On the other hand…
Thursday, Sep 12, 2019 - Posted by Rich Miller
* Tribune…
As Illinois embarks on a massive gambling expansion of up to six new casinos and the addition of slot machines and table games at horse tracks, revenue from the state’s 10 existing casinos last year dropped more than 3%, continuing a decadelong slide.
The loss in revenue from casinos, however, was more than offset by a continued increase in the state’s take from video poker and slot machines at bars, restaurants and truck stops, according to a report out Thursday from the legislature’s bipartisan Commission on Government Forecasting and Accountability.
Overall, the state brought in more than $1.4 billion in tax revenue from casinos, video gambling, horse racing and the lottery in the budget year that ended June 30, up 3.5% from the previous year, according to the report.
But the report, put out annually by the commission, raises concerns about whether new betting options authorized in the gambling expansion legislation Gov. J.B. Pritzker signed in June — including new casinos in Chicago, Waukegan, the south suburbs, Rockford, Danville and southern Illinois — will continue to draw revenue away from the existing casinos.
The full report is here.
Waukegan is just 8 miles from Wisconsin, Rockford is 17 miles from the Wisconsin border, Danville is 10 miles from Indiana and tons of Chicagoans and south suburbanites travel to Indiana to gamble. Also, Chicago never opted in to video gaming.
The idea here is to bring in some gambling money from out of state, stop bigtime gambling money from leaving the state and tap into a huge market with no current legal gambling options. It may not work, but that’s the idea.
- Lynn S. - Thursday, Sep 12, 19 @ 6:11 pm:
I live not far from Danville.
I do not see a scenario where a casino succeeds in Danville.
I’m not convinced people will come to Danville to gamble, whether they are in Indiana or Chicago.
I have absolutely no doubt the hard-working, tax-paying citizens of Danville will be fleeced six different ways to make this boondoggle happen, and to pay back the investors putting money up to get the casino going.
- Been There - Thursday, Sep 12, 19 @ 6:59 pm:
As long as they don’t over extend themselves most of the new places should do ok. Not great (except for Chicago) but most of the old revenue models had casinos making buoku bucks and that is what was expected. So hedge funds overextended themselves and built huge places. Chicago needs a mega place. But the others just need to be above average.
- Captain Obvious - Thursday, Sep 12, 19 @ 7:02 pm:
It might could work. Or it might be over saturation with significant cannibalization. Or somewhere in between. I hope it works. I don’t gamble at all so if the state can get more revenue without its sticky paws in my pocket I am on board.
- Ebenezer - Thursday, Sep 12, 19 @ 7:06 pm:
The state will pick up some much needed revenue. There will be some winners and maybe more losers among the incumbents, but I have a hard time getting worked up over that.
- Quibbler - Thursday, Sep 12, 19 @ 10:28 pm:
I don’t follow these debates like you all do, so honest question: does anyone ever raise any question whatsoever about the morality of trying to balance the budget on the backs of lonely people and senior citizens, rather than the Pritzkers and Rauners of the world? Or is it all just debates about site placement?
- Minority Casino Patron - Thursday, Sep 12, 19 @ 10:35 pm:
The problem I have with all the “decline” of existing gaming in Illinois is no mention of the millions (maybe billions) of profits that have been made by existing casinos. For example, in October, 1994 Grand Victoria Casino in Elgin, IL (50% owned by the Pritzker Family) paid $25,000 for a license ($5,000 renewal). They spent maybe $50 million to build and 20% tax rate and here we are today 25 years later (millions and maybe a billion dollars of profits later) and we hear a decline of the existing gaming areas. Yeah ok!!
- Dupage Bard - Thursday, Sep 12, 19 @ 11:23 pm:
@Quibbler- Lori Lightfoot said we can’t try to balance budgets on the backs of the rich.
So I guess ya gotta go this way?
- Da Big Bad Wolf - Friday, Sep 13, 19 @ 5:29 am:
Only lonely people and seniors like to go to casinos?
- Reality - Friday, Sep 13, 19 @ 6:08 am:
Like it or not the simple truth is the ban on smoking will continue to drive folks to Indiana. Just saying…..
- JS Mill - Friday, Sep 13, 19 @ 7:40 am:
I don’t understand why all of the new casino licenses don’t go to Chicago?
Real revenue growth will only come by attracting gambling tourism. We need to think Las Vegas not Wisconsin. Chicago has all of the other attractions, and then some, that Las Vegas has short of legal prostitution.
We are looking at this all wrong.
- @misterjayem - Friday, Sep 13, 19 @ 8:29 am:
“Chicago has all of the other attractions, and then some, that Las Vegas has short of legal prostitution.”
Although no one visiting the city could be blamed for thinking otherwise, prostitution is illegal in Las Vegas. Nevada Revised Statues 244.345.8; Clark County Code, Title 12, Chapter 12.08.015
– MrJM
- Iggy - Friday, Sep 13, 19 @ 8:51 am:
Given the choice between the Joliet casinos and the Horseshoe in Hammond, Im always choosing the shoe.
Drinks are cheaper, you can smoke indoors, and the floor is massive.
As an observation Illinois casinos are packed with the elderly gambling away retirement and social security. the Indiana casinos, have young people that are looking to have a good time with cheaper drinks and the ability to smoke indoors.
- Cronish - Friday, Sep 13, 19 @ 9:15 am:
Quibler, the Rauners and Pritzkers of the world already pay the vast majority of taxes. And no one is being forced to gamble.