* My syndicated newspaper column this week is about a possible new funding source for capital projects: Slots at tracks…
The Statehouse is buzzing yet again with talk of a new gaming plan. This time, the players say, they have their acts together. Really.
I’m always pretty skeptical of these big legislative pushes. Expanding gaming is one of the most difficult things to do. A big reason is that there’s so much money involved with gaming that people get too greedy. Eventually, the bill suffocates under its own weight. Too many goodies are added to the Christmas tree.
The only time this ever works is when all the legislative leaders and the governor are pulling together. That’s how gaming was expanded under Gov. George Ryan, and that’s how video poker was legalized last year under Gov. Pat Quinn. Everybody at the top, Democrat and Republican, worked together to get it done.
In video poker’s case, it was the Republicans who broached the idea. The Democratic majority was looking around for ways to fund a massive public works proposal, and when the Republicans agreed to keep the fee hikes to a minimum by using video poker, the deal was set.
The latest action started when state Rep. Will Burns (D-Chicago) introduced a bill to put slot machines at horse racing tracks.
The idea would be to use the money for capital projects. The law legalizing video poker in taverns, truck stops and fraternal organizations has come under increasingly heated attack by editorial boards while several local governments are opting out of the law.
The state’s checkbook is empty, so using the state’s account to borrow money is difficult, to say the least. The Illinois Gaming Board is taking its sweet time in preparing rules and regulations for the placement of the slots. Chicago Mayor Richard Daley also indicated recently he wasn’t thrilled with the idea of legalizing the machines for his city.
Even if video poker works out OK, there’s always a hunger in Springfield for more capital projects. This state’s infrastructure is so out of whack that we probably could spend $100 billion and not get everything working right.
Anyway, the latest gaming push really kicked into gear when House Speaker Michael Madigan (D-Chicago) suggested that language from a bill he introduced awhile back be used instead of Burns’. Madigan’s bill would raise more money than Burns’ bill would, so Madigan’s interest got everyone pretty excited, and negotiations began in earnest.
The biggest initial hurdle when dealing with the racetracks is getting the track owners together. They don’t like each other much and usually will bicker among themselves ad infinitum. Then, negotiators have to convince the people who own and train the horses to climb on board, and that’s never easy, either.
From what I can tell, negotiations apparently have gone far better this time around, and the owners and the horsemen reportedly are getting close to an agreement. The sputtering economy and the fact that Illinois is losing quality horses to other states that pay out higher purses apparently is playing a major role in spurring the negotiators on.
Of course, the state’s riverboat casinos then could want their own piece of the pie. That could wind up making the bill too heavy. Whether anything will ever come of this is anybody’s guess at the moment, as usual.
The Senate Democrats don’t seem too excited yet because they’ve seen Madigan kill off gaming bills countless times. Madigan did reportedly have a meeting with proponents a few weeks ago in Chicago, and the House Republicans are participating in the talks. Because Madigan often cuts out the Republicans, that’s a very positive sign.
One difference this time around could be the bill’s sponsor. Burns dealt with numerous complicated negotiations back when he was a high-level member of the Senate Democratic staff, including a massive gaming bill. His fresh approach certainly is drawing a lot of Statehouse respect.
Also, Quinn said in December that the state ought to take a look at slots at tracks. That’s heartening to proponents.
The new proposal would inject about $300 million almost immediately into the capital projects program. And that’s driving a whole lot of interest.
But then there’s the final hurdle: public opinion during an election year. Will that much gaming expansion in such a short period of time be rejected by the public - particularly when the rest of the state’s budget is such a disaster?
- shore - Monday, Mar 8, 10 @ 9:51 am:
This was a big deal and the source of 4 years of fighting between the former governor Robert Ehrlich and their democrat house speaker michael busch. I don’t pay attention very closely to such matters, but if someone is looking at a case study for the debate, there’s no better state for that.
- wordslinger - Monday, Mar 8, 10 @ 10:05 am:
How about O’Hare and Midway? Crammed flight schedules cause delays, leaving more time to play the slots. Business creating business.
- Chicago Cynic - Monday, Mar 8, 10 @ 10:23 am:
This could be a good idea to replace the lost revenue in the capital bill from Video Poker. But it seems like it has to be one or the other. It’s not going to be both.
