Illinois state Senator Donne Trotter recently discussed options for raising .4 billion in revenue to close the state’s budget gap, including raising income taxes, charging sales tax on certain state services, ending some corporate tax breaks and taxing high-sugar drinks. “Also on the table is that old standby of looking at the possibility to expand gaming here in the state of Illinois,” Trotter said.
Governor Bruce Rauner recently stated, “I’m not a fan of gaming. I think it is a tax on people who cannot afford the tax. It’s here. It ain’t going away. I’m supportive of a grand bargain, and that could be inclusive of a lot of things.” Rauner’s predecessor, Pat Quinn, vetoed expanded gambling bills twice.
Trotter noted the same two proposals still are available. One would create a large casino in the city of Chicago. The other would allow a casino in Chicago plus the south suburbs, Rockford, Lake County and Danville, and also allow slots at horse racetracks. But he emphasized “these are just ideas being thrown out there to the leaders. There has been no sitting down saying we’re going to take this tax. We were in the same situation last year. I think everything needs to be discussed. That is a potential revenue source. It always has been.”
State Rep. Robert Rita, who sponsored the two gaming expansion measures, said, “At any point it could be revived. It’s in a position that we can if there were to be a budget deal. As we go longer without a budget, it could be an attraction. Will it solve the complete problem? No, but it could be part of the additional revenue that’s needed.”
State Senator Dave Syverson pointed out, “Gaming makes sense, and it really needs to be part of the final package. If we don’t have it as part of the final package, we’re still going to have a hole that needs to be addressed.” He added, “Chicago needs a bailout, and there’s no way that the state’s going to give them that bailout. We already give them a disproportionate amount of money as it is. A casino would clearly help them.”
Syverson also noted revenue from other Illinois casinos would help the state make bond payments on the most recent approved capital bill. In addition, a Chicago casino would help keep in Illinois the $1.5 billion in gaming revenue residents spend in casinos in neighboring states.
The amount of revenue expanded gaming would generate is open to question. The legislature’s Commission on Government Forecasting and Accountability stated in its annual report on wagering in Illinois, a figure “is extremely difficult to predict due to the numerous variables that have an impact on these projections. COGFA said expanded gambling must be accompanied by more gamblers. Otherwise, the report said, “the state could have a large expansion of gambling, but yet have little new tax revenues to show for it.”
Illinois Casino Gaming Association Executive Director Tom Swoik noted, “Our revenues are going down. We’re not creating any new gamblers. All you do is shift the money around, move it from one venue to another. We’re totally saturated.”
Swoik added the nearly 24,000 video gaming terminals throughout the state equal nearly 20 casinos, based on gaming positions. “We think any more expansion with video gaming is ridiculous,” he said.
