SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Lottery and gaming dreams discussed *** Updated x1 ***

Wednesday, Jan 31, 2007

Filan explains why he wants to lease out the state lottery.

The governor’s idea to lease the Illinois lottery didn’t generate much enthusiasm from state lawmakers last year, but the state’s chief operating officer pushed the idea anew Tuesday, arguing that Illinois must relieve itself of the risk posed by the lottery.

“I think revenue is at risk,” said the state’s new chief operating officer, John Filan, during an appearance before the Union League Club of Chicago. “I’m concerned lottery revenues will go down, not up, over time. I want to pass that risk on to the private market.”

Gov. Rod Blagojevich has suggested that a long-term lease of the lottery could generate new money for schools, but lawmakers are skeptical.

“I think they’re grasping at straws to come up with some plausible explanation as to why they want to sell a state asset, use the money now and not worry about it down the road,” said Rep. Jack Franks (D-Woodstock) who said he has requested hearings on the lottery proposal when lawmakers return to Springfield early next month.

Rep. Brent Hassert (R-Romeoville) questioned why private companies would give a “whole boatload of money for the lottery” if they’re looking at the same risky market.

Filan and the administration claim that current state law ties the state’s hands in expanding the lottery’s revenues. For instance, they’re limited on how much money they can spend on advertising and they can’t pay incentive sales bonuses to vendors or sales people.

The governor’s proposal, as far as we’ve seen, assumes that the General Assembly will remove those restrictions from a private company. I wouldn’t bet on that. As Rep. John Fritchey has noted, the plan also seeks to reduce the number of payouts, another not so popular idea.


Speaking of betting
, Rep. Lou Lang unveiled yet another gaming plan yesterday.

Gov. Rod Blagojevich has agreed not to interfere with a new gambling-expansion bill if it advances in the legislature this spring, the measure’s sponsor said Tuesday.

Rep. Lou Lang, a Skokie Democrat who previously pushed for additional Illinois casinos, said Blagojevich recently told him he would decide the merits of Lang’s latest proposal if and when it reaches his desk.

Blagojevich, a Chicago Democrat, in the past has publicly discouraged lawmakers from even sending him such legislation, by threatening a veto.

“The governor assured me that he was not going to say or do anything that would get in the way of my attempting to move this legislation,” Lang, chairman of the House Gaming Committee, said at a Chicago news conference. “That is what he told me, and that is what I expect will happen.”

Wanna take odds on the governor keeping his word?

*** UPDATE *** Mayor Daley’s response, via Chicago Public Radio.

- Posted by Rich Miller        


17 Comments
  1. - zatoichi - Wednesday, Jan 31, 07 @ 9:37 am:

    Filan have any evidence from other states that Lotery revenues go down over time?

    Lang get an MOU?


  2. - Fan of the Game - Wednesday, Jan 31, 07 @ 10:29 am:

    Open up gambling and become the “Vegas of the Midwest.”

    Selling the lottery produces a one-time money pot that helps balance the budget now but depletes the revenue stream. The state needs more revenue streams and/or fewer expenses.


  3. - Bluefish - Wednesday, Jan 31, 07 @ 10:32 am:

    My bet is that Blago would be hard pressed to say no to a casino bill that creates new revenue without raising taxes. But does Lang’s bill have any chance to make it to his desk?


  4. - Political insider - Wednesday, Jan 31, 07 @ 10:51 am:

    It seems like a heck of a way to try to sell something — announce that the future for the game is bleak before accepting any bids. If what Filan says is true, not many companies would be willing to pay a premium for the game. Oh wait, the governor says they are willing to. Could it be that the state is trying to sell a valuable resource for a onetime infusion of cash? Of course not. Blago and Filan say its not so. And we all know their numbers are believable…


  5. - Yellow Dog Democrat - Wednesday, Jan 31, 07 @ 11:07 am:

    We don’t have to take odds on whether or not the Gov will keep his word. From Crain’s:

    But Gov. Blagojevich has no plans to expand gaming, according to a spokeswoman in his office.

