Now that Illinois state Rep. Bob Rita has introduced two Chicago-casino amendments to the Chicago Casino Development Authority Act, the question is which one, if any, will make it into law. Legislators have passed gambling bills twice but both were vetoed by Governor Pat Quinn, and in 2013 the proposed measure never made it to Quinn’s desk. This year, based on Rita’s amendments, expanded gambling legislation could have a chance.
One proposal would allow a single Chicago casino with 10,000 positions, making it the largest in the world, with revenues divided between the city and state. The second plan would allow a smaller, 4,000-position casino in Chicago with four smaller casinos in southern Cook County, Lake County, Vermilion County and Winnebago County, plus slots at most horseracing tracks.
Chicago Mayor Rahm Emanuel has insisted he wants to focus on city finances before pursuing casino revenues—which would not become a reality until seven years of operation, and most likely would not generate more than $120 million annually. That amount would not have much impact on Chicago’s pension deficit of $18.8 billion.
Chicago-casino supporters said a downtown operation would create 17,000 jobs and generate more than $6.5 billion annually. But opponents, like Tom Swoik, executive director of the Illinois Casino Gaming Association, said Illinois casino revenue has dropped by as much a 50 percent in the past year, indicating there is not enough demand for new casinos. “We’re not creating new gamblers. This is a question of supply and demand. Creating new supply in a saturated market does not create demand,” Swoik said. He stated since many communities allow video slots in neighborhood bars and restaurants, players are less likely to travel to casinos.
Caleb Melamed, an attorney for the Illinois Gaming Board, added, “If you see the casino revenue figures month to month, there is a significant drop and it’s across the board. A lot of people thought video gaming would not affect gambling and it does. You can’t act in isolation.” However, Rita noted, “They talk about video gaming and how it is saturating the market, but we just regulated that. There is no way in the world it is saturating the market. How could that be an argument?”
In addition to market saturation, a Chicago casino also raises concerns about crime, said Art Bilek, executive vice president of the Chicago Crime Commission. Bilek said could support a Chicago casino if it were not operated by the state. “It should be understood that a casino is not for campaign donations or for a political job. It would open the gaming industry to unnecessary risks in the area of government corruption,” he said.
Melamed added he also is concerned with the issue of state control as well as casino regulation. But, he said, “We don’t want casinos to fail. There are significant questions about saturation in the Illinois gaming market and this is a significant expansion.”
Meanwhile in Springfield, Aldermen Cory Jobe and Frank Edwards have sponsored an ordinance stating that business wishing to offer video gaming, that receive a liquor license on or after May 15, must earn at least 60 percent of their annual revenue from food and beverage sales. Under a 2009 law, liquor-pouring establishments that receive a state license may have up to five gaming machines. Springfield also requires businesses to have a city license.
Jobe said the proposal would protect traditional bars and restaurants from losing business to storefront gambling parlors that serve minimal food and beverages. The state law that allowed video gaming was intended in part to help bars and restaurants make up for revenue they lost due to the statewide smoking ban, he said. “This is an issue that’s out of control that we need to bring some parameters around,” Jobe said. Edwards added, “I think we have to have protection for the people who have invested a lot of money in the community. I don’t think the intent of the law was ever to do this. If the intent of the law was to do this, why doesn’t the state of Illinois allow the city of Springfield to open a full-blown casino?”
The city council already has approved zoning changes to allow 16 gaming parlors throughout the city; five more requests could be approved this month. In addition, the council has approved liquor licenses for four Dotty’s cafes, a chain with more than 150 locations in Oregon, Nevada and Montana. The Illinois Gaming Board has approved licenses for 24 Dotty’s locations in the northern part of the state, and applications for three in Springfield are pending. Dotty’s officials said they plan to open 150 in Illinois over the next several years.
