Illinois Democratic Senate President John Cullerton and Minority Leader Christine Radogno recently crafted a wide-ranging package of 13 bills to end a nearly two-year dispute between Democrats and Republican Governor Bruce Rauner, which has delayed an annual state budget since 2015. The package includes a gambling expansion measure.
Under the gaming expansion bill co-sponsored by state Senator Dave Syverson and state Senator Terry Link, casino licenses would be allowed in Rockford, Danville, Lake County, Chicago, the south Chicago suburbs and Williamson County. The state currently allows 10 casinos. In addition, slots would be allowed at horse racetracks at Arlington Heights, Cicero and Collinsville.
Syverson said the Senate deal could pass because it contains budget and government reforms both Democrats and Republicans have been seeking. “Each bill has a poison pill in it. So if one doesn’t pass, none of them do. The reason for that is that there are things in these bills that everybody hates and things everybody likes. If you put all these things together, the hope is that you force a vote on all of it and we can move forward,” Syverson said.
Under the bill, 5 percent of revenue from a Rockford casino would be split among local governments with 70 percent to Rockford; 20 percent to Winnebago County; 5 percent to Machesney Park; and 5 percent to Loves Park.
Video gaming continues to spread across Illinois, with nearly 25,000 video game terminals in operation at bars, restaurants, bowling alleys, truck stops and fraternal and veterans organizations. Daniel Holmes, manager of the Gaming Services Group at RubinBrown in St. Louis said video games are a primary reason Illinois casino revenue decreased 1.7 percent in 2016, to $1.4 billion.
Holmes said to reverse the trend, lawmakers could allow the state’s casinos to open a second location on their existing licenses. That would help the Casino Queen in East St. Louis, which for years has hoped to buy and install slot machines at Fairmount Park racetrack in Collinsville.
Holmes noted revenue fell 10 percent in 2016 at the Argosy casino in Alton, the St. Louis market’s smallest casino. A section of that casino is closed on weekdays due to “lack of play,” Holmes said.
In 2012, then-Governor Pat Quinn vetoed legislation that would have allowed casinos in Chicago and the south suburbs. At the time, state Rep. Will Davis said, “I’m disappointed to the extent we constantly see a long line of cars leaving Illinois and going to Indiana through the south suburbs. The south suburbs get the shaft again.”
Some analysts still believe a Chicago casino would cannibalize revenues at Rivers Casino in Des Plaines, the state’s most popular and highest grossing casino, with gross revenue of $35.3 million in December; $2 million of that goes to local governments. The casino generates more than $400 million in annual gross revenue, directing more than $9 million a year to Des Plaines. Under its revenue sharing agreement with the state, the Des Plaines casino will pay Illinois $10 million a year for 30 years, and gives 40 percent of the remainder to 10 economically disadvantaged communities in the south and southwest suburbs.