    “We’re putting our budget proposal together now and we aren’t proposing more gaming, but we’ll look at lawmakers’ ideas,” the spokeswoman said.

    Lest we forget, the Illinois House voted last year to abolish casinos. I have great respect for Lou Lang’s legislative finesse, and Emil Jones’ desire to see a casino can’t be underestimated. But the fact remains that Lang’s proposal wouldn’t even make a dent in the state’s structural budget deficit, the gap in school funding, our pension debt, or our obligation to provide property tax relief.

    That means that gambling expansion would still require some sort of tax hike to fill the budget void. You can’t pass the tax hike without rural Democrats and Republicans on board, and while most of them will vote for a modest tax hike to provide property tax relief and more money for schools, it is unlikely in the extreme that they would support gambling expansion.


  6. - Cassandra - Wednesday, Jan 31, 07 @ 11:12 am:

    There sure must be a lot more potential gamblers out there, not to mention current gamblers willing to spend even more money.

    Otherwise, how are all these additional gambling venues going to make money. Or are Blago/Filan a little too optimistic in their assumption
    that the ever-pluckable Illinois taxpayers will pour into those additional gambling places and spend ever more money.

    Maybe not.


  7. - anon - Wednesday, Jan 31, 07 @ 11:19 am:

    Cassandra. All one needs to do is go to the northwest Indiana riverboat parking lots and take a look at the license plates. Last time I went to the Hammond boat I saw 48 Illinois plates out 50 that I counted. There obviously a pent up demand helping out Indiana’s budget.


  8. - Truthful James - Wednesday, Jan 31, 07 @ 11:33 am:

    Political insider is correct.

    Bidders will discount the range of future earnings to come up to the price. Prospective buyers are not risk takers.

    Let us not forget as well the discount rate will include both the taxable cost of funds and the required return on equity investment. With capital assets, some benefit is obtained by using depreciation as a tax shelter.

    On the other side of the equation, the State would discount the future flows at some tax exempt rate. (If the state needed the money it could borrow iut at that rate and secure it with future revenues.

    This is a current money play, pure and simple. Filan is being disengenuous.


  9. - Yellow Dog Democrat - Wednesday, Jan 31, 07 @ 11:56 am:

    Not only is Filan being disengenious, his own revenue numbers don’t support his claim. Illinois Lottery revenues have been growing at a steady clip, and unless he’s suggestion that global warming or a meteor impact are somehow going to have an impact on the lottery, we have to expect that they will continue to grow.


  10. - Anonymous - Wednesday, Jan 31, 07 @ 12:07 pm:

    Exactly! Their own bid documents talk about how much MORE growth the lottery could be realizing with additional advertising and some other tweaks. They are shamelessly trying to have it both ways.


  11. - John Ruberry - Wednesday, Jan 31, 07 @ 12:27 pm:

    Lang, my rep, is in bed with casiso interests.


  12. - Pinkie Ring - Wednesday, Jan 31, 07 @ 12:43 pm:

    lottery = football
    Lang = Charlie Brown
    Blago = Lucy Van Pelt
    We’ve seen how this turns out


  13. - Pinkie Ring - Wednesday, Jan 31, 07 @ 12:45 pm:

    Duh, I just transposed this wrong, it was supposed to be inthe Casino thread, but you get the idea.


  14. - Commonsense in Illinois - Wednesday, Jan 31, 07 @ 12:53 pm:

    So, let’s see now. 1. John Filan says the reason the state wants to sell the lottery is because the revenues are suspect and he wants somebody else to get left holding the bag. What a great sales pitch that’ll be. 2. The Governor has promised Rep. Lang he’ll stay out of a gambling expansion debate. Well we all know that the governor is a man of his word and would never double cross a legislator in the name of self promo…never mind. 3. Additional casino revenues will not address the state’s debt situation…good point, but I agree for a different reason. For this administration, there is no state debt OR revenue deficit, so any additional money is “found” and can be used for nifty new programs. Is this a great state or what!?


  15. - Cassandra - Wednesday, Jan 31, 07 @ 1:00 pm:

    So can we look forward to a border gambling war with various casinos in Illinois and border states
    trying to develop even better, glitzier casinos to attract a floating population of gamblers.

