As the end of this legislative session nears, Illinois lawmakers could legalize sports betting this spring as part of a larger gambling expansion deal that also includes new casino licenses and expanded betting options at horse tracks. Stakeholders in the suburbs of Chicago that have been advocating for gambling expansion for almost a decade were present Thursday to deliver their testimony before a House executive committee on gambling expansion centered on legislation that failed to clear committee in the previous General Assembly of Illinois.
The Illinois House Executive Committee recently held a hearing on an expanded gambling bill that would have added six casino licenses to the state’s current 10, in Rockford, Danville, downtown Chicago, southern Cook County, Lake County and Williamson County. The measure failed to clear committee in the previous legislative session but could provide the basis for this year’s bill which has not yet been filed. Speakers included local governments that want a casino in their community, private firms that would build or operate those casinos and racetracks desiring to become racinos.
Supporting city leaders’ recent full-page ads in Chicago newspapers urging Mayor-elect Lori Lightfoot to join the battle for new casino licenses, Rockford Mayor Tom McNamara said, “We’re not competing for casinos. We should be working together. There are five communities that I believe deserve a casino. Chicago is one of them and Rockford is another. I believe we have a stronger chance to move this forward and finally get the state legislature to act if we work collaboratively.” He added if a proposed casino in nearby Beloit, Wisconsin is built before Illinois can pass the legislation, “it would virtually eliminate the opportunity for Rockford to pursue our own casino. Illinois residents would bypass our community and our state and take their dollars to Wisconsin.” City leaders recently placed a full-page ad in both the Chicago Tribune and the Chicago Sun-Times, asking Mayor-elect Lori Lightfoot to join the fight for legislation to create a number of new licenses around the state.
Waukegan Mayor Sam Cunningham said his city is “ready to transform with the addition of a casino to Lake County. Waukegan is ready to take its vibrant history shaped by Lake Michigan lakefront, our rich arts and music community, our population of 100,000 and our location as the county seat of Lake County. It is ready to add a casino to that great history.” Cunningham said the 32-acre site the city purchased in 2003 is “shovel-ready.”
Lobbyist Derek Blaida, representing Chicago, repeated the call for a city-owned downtown casino to be overseen by the Chicago Casino Development Authority but managed by a private casino operator. Blaida said if the city cannot get a casino with a retail sportsbook, it would not support a sports betting bill. “The city of Chicago supports sports wagering and the legalization of it within a comprehensive amendment that provides for a publicly owned Chicago casino license,” Blaida said.
FanDuel already is eyeing Chicago as a possible Midwest headquarters with 300 new jobs. FanDuel Chief Executive Officer Matt King said, “Chicago is definitely a growing and really cool tech environment to be a part of. So as we thought about where we could scale, we thought Chicago made a ton of sense. It gives us a Midwest headquarters to service surrounding states.”
Williamson County Board Chairman Ron Ellis noted eight of the state’s 10 most impoverished counties are in the “deep south.” He said a casino proposed at Walker’s Bluff, a vineyard in Carterville, could attract visitors from the 4 million-plus people who live within 250 miles of the county, as well as create 1,200 construction jobs and 700 permanent jobs. “That’s a huge economic boom,” Ellis said.
Vermilion County Board Chairman Larry Baughn promoted a casino in Danville. “We’ve been talking about adding a casino here for 28 years. At the end of the day, it’s all about job and revenue creation. We desperately need the jobs,” he said.
A sixth casino, which would be coupled with a standard-bred harness horseracing track, already is underway in southern Cook County. The state’s two standard-bred harness tracks—Balmoral and Maywood—both closed within the past four years. “The harness racing industry has been pretty much decimated,” said Rick Heidner whose company, Heidner Properties, would build the new racino and hotel complex.
Former state lawmaker and racetrack lobbyist Bob Molaro said, “If we’re going to survive, we need the gaming expansion bill. And actually, to be quite honest, as horsemen are leaving in droves, we need it now. We do need it in the next four, five weeks. It cannot be put off if we really want to save this industry.”
But Arlington Park President Tony Petrillo stated he’d like to see lawmakers focus on passing sports betting legislation first. He said trying to satisfy too many interests in a comprehensive gambling bill might leave racetracks with the same outcome as last year–nothing. “While sports betting is not the answer to our overall problems, we feel it can reach and expand our customer base until those big gaming issues are worked out,” Petrillo said.
The Illinois Casino Gaming Association, which represents nine of Illinois’ 10 casinos, strongly opposes adding more casinos or allowing racinos. ICGA Executive Director Tom Swoik testified allowing too many casinos in the state would dilute the market, decreasing revenues for all. The state’s casinos already are experiencing revenue decreases from video gambling at bars, restaurants and truck stops. “Saturation and cannibalization are not abstract talking points. They are real economic concepts, and they are affecting the brick-and-mortar casino industry.”
State revenue from casinos has declined 20 percent since 2012 when casino revenue peaked at $476 million and video gambling machines went live in Illinois, according to Illinois Gaming Board data. The number of people visiting casinos fell 32 percent over that same time.
Governor J.B. Pritzker’s proposed budget, which starts July 1, includes $200 million in sports betting revenue. His spokeswoman Jordan Abudayyeh said, “The governor has made clear that he is committed to responsibly legalizing sports betting so that Illinois doesn’t lose out on revenue from this newly authorized market, especially as other states move forward. Additionally, as discussions with working groups continue, the administration looks forward to reviewing other gaming measures that increase revenue for the state this legislative session.”
State Rep. Mike Zalewski is leading sports betting negotiations in the House. “We will try our best to get everyone aligned on a vision,” he said, adding he plans to file a revised standalone sports betting bill very soon. State Rep. Bob Rita is leading gambling expansion negotiations.
