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Gaming still on the table, but future, as always, is doubtful

Tuesday, Sep 18, 2007 - Posted by Rich Miller

* Senate President Emil Jones said yesterday that he plans to call a vote on the capital projects package today. It would be funded with three new casinos

The latest plan reportedly involves placing a land-based casino in Chicago and adding two more riverboat casino licenses at unspecified locations. Also, existing casinos will be allowed to expand their operations.

Money from gaming expansion would allow the state to embark on a multibillion-dollar capital program for roads, bridges, schools, mass transit and other projects.

* But even if it passes the Senate, which is not at all assured yet, the proposal faces a dim future in the House…

“His comments that there is not much support for a big gaming expansion in the House remains unchanged,” Madigan spokesman Steve Brown said Monday. […]

“I think all four leaders and the governor have to be on the same page for this to work,” [
Sen. Ira Silverstein, D-Chicago] said. “I think it’s pretty good (bet) it’s dead on arrival in the House.”

* More on the gaming proposal…

“I don’t think I’d be placing any wagers on it at this time,” said Sen. James DeLeo, D-Chicago.

* The mayor is not yet on board. The Tribune went conservative with its explanation today…

A City Hall source said Mayor Richard Daley has not signed onto the casino package, although he is studying it. The mayor has been open to a land-based casino in Chicago under the right circumstances, including an assurance that the city would get a share of the proceeds that would make hosting a casino worth the trouble. But the mayor has not signed on to any riverboat casinos.

* Still more

State Sen. James Meeks, D-Chicago, said he can’t support a plan that relies on money generated by adding new casinos in the Chicago area.

“I’ve never voted for a gaming bill. So I’m 100 percent sure I won’t be voting for it if that is the solution,” said Meeks. “I think the solution should rest in an income tax increase.”

Complicating the situation are ongoing disagreements between Blagojevich and House Speaker Michael Madigan, who was not included in Monday’s meeting.

“How do you leave out the speaker of the House in this discussion?” Watson asked.

       

15 Comments
  1. - Jack - Tuesday, Sep 18, 07 @ 9:02 am:

    New casinos are a bad idea. MAYBE expanding positions at existing casinos might be okay, but if this is our way of funding mass transit, we are in big trouble. Why not just put slot machines on all Metra trains? Notice I didn’t say the CTA trains as long as Daley and the City of Chicago control it.


  2. - Truthful James - Tuesday, Sep 18, 07 @ 9:03 am:

    There has to be an independent body subject to public scrutiny for each and all of the Illinois casinos.

    Think of them as Indian tribes.

    I propose the Metropolitan Pier, Convention Center and Office Building Authority in separate Counties to be the owner of each license upon their renewal, with the Management being fee contracted.


  3. - Squideshi - Tuesday, Sep 18, 07 @ 9:59 am:

    I notice that Meeks is using the establishment-friendly term “gaming” instead of “gambling.” Gambling is a temporary and unreliable band-aid that does not fix the structural problem.


  4. - Super Mega - Tuesday, Sep 18, 07 @ 10:02 am:

    New casinos are not the answer. Fix the spending. CTA has so many managers working for it and none of them have anyone to manage.

    Since the state is amenable to privatizing certain state owned entities (buildings, tollways, etc.), why not privatize the CTA?

    That’s the solution to mass transit funding, not throwing more money at the problem. The CTA has shown that it is inept at running itself, let’s turn it over to someone else that will actually work for the people.


  5. - capitol view - Tuesday, Sep 18, 07 @ 10:20 am:

    I’m waiting for someone to propose putting slot machines at RTA/CTA stations — one three dollars ride gets you two pull credits on a “one armed bandit” before you walk to the train…


  6. - Fan of the Game - Tuesday, Sep 18, 07 @ 10:30 am:

    I’m not averse to more casinos in Illinois; I wouldn’t mind having a lot more spread over the state. But gambling is a spastic enterprise, and funding should be based on more stable revenue sources.


  7. - Mr. Ethics - Tuesday, Sep 18, 07 @ 10:33 am:

    Wasn’t this Topinka’s plan?


  8. - Ghost - Tuesday, Sep 18, 07 @ 10:39 am:

    So where is the money that expnaded gameing will bring in coming from? Just making somthing bigger does not directly translate into increasedpurchases/gameing?

    Are we going to attract more out of state gamblers, or are we financing our future on the hopes that more people will take non-disposable income and hand it over in the hopes of getting rich quick? I notice no one is talking about expanding these facilities to add in stage shows and entertainment las vegas style.

    Statistically a large protion of gameing revenue comes from low income families that can not afford it. So to provide health insurance and transprotation for those with limited incomes we are enlarging a buisness that seeks to prey upon their need for money to fund these benefits? Are we not ultimaly robbing peter to pay paul?

    I doubt the revenue gains will be what is projected, so that creates an even greater issue. We want to be a mini las vegas without the entertainment or culture, just the fevered depserate plunking away with theiur rent money pursuing the flase lure of improving their condition. What a fantastic State we have become.


  9. - Leroy - Tuesday, Sep 18, 07 @ 10:44 am:

    “Money from gaming expansion would allow the state to embark on a multibillion-dollar capital program for roads, bridges, schools, mass transit and other projects.”

    Ok, so we get all this shiny new ’stuff’. What happens when inflation causes all this new ’stuff’ to become old stuff that needs maintenance $$, while casino revenues remain flat?


  10. - Angry Chicagoan - Tuesday, Sep 18, 07 @ 12:15 pm:

    Super Mega — they tried that in England. Government subsidies for rail quadrupled after privatization while the fares went up at more than twice the rate of inflation. Under government ownership intercity passenger services made money and London commuter networks were break-even; only the rural services and some freight services lost money. Ridership has gone up despite the fare hikes but only because they’re doing almost nothing about roads.

    Don’t necessarily think privatization will save money. Fact is the system is broke and we’ll pay for it one way or another — either through unbearable traffic congestion, economic decline, or an increase in taxes and fares for transit.


  11. - Gregor - Tuesday, Sep 18, 07 @ 1:00 pm:

    More casinos will not be the answer. They are a vacuum cleaner sucking capital out of our state, capital that should be invested in banks, in buildings, in infrastructure, in education and personal betterment. They are a tax on the poor and those who are poor at math. They create no wealth, only suck it away, what few jobs they generate are low wage dead-end service jobs. They are a magnet for organized crime. And the sponsors make the HUGE assumption that the profits will actually be applied to the stated deficits. Dig up Giorgi’s corpse and ask him how eduction is doing with lottery money.

    The problems with CTA and roads and the other capital projects are structural and gaming/gambling is at best a temporary and unreliable solution that causes more harm than help. What is needed is to start with a clean sheet of paper and set up the taxes and other revenue streams logically. Not politically. What the governor is offering RTA/ CTA is like giving somebody with the D-T’s a bottle of Absinthe to calm their nerves.


  12. - Garp - Tuesday, Sep 18, 07 @ 1:15 pm:

    They should put one land based casino in Chicago catering to out of town conventioneers and tourists. This amenity would help attract and keep convention business and expand Chicago’s growing tourism. The majority of the profits would come from out of state and foreign countries. The funds should be used to enhance the downtown area including mass transit services around the loop.

    The idea of funding vital services through expanded gambling is ludicrous. They might as well give funds generated from more riverboats back to the poor because that is who they are taking the money from.

    The Governor’s plan has no chance of passing and is a smoke screen so he can say his proposal was shot down. The only solution is to raise fairs and cut services or override the Governor.

    The Governor’s lack of leadership is appalling.


  13. - Super Mega - Tuesday, Sep 18, 07 @ 3:45 pm:

    Angry Chicagoan-

    I would add that you would have to have a reasonable system in place to ensure that fares to do not increase at a ridiculous rate.

    At the same time, what’s happening with government subsidies right now? We have no one who is accountable running the CTA, the management is primarily composed of Aldermen’s nephews that just got out of school and making $75,000 a year at the transit agency.

    With a private company, they will get costs under control, cut down the patronage, provide better rolling stock, and be contractually obligated to provide quality service without outside influences interfering in the process.

    Something drastic needs to be done as the City of Chicago has proven it is not up to the task.

    Kinda like when the federal government had to take over the CHA…


  14. - Doug Dobmeyer - Tuesday, Sep 18, 07 @ 6:07 pm:

    Once more we go down the casino road. It is not the answer for Illinois or anywhere else either.

    The bigger question is who are the political leaders protecting by not activating the tenth license.

    This license originally in Galena then was slated for Rosemont by insiders. Well that failed. Lisa Madigan derailed the effort to have a crooked casino open.

    The time has passedc when that casino should be opened somewhere in Illinois outside of the City of Chicago. Illinois has lost more than a billion dollars over the past ten years.

    The question is, why are people protecting some interests and not opening this license to bid, collect $300-500 million and taxes after that. Who are they protecting?

    Doug Dobmeyer


  15. - Angry Chicagoan - Tuesday, Sep 18, 07 @ 10:15 pm:

    What kind of private company, Super Mega? Something like the Hired Truck program?

    The federal takeover idea sounds a lot more interesting, but you still don’t address the fact that transit in Chicago is cheap and nasty. We’re like New York in the 1980s except minus the graffiti. How did they deal with it? Tens of billions of dollars in bonds.

    Huberman is rooting out parasitic deadwood in much the same way as an avid gardener roots weeds out of a vegetable patch. But we won’t see good produce at the end of it without some extra soil and some fertilizer. We have to face up to the fact that we’ve had 20 years of underfunding COMBINED with ten years of Frank Kruesi COMBINED with Chicago patronage. I’d wager that as far as union positions are concerned the patronage is a smaller factor than the Kruesi/management factor or the underfunding factor. We’re starting from a point where business process reengineering is a necessary but NOT sufficient condition, and new funding is also a necessity.


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