    But what if Illiois loses the war?


  16. - Commonsense in Illinois - Wednesday, Jan 31, 07 @ 1:10 pm:

    Cassandra–Illinois cannot “lose” a casino war to Indiana based on population alone. Chicago gamers will simply stay in Chicago and that’s more than 1 million customers. What it does affect, though, is the idea that casino gaming will draw tourists. The reality is that gaming is so wide spread that it’s really a local market industry now (Las Vegas and to some extent Atlantic City still being exceptions). Bigger, glitzier…okay, but the real question is payout to customers on the basic games…slot machines, video poker, keno, etc. The odds on table games stay the same, and if Lang’s efforts are for boats in Cook/Lake counties, don’t look for large poker rooms…you need a lot of space and tables to make it profitable for the casino. Long and short; Illinois loses because of the tourism angle and increases to the number of problem gamblers because the state is offering additional venues for addicts to feed their gambling habit. (It’s not a large number, usually about 3%, but they are there.)


  17. - Tzedek - Wednesday, Jan 31, 07 @ 7:43 pm:

    Ruberry, you got it wrong on Lang. If you disagree with what Lang is proposing with the casinos, fine, disagree all ya want. But don’t sling any mud toward Lang–it’s uncalled for. He’s not in bed with any interests, as you stated. Lang is simply concerned with generating revenue for education and other worthy causes. He’s a kind, decent legislator and deserves more respect.


Sorry, comments for this post are now closed.


* Reader comments closed until Memorial Day
* Gaming bill could grow
* SUBSCRIBERS ONLY - OT update
* Question of the day
* He gone
* Harmon: Rauner is "bullying" and "holding the entire state hostage"
* Today's quotable
* Madigan tax hike defeated
* Another welcomed change
* Business as usual is right
* Rauner to unveil actual bills today, with no "right to work" in sight
* Serving Consumers, Honoring Veterans – Credit Union Cooperative Values in Action
* Your daily "right to work" roundup
* *** LIVE *** Session coverage
* SUBSCRIBERS ONLY - Supplement to today’s edition
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Good morning!
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............

...............

...............

...............


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

          
        * Huawei bringing fingerprint scanner to budget smartphone
        * Job cuts in the works for BlackBerry
        * NVIDIA Shield Tablet getting Android 5.1 update
        * Count finance manager app brings new features in update
        * Switcheroo wants you to take control things using Bluetooth LE
        * Atlantic Fleet lets you experience being a Royal Navy sailor
        * Find the answers you’re looking for with the Light app

        * BlackBerry Laying Off Workers in Handset Unit
        * This Week's Top Downloads
        * Turn a Jar of Mayo Into the Perfect Hiding Place for Your Valuables
        * Noisli for Chrome Generates Background Sound to Keep You Productive
        * ‘Tomorrowland’ (The Movie) And the Future of the Past
        * Why You Should Protect Even Your Most Unimportant Data
        * GIFs for Mac Makes Sure You Always Have the Perfect Reaction GIF Handy

        * Sale runs into early trouble with fastball
        * Konerko, family honored by speed of number retirement
        * In a flash, Sale burned by early home runs
        * Konerko's No. 14 retired on South Side
        * Quintana looks to come out on top with a little run support
        * Bond between Ozzie, Konerko one of respect
        * Twins 4, White Sox 3: Sold-out crowd can't fire up offense

        ...............


