On May 11, Illinois state Rep. Bob Rita held the second of two hearings regarding gambling in the Chicago area. In three hours of testimony, tourism experts from Choose Chicago, the Chicagoland Chamber of Commerce, hotels and associations said a casino in or near downtown could capitalize on existing resources, boost economic development and generate revenue.
However, Illinois Casino Gaming Association Executive Director Tom Swoik noted the Chicago-area market already includes five casinos and an ever-increasing number of video gambling machines at bars and restaurants. “We believe that the market is saturated. We’ve seen money being shifted around. Yes, their overall revenues for video gaming and casino gaming have gone up from the last couple years. But our revenues have gone down significantly,” Swoik said. Other opponents noted the social costs of gambling, including addiction and crime.
Rita has proposed two separate gambling measures HB 2939 would allow a state-owned mega-casino in Chicago that would split revenue evenly between the city and the state. HB 3564 would allow four suburban casinos and a smaller one in Chicago, also with shared revenue. Chicago Mayor Rahm Emanuel has been promoting a city-owned casino so Chicago could keep most of the profits, minus state taxes, to help cover the city’s soaring pension costs which will rise to $600 million in payments next year.
The state, considered the worst state in the nation in terms of bond ratings and pension debt, has its own problems. While legislators work to close a budget gap of about $6 billion before May 31, the pressure is especially intense because the Illinois Supreme Court recently ruled a 2013 law to overhaul the state’s pension system was unconstitutional. It has an unfunded liability of more than $100 billion.
“Revenue is more of a need today than it was last week. Here’s an area that we could generate revenue. It’s just a matter of how do we get there and what model do we use,” Rita said.
Proponents believe gambling legislation has its best chance of passing this year. Democratic former Governor Pat Quinn vetoed gambling expansion bills twice, but Republican Governor Bruce Rauner has said he’s open to more casinos. Rauner also replaced Quinn’s the head of the Illinois Gaming Board who had actively undermined previous gambling proposals.
In the state Senate, state Senator Terry Link said he has been working with legislative leaders, Emanuel and Rauner to draft a proposal that Rauner would be willing to sign. “You have a different governor who has different viewpoints of something, so I think that’s playing into the scenario. In the past we tried to get things in there that Governor Quinn would be for. Now we’ve got to get things in there that Governor Rauner will be pleased with,” Link said.
Link’s legislation for a Chicago-owned casino also would include slots at horse racetracks. Track owners said purses and betting are decreasing, and horse owners are leaving Illinois tracks for venues in Indiana, Iowa, Ohio and other nearby states that also offer casinos. Glen Berman, executive director of the Illinois Thoroughbred Horsemen’s Association, said, “We’re the third biggest market in the country, and we’re getting beat out by Indiana, Iowa, Arkansas and Minnesota. It just shouldn’t be.”
