The Illinois House Executive Committee recently considered state Rep. Bob Rita’s proposed amendment to Senate Bill 1739, which includes two options for expanded gambling in the state. The panel did not act on either proposal but is expected to move one of them to the full House in the near future.
The proposal considered to have the best chance for approval would authorize a single, state-owned Chicago casino, with proceeds split 50/50 between the city and state. The casino would have up to 10,000 betting positions, equal to all eight Illinois casinos combined, making it the largest casino in the world. Under Rita’s proposal, the Illinois Gaming Board, not City Hall, would select the casino operating company and all casino operations would be subject to review by the board. These are concessions to Quinn who in 2012 vetoed an expanded gambling bill that he said did not include enough ethics safeguards. “I addressed everything” Quinn wanted, Rita said, adding “everyone in the state would benefit” because half the proceeds would go to the state treasury.
Rita’s second proposal would allow a smaller, 4,000-position Chicago casino plus four other 1,200-position casinos in southern Cook County, Lake County, Winnebago County and Vermilion County. The measure also would permit slots at most horseracing tracks and guarantee horsemen a percentage of casino proceeds.
Neither Quinn nor Chicago Mayor Rahm Emanuel has commented on Rita’s proposals. But the state is seeking revenue sources because a temporary tax hike will expire in January, and Emanuel is promoting a property tax increase to support the city’s struggling pension systems. “I’m still trying to look at this in a positive light. If the governor or the mayor had any objections, I think they would have voiced them by now. But we need to know which way they want to go, if they want casino expansion to pass this spring,” Rita said.
Representatives for the state’s 10 existing casinos oppose both of Rita’s proposals. They said their business already has taken a hit from legal video gambling in bars, restaurants, truck stops and fraternal organizations.
Illinois horseracing interests also oppose the portion of one of Rita’s amendments that would allow racetracks to install slot machines, although the additional gambling revenue would provide a financial boost to the struggling horseracing industry. At issue is Rita’s bill calls for Cook County tracks to have 600 slots, and tracks outside the county could have 450. Previously Cook County tracks would have been allowed 1,200 slots with 900 at other tracks.
Glenn Berman of the Illinois Thoroughbred Horsemen’s Association said anything less than what was included in past versions of a gambling expansion bill was unacceptable. The group also objects to the exclusion of slots at the Fairmount Park racetrack. The Casino Queen and the city of East St. Louis, which receives about 40 percent of its revenue from casino taxes, have said slots at Fairmount Park would hurt them.
Lanny Brooks, executive director of the Illinois Horseman’s Benevolent and Protective Association, called the bill “blatantly unfair” and “political extortion.” He said East St. Louis and the Casino Queen “fear that a few slots with no table games at Fairmount might hurt their bottom line. There’s no empirical evidence to that concern.” State Rep. Dwight Kay said he and other House Republicans will not support that aspect of the proposed legislation. “I’m not sure if this bill will stand constitutional muster if it’s passed. That’s my opinion,” Kay said.
Also in Illinois, the nation’s first state lottery app, launched in January, has had about 128,000 downloads so far, generating $813,000 in sales. Illinois Lottery Director Michael Jones has had to contend with anti-gambling activists who said the app makes playing the lottery too easy, and convenience store owners who said the app keeps people out of their establishments. Jones said special software stops excessive online ticket buying; also, online players might want to try other lottery games such as scratch-off tickets when they stop at convenience stores. “This is a significant opportunity to broaden the lottery’s player base,” Jones said.
Online lottery sales were allowed by the 2009 law that also legalized video gambling. Proceeds go toward a statewide construction program.
The app, created by Northstar Lottery Group, which manages the Illinois Lottery, allows players to buy tickets for Mega Millions and Powerball and quickly check winning numbers. The app is free but a minimum purchase is $5. Users must create an account and link it to their credit card, which lottery officials say is a way to ensure that people younger than 18 aren’t playing. In addition, purchases are limited to $150 a day, $1,050 a week and $3,500 a month.
Jones said lottery officials actually have more control online or through the app to limit excessive ticket buying. He said, “Right now, we can do very little about people who go into the store and purchase tickets. They can buy as many tickets as they want. Over the internet, for the first time ever, we have the ability to actually know how many tickets someone is buying and to stop them from buying more.”
Illinois legislators also may soon consider a measure to create a video gaming exclusion list that would keep problem gamblers away from the 16,000-plus video gaming terminals at 4,100 gaming sites throughout the state. However, Gene O’Shea of the Illinois Gaming Board said checking ID’s against such a list would not be practical.
