State Fair racino in the mix
Wednesday, May 25, 2011 - Posted by Rich Miller
* Rep. Lou Lang is quite good at putting together solid, complicated, controversial bills. He’s not quite as good at actually passing them…
Rep. Lou Lang, D-Skokie, formally began his yearly push for a major gambling expansion but acknowledged he’s not sure he has the votes to pass it.
The latest version, which could be heard this week, would put casinos in Chicago, Danville, Rockford, northern Lake County and a yet-to-be-determined location in the south suburbs. Existing casinos would be allowed to expand gambling positions and horse racing tracks would be allowed to operate slot machines. Slots also would be installed at O’Hare International and Midway airports, and a new “racino” would be built at the state fairgrounds in Springfield.
“I can’t tell you today whether I have 60 votes to pass this bill,” said Lang. “But I can tell you it’s the right thing to do.”
* More on that State Fairgrounds racino…
Mayor Mike Houston said he supports having horse racing and slot machines in Springfield.
“Anything that would promote the use of the fairgrounds and generate revenue and excitement is certainly something that would be good for the city of Springfield,” Houston said. […]
“The money would go to the fairgrounds, help 4H, FFA, go to funding infrastructure for the fairgrounds,” Poe said last week. Fairgrounds maintenance funding has been cut in budget proposals passed by both the House and Senate this year. […]
“It would help save the horse industry in Illinois (if gambling expansion passes),” Poe said. “Right now, they’re all moving out, for the fact that the purses (money paid to owners and winners) have all gone away.”
It’s not a new proposal, but year-round gaming would most certainly change the character of the fairgrounds.
* Downsides…
Opponents have argued that both the casino and horse racing industries in Illinois have seen clear declines in recent years, so adding more gambling competition could only hurt existing casinos.
And while some lawmakers could be convinced to support parts of a gambling package — slots at Arlington Park for example — a proposal that includes so many new wagering options often draws opposition.
Rep. Tom Morrison, a Palatine Republican whose district includes Arlington Park, said he isn’t sure he’d support slots at racetracks but said he’s sure he wouldn’t support a proposal as big as Lang’s.
“I do not support a massive increase of gambling in Illinois,” he said.
* Odds…
Former state Rep. Bob Molaro, who represents the horse-racing industry, said Lang’s bill has a 50-50 chance of passing, because “the time is now,” and Illinois needs that extra influx of revenue.
“You’re talking about an extra $400 (million) to $500 million just from (a) Chicago (casino) going to the state treasury, education or debt relief — and that’s something that we can’t pass up,” Molaro said.
* Related…
* VIDEO: Rep. Lang on gambling expansion
- The Captain - Wednesday, May 25, 11 @ 6:01 am:
They need to put more betting windows than just the one in the Bud tent. That line gets ridiculous, and there’s clearly a demand.
- JayKing - Wednesday, May 25, 11 @ 6:27 am:
Morrison’s comment is telling in that it telescopes where Arlington Park, and by extension, the bill is going. Lobbyists for all of the allied interests have long thought that Arlington Park has a history of publicly supporting the racino bills, but quietly working behind the scenes to kill them. The only other thoroughbred track in Northern Illinois, Hawthorne, is barely hanging on. Earlier this past season, Hawthorne had to cancel a race day because it didn’t have enough horses to fill the field. Arlington isn’t in as bad of shape because it has a nicer facility, is located in a somewhat more upscale area than Hawthorne, gets the better Summer race dates and most importantly, has the resources of its parent, Churhill Downs, behind it. This means that if Arlington is patient and keeps quietly killing off the annual racino bill, it will eventually have a monopoly on thoroughbred racing in Northern Illinois. Couple this with the fact that the annual gambling bill, by its very nature, isn’t a difficult target to kill. Appeasing the conflicting goals of all of the stakeholders has always resulted in a Christmas tree bill. The more the bill has in it, the more there is available for legislators to oppose. God bless Lou Lang for his persistence. I think that he either knew that he didn’t have the votes to pass the bill in the House last year or wouldn’t have gotten it signed by the Governor. My guess is that he didn’t call it to save members of his caucus from having to go on the record about gambling during an election year for a bill that would fail. And he caught a lot of flak about it from all of the stakeholders. For this year, I’m betting that he knows that this bill doesn’t have the votes either, but he is moving forward to get the racing industry off his back from last year.
