Two companies that own gambling parlor sued the state over profit-sharing regulations.
US.- Two companies that own video gambling parlors sued Illinois state because they believe that they have a right to negotiate their profit-sharing deals. They said that if the current regulations didn’t exist, they would be able to double their businesses.
As the Chicago Tribune reported, the lawsuit that was filed in the Cook County Circuit Court by officials from the Dotty’s Cafe, Stella’s Place and Shelby’s gambling parlor chains, also establishes that they want to change the clause that requires them to evenly split their profits with the companies that operate those video terminals. The lawsuit is seeking the cancellation of the current provisions to change them for a free environment to negotiate a new profit-sharing deal, as well as allowing bars and restaurants to buy and feature their own machines. “The amount in profits the Video Gaming Act divvies out to each party is not rationally related to the contributions or investments each party may make toward the business or the amount each party has at risk,” the lawsuit says.
The operators said that if they didn’t have to share that percentage of profits, they would be able to expand their businesses and help the state get more revenue. “I can think of no other industry where, by law, a business is forced to give up 50 percent of their profits and is strictly prohibited from even trying to negotiate better terms,” said Winston & Strawn lawyer Dan Webb.
The legal measure also says that terminal operators are not entrusted to perform system upgrades without oversight, nor can they independently make any repairs to a terminal’s internal mechanisms. Whilst the Illinois Gaming Board is required to be involved in any repairs, officials declined to make any comments.