The Illinois General Assembly’s Commission on Government Forecasting and Accountability recently issued its annual report, showing state taxes from all forms of gambling dropped 5.8 percent in the 2015 fiscal year ending June 30. Both riverboat casino and lottery revenue declined—the lottery for the first time since 2009, leading to the state’s termination of its contract with private lottery manager Northstar. Horseracing revenue was flat. Only video gaming revenue grew—but not by enough to balance losses in other gambling areas.
The report stated, “The landscape of gaming in Illinois is in the midst of change. The rapid expansion of video gaming throughout the state is providing Illinois residents more gambling options than they have ever had before. But despite the addition of these new gaming opportunities, for the first time in four years state revenues from gaming-related sources in Illinois experienced a decrease in the amount collected.”
Tom Swoik, executive director of the Illinois Casino Gaming Association, said, “I think the report shows we are saturated in Illinois. What you’re seeing going on is cannibalization from the other forms of gaming into video gaming. It’s just moving around the dollars. We’re not creating any more gamblers.”
Despite the drop in casino revenue, the COGFA report supported gaming expansion, noting, “The amount of revenue that could be generated by gaming expansion could be significant. ” But, the report stated, an actual amount would depend on tax rates, the number of new gaming positions and the location of new casinos. “The latter is especially of interest to the current riverboat casinos because, as the Des Plaines casino and video gaming has proved, new gaming facilities will likely have a substantial cannibalization effect on existing facilities,” the report said. However, it also said gambling expansion would provide “a significant amount of one-time revenues from fees and bidding, creating new jobs and potentially regaining/gaining gaming dollars from out-of-state gamers.”
State Rep. Bob Rita, who has sponsored several gambling expansion bills, said, “I’m a believer in using the expansion to bring more dollars, to create more jobs for the state. Video gaming success shows that an expansion, if it happens, it could be successful. But we do need to do this in a smart way. I do believe it would generate additional revenue.” Still on the table before legislators is a measure calling for a mega-casino in Chicago, and another including casinos in Rockford, Danville, Lake County and the south suburbs, plus Chicago, as well as slots at horse racetracks.
Governor Bruce Rauner has not ruled out expanding gambling in the state as a means to additional revenue. Rauner spokeswoman Catherine Kelly said, “The governor wants to ensure that if a gaming bill passes, it is a good deal for all Illinois taxpayers and believes decisions on gambling should be done in close consultation with local communities.”
