Bloomington to consider loosening video gambling ordinances

BLOOMINGTON — Patrick Whitaker, an owner of Shake It Up Cocktail Lounge and Eatery, has made multiple appearances before the Bloomington City Council in the last year regarding video gambling restrictions.

He told The Pantagraph last year that because there are opportunities for video gambling on every block of downtown Bloomington, it often deters customers from entering businesses like his that lack the gambling machines.

“(Customers) go in to gamble and then at the same time, they’re still going to drink and they’re going to eat and they’ll come back,” Whitaker said. “So it’s not that gaming is the only reason why they’re coming in.”

Despite applying for a gaming license after opening in 2022, Shake It Up is one of dozen businesses prevented from adding gambling machines as a supplemental revenue stream. This is because of a cap on the number of gaming establishments that can operate within Bloomington, which many residents and business owners have said they would like to see lifted.

During a non-voting session on Monday, the Bloomington City Council discussed several options that could take local businesses off the wait list for gambling machines. This includes eliminating the cap on the number of business, lifting the cap from 60 to 72 or switching to a system that is contingent on the number of gaming terminals as opposed to the number of businesses.

Whitaker previously told The Pantagraph he can understand the stance of not wanting more gambling parlors in the city, or not having an abundance of gambling terminals in low-income areas of the city, but there are times where he doesn’t pay himself, in order to ensure that things at Shake It Up are running smoothly.’ 

“We grind tooth and nail every week,” Whitaker said last winter.

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Establishments wishing to operate video gaming machines in Bloomington must obtain a City Video Gaming License. Licensed establishments may operate no more than five video gambling terminals at once.

Applicants must have been in business at the location for at least 12 months or prove they are operating a similar business that has experience managing video gambling and be in good standing with the city and state.

The only other way to obtain a license beyond the cap is through an approved development agreement, which could allow businesses that aren’t locally owned to be granted a shortcut to video gambling, while local businesses must wait for the opportunity.

Alderman Cody Henricks said Monday he takes issue with economic development agreements that can circumvent code requirements, especially if the city wants to say it supports local businesses. 

As of Monday, the City of Bloomington has 60 businesses operating gambling terminals and another 12 are on a wait list to be granted permission to use them.

Matt Streenz, co-owner of Times Past Inn, said earlier this year that video gambling machines have been very beneficial for him, and it’s nice to have the additional revenue from them.

“I think it’s one of those things to where there are a lot of places that need to rely on it,” Streenz said.

During public comments at Monday’s meeting, Patrick Whitaker’s wife, Jill, who co-owns Shake It Up, said their business’ risk of failure is very high when compared to their competitors who have gambling machines.

“The average bar or restaurant that has video gaming that are our competitors makes an extra $10,000 a month,” Jill Whitaker said. “Five to seven days a week open, that’d be $20,000 (a month).”

Although there is an annual review process to determine whether businesses with gaming machines are code compliant, Alderwoman Sheila Montney said she would like to see audits conducted.

“That’s on us to force the expectations,” Montney said Monday. “I would like to see that done and it not be something we just do ad hoc.”

In 2024, Bloomington’s share of net terminal income from all of its gaming establishments was about $1.3 million, according to city documents.

As the city brings a potential action item forward on video gaming, Mayor Dan Brady advised council members to remember that when the number of licenses increase, businesses operating with gambling machines will receive less revenue since there will be more opportunities to play.