This is a video gambling machine.
Across the U.S., you’ll find more than a
100,000 of them offering up electronic versions
of games like poker or slots.
The machines — designed to be highly entertaining
and addictive — have taken the gambling
industry by storm.
23 states have them in state-sponsored casinos
or other gambling establishments, and now,
more states are considering legalizing them
outside casinos — in places like bars and
restaurants.
But, why?
We looked at the state with the most locations
to legally place a bet in America.
No, not Nevada.
Illinois.
People love gambling.
This has been true for centuries...across
cultures.
And in the US — it’s also been a source
of government revenue.
When the colonies needed to build hundreds
of schools in the 18th century — they got
funding from some of America’s first lotteries.
The Washington Monument?
Also funded in part by lotteries.
And when the Great Depression hit, Nevada
legalized gambling.
States across the country continue to count
on it to bail them out of tough financial situations.
Take Illinois.
In 2009, the state passed the Video Gaming
Act, its largest gambling expansion since
the creation of the state lottery in the '70s.
The law paved the way for video gambling machines
to go into truck stops, restaurants — even
hair salons.
Today, more than 30,000 of these machines
operate outside of casinos in Illinois — more
than any other state in the country.
The problem is — the machines can be highly
addictive.
The algorithm-driven machines are essentially
made to do three things: accelerate play,
extend the time people play them, and increase
the amount of money they wager.
For example — on old-fashioned slots, you
pulled a lever that spun physical reels.
Each reel had a certain number of symbols
and blank spaces on them, and depending on
where they landed, if the symbols lined up across this payline, you’d win a jackpot.
But with electronic machines — while you may
see virtual reels spinning, the symbol that the
reels land on is no longer determined by the
pull of a lever. It’s decided by an algorithm
the moment you click play.
The reels can be programmed to have more losing
symbols and fewer winning ones, so game designers
can reduce the odds of hitting a jackpot.
They could make a machine with over 500 stops
on the reels,
meaning the odds of winning would be less than
1 in 100 million.
The virtual display also creates deceptive
tricks like the “near miss”, when jackpot
symbols appear right above or below the winning
line — it’s an image that can make
players think they were so close to winning
the jackpot and it's designed to keep them going.
These characteristics have earned the machines
nicknames like “electronic morphine” and
“the crack cocaine of gambling.”
About a decade ago, Illinois made these machines widely accessible across
the state.
“The economy still reeling from a recession.”
“This is a financial crisis-led recession.”
“The worst recession since the 1930s.”
During the financial crisis in 2009, Illinois
wanted money to help fund a big infrastructure
program that would create jobs.
“We know our economy needs a boost, our
economy in our country, our economy in our state."
So, tucked inside a larger bill, the state
passed the Video Gaming Act.
They agreed to expand gambling in the hope that
the revenue from video gaming taxes would
help pay off their debts.
The state started borrowing money, assuming
it could pay much of it back through taxes
from video gambling.
But here’s the thing: It took more than
three years to get video gambling up and running.
By the time video gambling went live, in September
2012, the state had already borrowed more
than $5 billion.
Debt payments had reached about $340 million
a year.
While the machines were supposed to raise
$300 million a year to cover those debt payments,
in 2012, video gambling brought in just $31
million.
A decade later, the industry has finally started
hitting revenue projections.
But the Illinois Gaming Board,  the agency
tasked with keeping gambling in check, is
largely underfunded and has struggled to regulate
the growing industry.
A small group of gambling companies has made
nearly 2 billion dollars.
And politicians have received hundreds of
thousands of dollars in contributions from
an industry group.
Meanwhile, in rural areas and small towns
hit hardest by the state’s economic slump,
gambling addiction has become a serious problem.
But the state now spends less on addiction
services than it did before legalizing video
poker and slots.
What’s happened in Illinois could be a sign
of what’s to come in the rest of the country.
A 2018 Supreme Court decision legalized sports
betting, paving the way for a new frontier
for gambling in the US.
As more states look to gambling as a possible
way to stabilize their finances, Illinois’
experience with video gambling stands as a
cautionary tale.
That maybe, it’s a risky bet.
Thanks for watching. This video was produced in collaboration with ProPublica Illinois,
a nonprofit newsroom headquartered in Chicago
that's dedicated to investigative journalism 
with moral force.
If you want more of their reporting, check out the link below to sign up for their newsletter.
And if you want to know more about video gambling, check out their feature piece. Thanks.
