operational impacts:

- Neil Jolcover, owner of Gators, said the business came online in February 2023 and has invested in equipment and outdoor amenities. Jolcover said the establishment has spent about $50,000 over two years on items including new seating (about $8,300 installed), kitchen replacements and improved patio infrastructure. "We've put about 25% of what we've gotten from the video gaming back in," he said.

- Brian Schnell, owner of Schnell’s and the Donkey Inn, said Schnell’s used proceeds to replace signage, buy two new air-conditioning units and replace indoor seating. Schnell reported that he recently purchased the building that houses Schnell’s and plans further exterior and interior improvements.

- The Donkey Inn described roof, fence and driveway repairs and said owners are considering a permanent covered patio and other long-term improvements.

Owners and staff said they have not seen the video gaming pull regular dining customers away; rather, several described customers staying longer or spending more time on-site. Council members and staff framed the program as a locally generated revenue stream that has enabled some capital and operational investments at establishments and contributed to village services.

The council will continue the review, hearing from more licensees over the next weeks and returning in June or July for a broader follow-up discussion of lessons learned and potential ordinance adjustments.

Why it matters: The village receives a small but recurring share of video gaming revenue that can be used for municipal programs; the council is assessing whether the program’s local benefits, investments by owners and regulatory approach merit changes to licensing or geographic limits.