The first of two hearings before the Illinois House Executive Committee about two expanded gambling bills was held May 4 in Chicago. Illinois state Rep. Bob Rita, sponsor of both plans, said he wanted to measure interest in a Chicago-only casino plan and discuss options with lawmakers in an effort to close the state’s billion budget shortfall before the new fiscal year begins July 1.
Industry experts testified at the first hearing. The second hearing will focus on the tourism and economic benefits of casino gambling in Chicago.
House Bill 2939 would create a mega-casino in Chicago with up to 10,000 gaming positions. Half of the gaming revenue would go to the city and the other half would be distributed statewide for education and capital construction.
The other proposal, House Bill 3564, which also would require revenue sharing, would allow a 4,000-6,000-position Chicago casino plus four smaller, 1,200-position casinos in a suburb south of Chicago and Lake, Winnebago and Vermilion counties. Revenue estimates for the casinos range from $450 million to more than $1 billion. Rita’s bill also would allow slots at horse racetracks. The Chicago casino would be state-run in both plans, a bone of contention in the past.
“Our state clearly needs revenue to close our large revenue gap in Springfield and to put people to work around the state. We need to better understand how well gaming is doing in other states and how well a Chicago casino could perform as we position expansion in the budget conversation. These hearings will help provide the direction we need to make gaming expansion a strong revenue option this year,” Rita said.
Chicago Mayor Rahm Emanuel has promoted the idea of a city casino for years. In 2013 he released a video pledging all revenues would go to schools. Lately he’s discussed the issue with state Senate President John Cullerton. Emanuel has said a Chicago casino would stop the flow of people to northwest Indiana’s five casinos, which last year took in about $1 billion from gamblers and generated $307 million in state taxes.
Governor Bruce Rauner has said he would not object to more casinos if communities wanted them. “I know the city of Chicago would very much like to have a significant casino within the city boundaries and I am very open to considering that. I want to make sure that it’s good for all the taxpayers and all the citizens, both of Chicago and the state of Illinois when we have that discussion,” Rauner said.
Rita sponsored gambling bills in the past two legislative sessions. Two years ago his bill passed the legislature but was vetoed by then-Governor Pat Quinn over concerns about regulation and corruption at a Chicago-owned casino. Last year the bill did not get a vote in the House.
At the May 4 hearing, Illinois Gaming Board attorney Caleb Melamed told lawmakers. “This is a significantly different piece of legislation than previous years.” He expressed concern over potential market saturation and also questioned the unusual state-run casino model. Representatives from the Chicago Crime Commission said an operator-owned model offered better protection against corruption.
Officials from the Chicagoland Chamber of Commerce said a downtown casino would have an estimated annual economic impact of $450 million-$950 million, attracting tourists and locals with shopping and entertainment. Urban planner Kim Goluska, president of Chicago Consultants Studio Inc., said, “Chicago is an incredible prize for the gaming industry. The revenues are going to be huge no matter what they are.”
Chicago area pastors and anti-gambling groups also spoke about the potential social costs of both plans. “Casino gambling is really nothing more than an increased tax on those who can’t afford it,” said Matt Fitzgerald, senior pastor at St. Paul’s United Church of Christ in Chicago.
In addition to Rita’s proposals, state Senator Terry Link and Cullerton said they received a third proposal, for a large city-owned casino in Chicago, along with new casinos in the south suburbs and in Rockford, Danville and Lake County. The plan also would allow year-round video gambling at Arlington Park and Illinois’ four other horse tracks. “We’ve just received another proposal from the city. We’re reviewing that now. We’re trying to see how it looks compared to what we had. It’s a pyramid. If you pull one brick out, the whole thing could fall apart,” Link said.
He added Rauner and his staff are “definitely a lot more open-minded” about expanding gambling than Quinn was. “They may not be proponents of gambling, but they realize this is something that would benefit a lot of people. I’ve met with Rauner and I know the mayor’s met with him. It’s a thing we’re moving along.” Regarding a single mega-casino in Chicago, Link said, “No, that will not happen.”