- 47th Ward - Monday, Mar 8, 10 @ 12:24 pm:
Good point Cynic, it can’t be both.
My recollection was the video gaming bill allowed for 65,000 machines statewide. I can’t imagine adding that number of slots at tracks. But even if they put 1,000 slots at each track and maybe some at the OTBs, collectively it might generate a similar amount of revenue as 65,000 video poker machines spread all over the place.
Has anybody done a revenue analysis on this?
- Buck - Monday, Mar 8, 10 @ 1:36 pm:
There are currently 1 Senate and 2 House Bills to place slots at tracks. The revenue could put the capitol projects back on track. The item being overlooked is the fact that Illinois Breeders and Owners are leaving for greener pastures or just plain leaving the industry.
Illinois Bred horses had the lowest crop production last year at 770 foals. If it drops to less than 700 this year. The Illinois program will be unsustainable in 3 years. It would mean a loss of thousands of jobs. This years foal production is projected at 500. That means we have a 2012 scenario, literally.
Nothing in these Bills offer incentives for the breeding industry. Once that is gone it will be just simulcast casinos where tracks used to be.
- Been There - Monday, Mar 8, 10 @ 2:57 pm:
===Nothing in these Bills offer incentives for the breeding industry====
Not true Buck. Plenty of incentives in all three bills.
- steve schnorf - Monday, Mar 8, 10 @ 3:10 pm:
I’m sure it won’t bother the boats if a few thousand slots go to tracks, though I suppose they might insist that the tracks float on water (probably navigable)
- Moving To Oklahoma - Monday, Mar 8, 10 @ 3:45 pm:
It would seem that there would only be so many gambling dollars to go around. I worry that the projected revenue off this latest social ill money grab will fall far short of expectations.
Also, I dont see the need for all these capitol projects everyone is talking about. The roads I drive on are in good shape. The bridges are not falling in. This states infastructure isn’t falling apart from what I have seen. Lets pay off debt with these revenues if we are going to pursue them.
- Rich Miller - Monday, Mar 8, 10 @ 3:47 pm:
Moving, how do you know the bridges are fine? Also, many of the roads I drive on suck.
- Rich Miller - Monday, Mar 8, 10 @ 3:49 pm:
…Adding… Every report I’ve seen on our infrastructure agrees with me, by the way.
- Will County Woman - Monday, Mar 8, 10 @ 4:24 pm:
The MAP Grant needs to be eliminated, for the time-being. I though Quinn understood at least that much when he was forced into having to hustle to make good on the 2009-2010 schol year MAP Grant obligations. But, I guess he doesn’t get it.
http://www.suntimes.com/news/2089498,CST-NWS-aid08.article
- Will County Woman - Monday, Mar 8, 10 @ 4:25 pm:
sorry, i posted the above on the wrong thread here.
- wordslinger - Monday, Mar 8, 10 @ 6:34 pm:
What’s the problem with Midway and O’Hare? It’s been so long, I’ve forgotten.
- fed up - Monday, Mar 8, 10 @ 7:30 pm:
Wordslinger
Midway and Ohare would be great for slots and video poker. Just have to get the machines in before all the convention buisness leaves for better locations.
- Insider - Tuesday, Mar 9, 10 @ 12:33 am:
Horse racing is going downhill so first they get the 3 percent gift from the riverboats (molaro money)now they want slots? greedy OLD rich guys
- insideriswrong - Tuesday, Mar 9, 10 @ 8:42 am:
The tracks support education in Illinois. A small percentage goes to the owners.
- Cherokee - Tuesday, Mar 9, 10 @ 8:47 am:
Rick, we believe in a slot bill if all three breeds were included. But they are not. Quarter horses have been left out of all slots bills. Owners and trainers are leaving the State that they live in to make a living. We have seen an increase of 2.8% wagering which is better than most. Why is this? Is this discrimination? We cannot back this unless quarter horses are included. Contact me and I will tell you more.
- Insider - Tuesday, Mar 9, 10 @ 3:28 pm:
small percentage?????? yep that`s why the same family`s have had a monoply on horse racing in Illinois for over 100 years. private jets and all!! insider is wrong MUST be related to an owner