Just before the Christmas holiday season, Chicago Mayor Rahm Emanuel was forced to release private emails as a result of a lawsuit by the Better Government Association. In a May 5, 2015 email to Illinois Senate President John Cullerton, former Illinois Lottery Director Michael Jones suggested establishing a city lottery and related sports betting. Jones estimated the games could draw 0 million or more per year to help the city’s enormous pension costs. Jones wrote, “A city of Chicago lottery could be producing significant revenue by fiscal year 2016. Chicago generates over billion a year in illegal sports betting, with profits going to illegal interests. This creates an opportunity to legalize, regulate and generate revenue from sports betting as a test, similar to the legalization of the numbers game in the late 1970s.”
Cullerton forwarded Jones’ email to Emanuel, who sent it to top aides including Deputy Mayor Steve Koch and Chicago Public Schools Chief Executive Officer Forrest Claypool. However, a spokesman for the city said officials expressed doubt that the lottery could generate as much money as Jones estimated. The spokesman noted, “The mayor is always on the lookout for new ideas and creative solutions, and the decisions he’s made over the past several years have shored up the city’s finances. Any idea that will increase revenue while holding the line on taxes has appeal, but this particular idea is not being pursued at this time.”
Cullerton’s spokesman said after checking with the city, no legislation authorizing a city lottery and sports betting was filed. Beyond the Senate, the House and Governor Bruce Rauner also would have to approve a lottery plan. However, the spokesman added, “It seemed like an interesting idea, and the Senate president tries to keep an open eye and open mind for new ideas that might help address the financial problems.”
Jones said he was motivated to send the memo to Cullerton soon after he stepped down as head of the state lottery. He said European-based gambling companies approached him about expanding their operations in the U.S., and he was intrigued because gambling here has a narrow focus and, unlike the rest of the world, it’s too focused on lower-income groups. Jones said a Chicago lottery could bring more business to the state lottery. A city lottery, possibly managed by a private company, “is a great way to raise revenue without taxes,” he said.
Another idea, Jones said, would be to sell the lottery in restaurants, where customers who pay with a credit card could add $1 or $2 to purchase a lottery ticket.
Jones stated currently less than 10 percent of people who could play actually do, leaving an enormous underground market for illegal gambling. “All of these ideas are worth exploring. We’re potentially appealing to a much larger group. It’s better public policy,” he said.