- Gregor - Wednesday, May 25, 11 @ 7:08 am:
I don’t mind the extended gambling opportunity during the actual state fair, but year-’round gambling at the fairgrounds takes the character and purpose of the fairgrounds in a dark direction I’d rather it not go. I also believe the gambling expansion is only going to be dividing up the same slices of a shrinking pie. Such that the state won’t see much more revenue out of it, only the sponsors of the expansion will.
- Cincinnatus - Wednesday, May 25, 11 @ 8:11 am:
From Lou Lang’s mouth to God’s ear. This is about as free market a proposal as anyone can have.
- downstate hack - Wednesday, May 25, 11 @ 8:59 am:
This bill makes sense. If people want to gamble let them, and the revenue is sorely needed.
- reformer - Wednesday, May 25, 11 @ 9:01 am:
Back in the 1990s, Ray Poe campaigned on a platform of getting voter approval at referendum for gambling expansion. That was then.
- Plutocrat03 - Wednesday, May 25, 11 @ 9:08 am:
If the expansion of gambling is powerful enough to save industries, lets put slot machines in the lobby of every Sears store as well as any other struggling business.
It will save a lot more jobs that way.
- winco - Wednesday, May 25, 11 @ 9:20 am:
I think JayKing must be right. How can Arlington Park’s state rep. “isn’t sure” whether he supports slots at the track?! How can you not be asked that question in a campaign?
- wordslinger - Wednesday, May 25, 11 @ 9:24 am:
The whole country has gone legalized gambling crazy since Atlantic City came on line in 1976 — making it only the second place in the nation outside Nevada with legal gambling. Now you can’t swing a cat without hitting a casino virtually everywhere.
Of course, there were always illegal casinos (still are with the video poker machines). But the legal stamp of approval certainly is a cultural change in my lifetime.
- Johnny USA - Wednesday, May 25, 11 @ 9:30 am:
Awesome!
If Lang’s bill passes there will be no such thing as ‘gambling exapansion’ any more….Gambling will be as prevalent in Illinois as AT & T stores or Starbucks.
We’ll have to work on legalizing prostitution and drugs to get our next fix. (Which is fine with me)
- Yellow Dog Democrat - Wednesday, May 25, 11 @ 9:32 am:
Glad to see slots at Midway and O’Hare.
Add betting to the raceways in Joliet and
Collinsville!
- Because I say so - Wednesday, May 25, 11 @ 9:33 am:
=If the expansion of gambling is powerful enough to save industries, lets put slot machines in the lobby of every Sears store as well as any other struggling business.=
Stupid logic. People don’t go to Sear’s to place a wager. People at race tracks are there to gamble so why not give them more options and keep the industry alive in Illinois?
- Capra Corn - Wednesday, May 25, 11 @ 9:41 am:
“They need to put more betting windows than just the one in the Bud tent. That line gets ridiculous, and there’s clearly a demand.”
There’s clearly a demand for the Bud or the betting, Captain? My bet is that more wagering stations means more demand for both! Go Lou!
- Cincinnatus - Wednesday, May 25, 11 @ 9:58 am:
Capra Corn,
I can envision no scenario where there should be more demand for Budweiser.
- D.P. Gumby - Wednesday, May 25, 11 @ 10:44 am:
Wait, Lou, you forgot slots at rest stops on the Interstates. “Slots @ stops!”
- Plutocrat03 - Wednesday, May 25, 11 @ 11:02 am:
I bet dad would love to play some slots while mom does her shopping.
Have you ever been to Vegas? There are slots in the grocery stores, gas stations, pretty much everywhere. Is that the model we want here?
Government picking and choosing which industry needs “saving’ and how that is to be done is what is the stupid thing here. Horse racing is a dying industry throughout the country. It needs to stand on its own two (or four) feet or follow the whale oil lamp manufacturers into oblivion.
- Palatine - Wednesday, May 25, 11 @ 11:12 am:
I personnaly don’t care for my Rep, but this time he’s right. Gambling removes money from the local economy.
- CircularFiringSquad - Wednesday, May 25, 11 @ 11:22 am:
No one was counting on Morrison anyway, but let’s wait until Mr. D (as in D Industres drop a dime on Billroads Cross)
BTW what would Morrisson prefer to see on the vacant lot that once housed the Home of the Arlington Million. Churchill Downs will not keep a money lser open for long.
- winco - Wednesday, May 25, 11 @ 11:25 am:
I like the idea of slots at rest stops. And then of course tollway oases would be logical.
