Illinois Governor Bruce Rauner recently expressed opposition to certain parts of SB7, the so-called “grand bargain” legislative package that would end the two-year budget deadlock in Illinois and includes allowing six new casinos in Chicago, Rockford, Danville, Williamson County and Lake County. But despite Rauner’s objections, the Senate voted 31-26 to endorse the casino legislation since that would generate revenue for the cash-strapped state. All the bills in the “grand bargain” must pass or none will pass.
State Senator Terry Link said the state would collect nearly $1 billion in licensing fees alone, with operators in Chicago and the south suburbs paying $30,000-$100,000 per slot machine or blackjack-table seats. The gaming bill directs licensing fees to the state’s general revenue fund, while all other revenue would be added to the Education Assistance Fund. Revenue from a Chicago casino would go directly toward police and fire pensions.
If the package passes, land-based casinos would be allowed for the first time in Illinois. Previously they had been prohibited from operating in Chicago due to competition with the region’s horseracing industry. Supporters said a Chicago casino would boost tourism and keep gamblers from going to Indiana casinos. Link said, “I have heard it from that side and this side from people complaining, ‘Why do we have to give more general revenue funds to the city of Chicago to pay for their police and fire pension?’ Well guess what? Pass this bill and you won’t have to worry about that in the future.”
Currently, the largest riverboat casinos in Illinois are taxed at 50 percent, but that could be lowered to 16 percent for table games and 20 percent for slots if land-based casinos are allowed. A Commission on Government Forecasting and Accountability report indicated annual revenue would rise by18 percent to about $560 million.
The gambling proposals also would allow casinos to add up to 400 slots, to a maximum total of 1,600, and would permit slots at airports and the state’s four horse racetracks in Arlington Heights, Collinsville, Cicero and Quad-Cities.
Speaking in opposition to the proposed gambling expansion, Anita Bedell, director of Illinois Church Action on Alcohol and Addiction Problems, said, “Every time you expand gambling, you create more costs.” She said for every $1 gambling brings the state, taxpayers spend $3 to address the accompanying rise in addiction, crime and bankruptcy. She also questioned the logic of expanding casinos when their revenue is declining due to video gambling competition.
Even with the reduction in tax rates, the existing riverboat casinos oppose the measure. Just two years ago, distributed gaming—slots in bars, restaurants and taverns—was introduced and has hit the casinos hard.
