Illinois Governor J.B. Pritzker has signed a major gaming expansion bill into law. The measure, which will help pay for the $45 billion Rebuild Illinois capital projects bill, legalized sports betting, authorized up to six new casinos and casino-style gaming at horseracing tracks, and allowed more video gambling machines in restaurants, taverns, fraternal organizations and truck stops.
But several of these components are a long way from happening. The Illinois Gaming Commission still must establish sports betting rules, review eventual gaming license applications for the six new casinos and racinos and oversee adding more video gaming terminals.
At first, sports betting will be allowed at casinos, horseracing tracks and sports venues more than 17,000 seats. These facilities will start accepting wagers as soon as the gaming board issues licenses. Within one year, as part of a pilot program, the state will select a vendor to set up sports lottery terminals at up to 2,500 lottery retail locations, with another 2,500 terminals to be set up in the second year.
But for now it’s all a waiting game. For example, before the 4,000-position downtown Chicago casino can move forward, the Illinois Gaming Board must hire a private consultant to conduct a casino feasibility study. The consultant will have just 45 days to prepare a report, then the city will have only 90 days to propose any changes in the law.
As another example, Fairmount Park horse racetrack in Collinsville, allowed up to 900 gaming positions, has two months to apply for a gaming license from the Illinois Gaming Board, which will have up to 120 days to issue the license. Then the racetrack will have 120 days to pay the fees on those positions.
Meanwhile, Fairmount Park President Brian Zander said the venue is waiting for applications for sports betting and casino games.
“We have to wait for the gaming board to tell us, ‘Here’s what you have to do, here’s what your choices are, here’s what you can’t do,’ and then we’ll go from there. Basically we’re kind of in a holding pattern at this time,” he said.
Zander said it’s “not going to be “an easy process” for the gaming board to address all of its new responsibilities. “To me, that seems like a lot of work for a gaming board that I’m told is pretty busy just trying to keep up with all these taverns and stuff that want VGTs,” Zander said.
As a venue with at least 17,000 seats, World Wide Technology Raceway at Gateway in Madison also is reviewing sports betting.
Executive Vice President and General Manager Chris Blair said, “The signing of the gaming bill obviously brings a lot of unique opportunities for sports gaming in the state of Illinois. This is a new area for motorsports and one that has many of the top sanctioning bodies examining their next steps. We will work closely with those groups to see what works best for our entertainment venue as this story continues to evolve.”
Cities that have been approved to host the new casinos also are busy making plans. Rockford officials recently issued a 22-page request for casino proposals. It’s being distributed to any company or group that expressed interest in applying for the city’s casino license, plus all current Illinois casino operators and a national gaming association, and was posted on a “Casino Update” page on the city’s website.
Rockford Mayor Tom McNamara said, “We are trying to cast as far and wide of a net as possible.”
In addition, the Rockford City Council recently authorized McNamara to spend up to $150,000 on consultants and lawyers to help the city review, score and negotiate casino proposals. “The clock is ticking and you get one shot at this,” the mayor said. “So we are trying to make sure that we do the very best we can for all our citizens and make sure we strike the very best deal. And we are also trying to do that in a transparent way.”
The non-refundable $75,000 application fee per proposal will help the city recoup some of its costs for paying pay consultants, covering city staff time and paying any expenses related to the application process, McNamara said. He added he hopes a temporary casino will open while the permanent location is under construction. A Rockford casino is expected to create 600 construction jobs and 900 permanent jobs and generate $4 million to $8 million in annual tax revenue for the city.
The city is in a race against time to get a casino up and running before the Ho-Chunk Tribe moves forward with its casino, 18 miles across the state line in Beloit, Wisconsin.
The city of Waukegan also issued a request for proposals for a casino developer. Mayor Sam Cunningham said he expects “a very transparent and open process. A lot of eyes are going to be on Waukegan in the coming months, and so how we handle this is going to be critical.”
According to the RFP, “Given the state’s requirements, the city seeks to maximize the value of the gaming license and assure long-term viability of the casino while moving quickly through the statutory vetting process. Time is of the essence in this effort, as this is an impactful and long-awaited project for the city of Waukegan.” The application fee is $25,000.
Cunningham said the city expects to receive 10 to 12 proposals, which will be ranked by a city review team. Finalists may be asked to submit additional information, he said. Then the review team will make its recommendation to the city council, which plans to submit two to four potential developers to the state gaming board.
The city of Danville also has issued RFPs for its casino. Responses are expected in about a month. An operator selected by the city must apply for a state gaming license by October 28. Vicki Haugen, chief executive officer and president at Vermilion Advantage, Vermilion County’s economic development organization, said, “This process would normally take six to 12 months, so this is really condensed. For the Danville license, it’s not a bad thing. We want to move quickly anyway, because of Terre Haute,” referring to the proposed casino in Vigo County, Indiana, about a one-hour drive southeast of Danville.
Haugen noted voters there must approve a casino in a November 5 referendum; Illinois doesn’t have a similar requirement.
Mayor Rickey Williams Jr. recently hired developer Dave Cocagne, president at Chicago-based Vermilion Development, to help guide the city through the application process. Haugen said she expects major operators will focus on the Chicago license. “But there are lots of regional operators, and so we feel that’s probably the type of operator who will be interested in the smaller communities,” she said.
A Danville casino is expected to generate $6 million in annual revenue and create up to 400 construction jobs and up to 800 permanent jobs.