But that is child’s play. I propose a gambler’s lane at the tollbooths. A separate i-pass lane where, in addition to your 40 cent toll, you are buying a $2 lottery ticket. They can email the numbers to your i-pass email. Or maybe instead of a lotto ticket, you get a $2 50-50 raffle ticket, with a winner drawn at a set time every day. I suggest rush hour with numbers announced after the traffic reports. That would be awesome.
- AC - Wednesday, May 25, 11 @ 11:28 am:
The state needs money, and a tax on people who are bad a math seems like a good way to raise a little. Gaming at the fairgrounds would probably be the most exciting thing to happen to the north end of Springfield since the State Fair. Of all the bad ideas to come out of proposed legislation, I don’t think this is one of them.
- Yellow Dog Democrat - Wednesday, May 25, 11 @ 11:43 am:
== a tax on people who are bad a math ==
I don’t know if you’ve looked at our statewide test scores lately, but that’s basically everybody.
On a completely different topic, does anyone know about the market viability of a casino in Danville?
The ideal casino customer is someone who lives within 30 minutes and loses $100 a week, every week.
Indianapolis is 90 miles away and the Danville “region” hardly seems to have the population needed to draw investment in a major casino.
- Because I say so - Wednesday, May 25, 11 @ 11:49 am:
The fact remains that out of state casino’s are filled with Illinois residents. All you have to do is look at the parking lots and see the plates. It’s revenue that is flowing out of Illinois that is much needed here in our state.
- Paul S. - Wednesday, May 25, 11 @ 11:53 am:
Gambling is not the answer that this person is making it out to be. This is a ridiculous bill and one that screams of laziness from the GA and Lou Lang himself. Instead of making leadership decisions we are just going to sell our soul out for more and more gambling. Gambling is the savior to ridding people of their money instead of providing jobs.
I am beginning to believe that Lou Lang only represents drug growers (medical marijuana) and the gamblers. I guess that is the only people he represents in his district. Guess what, the most pressing thing is jobs Lou!!! Try working on some good economic development.
- downstate hack - Wednesday, May 25, 11 @ 12:00 pm:
—–Government picking and choosing which industry needs “saving’ and how that is to be done is what is the stupid thing here. Horse racing is a dying industry throughout the country. It needs to stand on its own two (or four) feet or follow the whale oil lamp manufacturers into oblivion.—–
Gee, I guess GM and Chrysler should be out of business too. Giving the majority of our gambling revenue to massive casinos run by out of state interests doesn’t make sense. Just look at the revival of the Florida State horse racing industry and the jobs created by relatively small racinos at Calder and Gulfstream.
- Cincinnatus - Wednesday, May 25, 11 @ 12:06 pm:
- downstate hack - Wednesday, May 25, 11 @ 12:00 pm:
“Gee, I guess GM and Chrysler should be out of business too.”
Correct.
- reformer - Wednesday, May 25, 11 @ 12:27 pm:
Does the state GOP platform inform any Republicans? It opposes gambling expansion.
- Thoughts... - Wednesday, May 25, 11 @ 12:28 pm:
The only beef I have with this is why a racino instead of a casino in Springfield? I’m here a lot but I’m not going out there to play slots. Boo. Now, if there were poker room…
- OneMan - Wednesday, May 25, 11 @ 12:29 pm:
The lottery is a much harsher tax on people who ‘are bad at math’ than a casino is. But at some point we either are going to have to say no-mas or completely open it up.
More casinos, slots at race tracks, video poker where does it end (if ever)?
- reformer - Wednesday, May 25, 11 @ 12:30 pm:
Because I say so
Two Indiana tracks that got slot have nevertheless filed for bankrutcy. So racinos are no guarantee for horse racing.
- Cincinnatus - Wednesday, May 25, 11 @ 12:43 pm:
Racinos now have been legalized in 11 states, and they’ve proved lucrative both for track owners and for state governments, who receive a portion of the newly created revenue. West Virginia, which has four horse and greyhound dog tracks supplemented by slot machines, has had the most success–last year the facilities generated $975.99 million, $445.59 million of which was earmarked for state education costs, tourism, and senior citizens. At least five states–Indiana, Kansas, Kentucky, Maryland, and New Hampshire–have recently proposed legislation to permit slots at racetracks.
Read more: http://www.kcci.com/money/13451720/detail.html#ixzz1NO4Pcb00
- OneMan - Wednesday, May 25, 11 @ 1:22 pm:
The real basic problem here is gang, at some point we are going to get gaming saturated. I don’t know about you but I spend about $50 a year at casinos in this state tops (and I live 10 minutes away from one) so for me it isn’t an opportunity issue, it’s a I don’t want to do it much issue.
