Tuesday, August 28, 2012
Mayor Tom Weisner Looks the Other Way on Illegal Video Gambling in Aurora, But Wants Political Mafia to Have a Cut of Revenue and Everyone to Drink Alcohol
Since 2005, Aurora Mayor Tom Weisner has knowingly and intentionally looked the other way on various clubs, establishments and entities in the city having video gaming (gambling) machines in operation.
A representative of one of those clubs, who asked not to identify the location, said "the mayor comes to drink here as do lots of city officials, even cops and politicians. Of course, they know what's going on."
When the State of Illinois passed legislation to make it lawful and regulate entities to install video gambling machines, it left it up to municipalities and unincorporated areas of counties to decide on their own whether to introduce it.
In Aurora, it's been going on all along. Now, the only difference is that the political mafia and government will get a cut of it.
But, why has it been going on in Aurora without any interference from the city?
The club representative said "you'll have to ask the mayor, but well, we take care of them."
Aurora wants to give entities with liquor licenses an opportunity to get up to 5 machines. So, what happens if an ice cream place or Jamba Juice wants to have the machines?
Sorry, no video gaming machines for you. Alcohol is required to be mixed with gambling and government.
(we pause our story for a moment so Weisner can refill his drink...he'll have another tall one)
Meanwhile, the city's finance head, Brian Caputo, who has rubber-stamped all kinds of financial projections in recent years as he mumbles "hocus-pocus" before presenting them, says Aurora will get over $550,000 per year in revenue by regulating video gaming units.
OneMan breaksdown the numbers...
Lets run some numbers...
5% of the revenue will go to the city. So for the city to get $555,000 a year there would have to be $11,000,000 in revenue from video gaming in the city (555,000 is 5% of $11,000,000)
Keep in mind $11,000,000 is a revenue number, so lets figure out what the gross betting would need to be.
Assuming a 90% payoff (the state minimum is 80% so I am going to go into the middle), this is a bit below the rate for most Illinois casinos in terms of slot machines (at least using those numbers)
So $11,000,000 is 10%, the other 90% is returned to players as winnings. So to get a $11,000,000 revenue you have to $110,000,000 million 'played' a year or $301,3770 a day 365 days a year.
So this is where things get even more interesting in my opinion. Lets assume the average bet is $.25 so to get to $110,000,000 in play you would have to have 440,000,000 plays a year, that's right a bit short of half a billion video poker plays.
Or assume that each facility is open for gaming 18 hours a day, 365 days a year or 394,200 minutes a year, so divide 440,000,000 by 394,200 you get 1,116 plays every minute of for 18 hours a day 365 days a year.
A skilled player, playing fast appears to be able to play about 80 hands a minute, a normal person lets say a hand every 3 seconds (a guess but a rational one) so about 20 a minute.
$110,000,000 by 394,200 or every minute $279.05 would have to be bet, 18 hours a day, 365 days a year.
Let's just use the $11,000,000 number (revenue) and 127,575 (the number of people in town 21 and older from to 2010 census) video poker has to take $86.22 from every adult in town for the city to get it's $550,000
Finally lets use the gross number $110,000,000 and 127,575 with you have to have $862.23 bet by every adult in town.
You planning to put $862.23 in a video poker in town, because I know I am not...
NOTE: The Aurora City Council will consider video gaming tonight at 6pm at City Hall.