        Main Menu
        Home
        Illinois
        YouTube
        Pundit rankings
        Obama
        Subscriber Content
        Durbin
        Burris
        Blagojevich Trial
        Advertising
        Updated Posts
        Polls

        Archives
        May 2015
        April 2015
        March 2015
        February 2015
        January 2015
        December 2014
        November 2014
        October 2014
        September 2014
        August 2014
        July 2014
        June 2014
        May 2014
        April 2014
        March 2014
        February 2014
        January 2014
        December 2013
        November 2013
        October 2013
        September 2013
        August 2013
        July 2013
        June 2013
        May 2013
        April 2013
        March 2013
        February 2013
        January 2013
        December 2012
        November 2012
        October 2012
        September 2012
        August 2012
        July 2012
        June 2012
        May 2012
        April 2012
        March 2012
        February 2012
        January 2012
        December 2011
        November 2011
        October 2011
        September 2011
        August 2011
        July 2011
        June 2011
        May 2011
        April 2011
        March 2011
        February 2011
        January 2011
        December 2010
        November 2010
        October 2010
        September 2010
        August 2010
        July 2010
        June 2010
        May 2010
        April 2010
        March 2010
        February 2010
        January 2010
        December 2009
        November 2009
        October 2009
        September 2009
        August 2009
        July 2009
        June 2009
        May 2009
        April 2009
        March 2009
        February 2009
        January 2009
        December 2008
        November 2008
        October 2008
        September 2008
        August 2008
        July 2008
        June 2008
        May 2008
        April 2008
        March 2008
        February 2008
        January 2008
        December 2007
        November 2007
        October 2007
        September 2007
        August 2007
        July 2007
        June 2007
        May 2007
        April 2007
        March 2007
        February 2007
        January 2007
        December 2006
        November 2006
        October 2006
        September 2006
        August 2006
        July 2006
        June 2006
        May 2006
        April 2006
        March 2006
        February 2006
        January 2006
        December 2005
        April 2005
        March 2005
        February 2005
        January 2005
        December 2004
        November 2004
        October 2004

        Blog*Spot Archives
        November 2005
        October 2005
        September 2005
        August 2005
        July 2005
        June 2005
        May 2005

        Syndication

        RSS Feed 2.0
        Comments RSS 2.0
        WordPress

        Loading


        * Illinois electronics recycling bill headed to g.....
        * Ideology, not money, holding up state budget deal..
        * Long legislative summer forecasted..
        * Finke: Relax, there's a whole week left get it .....
        * $34 million controlled by Rauner, allies looms .....


        * Cahokia, Lincoln-Way and Illini West win state championships
        * Jeni's scoop shops reopen after listeria-related shutdown
        * Man set for deportation granted reprieve to donate kidney
        * 2 children thrown from SUV in Illinois crash; 1 killed
        * Law fails to stop Illinois schools from fattening pensions
        * Video captures Chicago officer apparently asleep
        * Chlorine leak sickens 9 at Naperville swimming school
        * Medical pot businesses to battle black market for customers
        * 4-year-old girl shot in head outside Chicago prom party
        * Democrats giving no hint of compromise with Rauner on budget

        * Illinois crib bumper bills stall in Senate
        * Statehouse Insider: Relax, there's a whole week left get it all done
        * Special funds inviting bailout target for Illinois
        * Illinois road construction funds get swept
        * Law fails to stop Illinois schools from fattening pensions
        * Rauner agenda surfaces at Capitol
        * Illinois prisons director resigns 2 months after taking job
        * House Democrats vote down workers comp bill
        * Langfelder talks DNR lake partnership
        * U of I bracing for 'very damaging' cuts, new president says

        * Boeing takes top spot in 2015 largest publicly traded companies list
        * Terminal spending
        * Plenty of rivals are following WeWork into co-working competition
        * How Wal-Mart is hurting Mondelez
        * Why this proposed emergency room annoys the hospital industry


          * Man charged with murder in Bridgeport shooting
          * Man dead, 1 wounded during shootings on West, South sides
          * Anguished cries of mother punctuate Chicago weekend violence
          * No bail for man accused of accidentally shooting bystander
          * $1 million bail for boy, 16, charged with armed robbery
          * Purdue adopts 'Chicago principles' to protect free speech
          * Prosecutors: Theft suspect used fake credit card for limo ride
          * Taft drummers march to beat of beginnings, an ending at Memorial Day Parade
          * Endangered butterfly now missing at Indiana Dunes
          * Porsche hit-and-run killer seeks redemption: 'I'm a different person today'