Are there that many people in this state who want to gamble but can’t because it isn’t close enough? I get the Chicago near south suburbs argument, build a casino for city folks that is closer than any Indiana boat.
But there are a finite number of folks who are willing to gamble enough to make it worth anyone’s financial time. It would be interesting to see how close we are to that point.
- Cincinnatus - Wednesday, May 25, 11 @ 1:28 pm:
One Man,
The market would handle the saturation issue, no? That assumes no subsidies from the government, of course. And barring subsidies and bailouts, the revenue would be a benefit to the state. The only issue left is the nanny-staters who think that people are to irresponsible to choose whether or not to drop their hard-earned at a casino.
- Bigtwich - Wednesday, May 25, 11 @ 1:47 pm:
==I can envision no scenario where there should be more demand for Budweiser.==
July?
- 47th Ward - Wednesday, May 25, 11 @ 1:50 pm:
===This is about as free market a proposal as anyone can have===
Really? It sounds to me like the government is awarding franshisees, not allowing free competition. Can I open my own casino?
Your comment makes me wonder if it’s time for you to turn in your Adam Smith Fan Club membership Cinci.
- Cincinnatus - Wednesday, May 25, 11 @ 2:04 pm:
Forgot to type “in Illinois” in my comment, Word. My Adam Smith Fan Club membership is intact. Which Marx club are you in, Karl or Groucho?
- 47th Ward - Wednesday, May 25, 11 @ 2:11 pm:
Let’s leave Wordslinger out of it Cinci. Maybe your Evelyn Wood membership should go too.
- Cincinnatus - Wednesday, May 25, 11 @ 2:35 pm:
Sorry Wordslinger, the comment was misdirected.
47th,
Funny how supporting a reasonable compromise proposal by Lang to save an over-regulated industry turns into some sort of attack on the free market from you and a personal attack on me.
The government has no place regulating the gambling industry. Period. You’re right that you should be allowed to open a casino if you follow local ordinances followed by other businesses like restaurants in your location. Why does the state government get to insert itself into the local equation on a legal enterprise? Either ban gambling or allow it to be subject to the market and local control. The current system allows only a favored few to open gambling establishments, and Lang’s proposal at least allows for more players in the game, which it is unclear from your comments you either do or don’t support.
- wordslinger - Wednesday, May 25, 11 @ 3:01 pm:
–The government has no place regulating the gambling industry. Period. You’re right that you should be allowed to open a casino if you follow local ordinances followed by other businesses like restaurants in your location–
I’m sure Tony Accardo and Joey Lombardo would agree.
Who writes “local ordinances” anyway? The Fuller Brush man?
Cincy, you have a strange and pure ideology (to what purpose, I couldn’t guess) that bears no resemblance to reality or historical experience.
Are you allowed to go outside, or would you be fatally contaminated by the real world?
- 47th Ward - Wednesday, May 25, 11 @ 3:02 pm:
Lighten up Cinci. I quoted you, that is hardly a personal attack. And I wasn’t attacking your point either, just your use of the free market analogy where it clearly doesn’t apply.
For someone who comments here so often, I would have guessed you’d have thicker skin by now.
- Ghost - Wednesday, May 25, 11 @ 3:28 pm:
=== Slots also would be installed at O’Hare International and Midway airports ====
I have been ranting for some time about this making the most sense in terms of revenue generation. This will allow us to capture out of state money from travelers instead of just canibalizing off our own population.
I still say if horse racing is so unprofitable let it die! why do track owners get to have mini casinos just because they are lucky enough to run a failing bussiness?? The purses have been shrinking as racing dies off, racing did no die off due to small purses. The cause and effect are reversed there.
lots of folks want casino licenses, we can auction off the licenses if we offer them for extra revenue, so why five them away to track owners. Let the track owners bid on a licnese like every other private business.
Casinos in convention areas were we have a lot of out of State travelers would be the next place to expand past airports. We want to capture out of State dollars, not just feed on ourselves.
- Plutocrat03 - Wednesday, May 25, 11 @ 3:50 pm:
When the Government awards a gambling license, to a person/entity, it nearly always makes that party extremely wealthy and grateful. Helps with the fundraising does it not?
I is a corrupt process through and through.
Have any of you folks worked with event planners? There are a lot of groups that shun cities with casinos because it hurts attendance at their event. With all the convention facility debt out there Chicago better mind it’s Ps & Qs and make sure the can afford to pay those hundreds of millions of dollars in bonds before that business goes belly up as well.
I see the greed, but the reality is that when the casinos are plentiful, they simply trade on the local population. The State takes a cut, the local government takes a cut and the operator (usually an out of state organization) takes the rest of the profit. The vast majority leaves the community. The local restaurants and entertainment venues lose access to the recreational dollar and dry up. Who wins?
- Because I say so - Wednesday, May 25, 11 @ 4:18 pm:
=I still say if horse racing is so unprofitable let it die! why do track owners get to have mini casinos just because they are lucky enough to run a failing bussiness?? The purses have been shrinking as racing dies off, racing did no die off due to small purses. The cause and effect are reversed there.=
I’m not in the industry but it is my understanding that many of the top trainers, drivers and owners have moved their racing operations to various east coast states that do have slots at tracks becasue the purses are bigger. Again, it is my understanding that is a main reason the horse racing industry in Illinois is struggling.
- OneMan - Wednesday, May 25, 11 @ 4:31 pm:
Cincinnatus, yeah the market would end up making the call, that doesn’t change the fact we might be trying to save the states finances in a way that might not be sustainable.
- Nanny State, Nanny #1 - Wednesday, May 25, 11 @ 6:25 pm:
Gee, do you think anyone would even want to open a casino if a smokefree state? According to the friends of casinos, the industry is loosing money because the state is smokefree. Lou, why even bother?
A disclaimer from health groups: If you expand gaming in a smokefree state, you know what you’re getting into. No takebacks later!!!
- wordslinger - Wednesday, May 25, 11 @ 7:12 pm:
–Gee, do you think anyone would even want to open a casino if a smokefree state? According to the friends of casinos, the industry is loosing money because the state is smokefree.–
That’s really backwards thinking.
The casino folks claim that 20% of their patrons smoke. What’s that tell you? Eighty percent of casino patrons DON’T smoke.
You don’t have to be a marketing wizard to see the potential of advertising smoke-free casinos in the border markets. That is, if the Illinois casinos would invest and upgrade from the low-rent carpet joints they are now.
I know bar owners who went smoke-free before the Illinois ban who were honked when their competitive edge was taken away from them.
As a smoker, I can tell you, times have changed. Non-smokers, the great majority of citizens, increasingly and emphatically will not tolerate smoking in their presence.
That’s not Nanny-statism. Smokers like myself don’t have a right to pollute the air of those around them. It’s not 1970 anymore.
I miss having the general opportunity to have a smoke and tip a beer in a bar (you do find the few places where you can do it), but I understand and can deal with it.
- Michelle Flaherty - Wednesday, May 25, 11 @ 8:31 pm:
I assume all these anti-gambling people will similarly oppose Cross’ pension plan, which would force public employees to gamble their retirement on the stock market.
- Nanny State, Nanny #1 - Wednesday, May 25, 11 @ 8:53 pm:
Thanks, wordslinger! I agree!
- Tack - Wednesday, May 25, 11 @ 9:04 pm:
Okay folks. The reason Indiana tracks are having problems is because they insist on running against each other at the same time. When Indiana Downs is running Thoroughbreds, Hoosier Park is running harness racing and vice versa. Churchill Downs Inc. recognized the potential problem and that’s why they sold Hoosier Park. Indianapolis simply isn’t big enough to support two tracks running against each other. Chicago is not Indianapolis. Chicago can pull this off because it has so many more people to draw from. Fairmount Park, Quad City Downs and the State Fairgrounds are the only game in town, so it shouldn’t be a problem for them either. C’mon, the state of Illinois needs the money.
- Plutocrat03 - Wednesday, May 25, 11 @ 9:39 pm:
The water in the stock market is fine. All those governmental pension dollars should be swimming with my dollars. Might make those governmental types more sensible when attacking private enterprise.
The gaming expansion is simply a bailout to the connected rich track owners to make them richer.
- wordslinger - Wednesday, May 25, 11 @ 9:46 pm:
–Might make those governmental types more sensible when attacking private enterprise.–
When did that happen?
TARP? AIG? GM and Chrysler (all now a profit to the taxpayer).
Free money for banks at the Fed discount window (how are the banks and insurance companies doing these days?).
And, on the state level, $230 million and counting this fiscal DCEO tax breaks.
Where does one sign up to get attacked, anyway?