          * Illinois Supreme Court hears $10B Phillip Morris appeal
          * Sheriff calls on feds to investigate Puerto Rican agencies that send addicts to Chicago
          * Sheriff names clinical psychologist to run Cook County Jail
          * Illinois prisons director resigns 2 months after taking job
          * Obama library foundation raised $5.4 million in 2014
          * Illinois moves to downgrade pot possession to a fine
          * Emanuel calls on Chicagoans to prevent 'lost generation'
          * Grand Jury Indicts 6 Baltimore Officers In Freddie Gray's Death
          * Inauguration Day: New City Council faces serious financial problems
          * Avian flu outbreak takes poultry producers into uncharted territory


          * Bernard Schoenburg: Adam Lopez, Rob Mellon, vie to win Aaron Schock's former U.S. House seat for Democrats
          * Illinois crib bumper bills stall in Senate
          * Statehouse Insider: Relax, there's a whole week left get it all done
          * Statehouse Insider: Relax, there's a whole week left get it all done
          * Our Opinion: Will someone please lead Illinois?
          * Special funds inviting bailout target for Illinois
          * Andy Shaw: Campaign finance in a sorry state
          * Illinois road construction funds get swept
          * Law fails to stop Illinois schools from fattening pensions
          * Proud of WWII service, they opposed Vietnam War


          * Apple City barbecue team 9th at World Championship
          * Bobbie Bodine
          * Vernon Mudd
          * Noraine 'Betty' Meng
          * Mildred Graham
          * Margaret Fadler
          * Dorothy Rock
          * John Doss
          * Thomas Kellerman
          * Memorial Day obituary hours


          * At least 10 Afghan police officers killed in Taliban assault
          * LEADING OFF: Bernie's Bash at Yankee Stadium, Price returns
          * South Side celebration: Sox retire Konerko's No. 14
          * Rockets regroup after 115-80 win by Warriors makes it 3-0
          * Vermette scores winning goal, Blackhawks beat Ducks 5-4

          * U.S. Rep. Thornberry Juggles Politics as P...
          * Black candidates make history in McKeesport
          * Bustos Seeking Wounded Warrior Fellow for ...
          * Takai Joins a Push to Support New Mothers ...
          * Guest lineups for the Sunday news shows
          * Poll: Duckworth Zaps Zopp in U.S. Senate D...
          * Ryan Mullen makes move as Rás opens up
          * D.C. Lawmakers Unleashed — In 140 Characte...
          * Monument to honor LGBT veterans in nationa...
          * The fight Harry Reid let go – Roster set f...

          * Don’t delay new standards...
          * Deadlocked over long list of problems, Con......

          * Don’t delay new standards...
          * Senators question possible loss of $135M b......

          * Every Jack Has His Cal
          * CPS scandal. Solomon, Byrd-Bennett, Swanson, Brizard, Vitale, Emanuel, Zopp, Vallas. Mums the word.
          * Didn’t the Chicago Tribune support Mussolini last time too?
          * The Popular Vote vs. the Electoral College
          * Rep. Ives and Assessor Dixon: The Numbers Behind Madigan's Property Tax Bill
          * The Wrath of CON | How Certificate-Of-Need Laws Affect Access to Health Care
          * Morrison: Why I voted no on HB217
          * Just a Common Soldier: A Moving Tribute for Memorial Day
          * Legal rights group applauds Rauner's reform proposals
          * Thorner: Leo Catholic High School students provide evidence favoring school choice


          * The Illinois Department of Public Health Urges Illinoisans to Take Precautions Against West Nile Virus - Illinois Department of Public Health offers tips for avoiding mosquito bites
          * IDOT Suspends Non-Emergency Road Work for Memorial Day Holiday Weekend - Lanes Opened to Improve Traffic Flow
          * Illinois State Fire Marshal Recognizes EMS Week
          * IDOT, ISP: Drive Safe, Drive Smart Over Memorial Day Weekend - Click It or Ticket Campaign Continues, New “Driving Dead” Episode Debuts
          * Breakfast Club Fans Can Take Home Movie Memorabilia with Special 30th Anniversary Auction - Theater Chairs from Set of Iconic Movie Up for Sale




              Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller