Gaming roundup
Monday, Jun 3, 2019 - Posted by Rich Miller
* Zoom out…
The southern Illinois casino is going to Walker’s Bluff.
…Adding… The bill also authorizes up to 50 video gaming terminals during the Illinois State Fair in Springfield and up to 30 during the DuQuoin State Fair. Beer tents can have up to 10 terminals each.
* Overview…
The massive gambling bill that included a major casino in Chicago and smaller ones in the south suburbs and Waukegan also would open up slots for Chicago’s airports and the state’s horse racetracks, and legalize sports betting. It awaits Senate approval.
The Chicago casino would be privately owned, and the city would get one-third of all tax revenue from it. The casino would have up to 4,000 gambling positions — slot machines or seats at a gaming table — while other new and current casinos could increase their gambling positions from 1,200 to 2,000. It also would allow horse tracks to have 1,200 gambling positions.
For sports betting, licenses would go to all existing and newly authorized casinos as well as horse racetracks and sports venues with license fees ranging from $3.2 million to $10 million.
For the first year and a half, bettors would have to create an account at a licensed gambling facility and then could make deposits online afterward. After 18 months, three online licenses would be created at $20 million per license. Fantasy sports wagering firms could partner as an online vendor at casinos, racetracks or sports venues.
A lottery sports wagering program also would be created.
Sports leagues would not get any of the cut, and wagering on Illinois college teams would be prohibited by the legislation.
* Sports betting…
The bill, which the governor is expected to sign into law, grants retail casinos an 18-month head start on the mobile market. The casinos will be able to begin accepting bets almost immediately whereas all other entrants—such as DraftKings and FanDuel—will have to wait until late 2020 or early 2021 to begin operations. Eilers & Krejcik Gaming estimated that DraftKings and FanDuel accounted for 79 percent of New Jersey’s mobile betting market in April. Illinois will limit online-only sports books to three licenses, each to be sold for $20 million. Mobile betting is widely projected to capture at least three-quarters of the betting market.
DraftKings CEO Jason Robins criticized the bill on Twitter, writing, “While it is good to see sports betting bills passed, excluding DraftKings and FanDuel is like passing a ride sharing bill that excludes Uber and Lyft. Very disappointing that Illinois customers will not have the best options available to them for 18 months.”
While the leagues will not receive any kind of royalty or integrity fee, they will receive direct revenue from a provision requiring official league data for all in-play and prop bets. Illinois is now the second state to mandate this, following Tennessee’s new law in May.
Large sports venues such as the Bears’ Solider Field and the Cubs’ Wrigley Field would be able to apply for licenses to install betting kiosks on site. The only other current U.S. legislation to enable installations at stadiums, arenas, and ballparks is the one passed by the District of Columbia, though its regulations have not yet been finalized. Capitals, Wizards, and Mystics owner Ted Leonsis has championed legalized sports betting and plans to install a sportsbook at his Capital One Arena. Currently, the only sports venues where a fan can legally bet are the ones with mobile sports betting, such as in New Jersey and Pennsylvania.
More…
SB 690 enables the Illinois Gaming Board to issue six different types of licences to operators seeking to offer sports betting in the state: a master sports wagering licence, occupational licence, supplier licence, management services provider licence, tier two official league data provider licence, and central system provider licence.
Each license will be applicable to a certain service or offering in the state, with the fee for a master licence to be set at 5% of the holder’s total handle from the following calendar year, up to a maximum of $10m
* Tracks…
Additionally, the legislation permits a new harness track to be built in one of seven townships located within Cook County, which includes Chicago and both Chicago-area tracks. The new venue couldn’t be situated within 35 miles of either existing racing facility without the track granting permission. Harness tracks Maywood and Balmoral both ceased operations in recent years. Only a truncated harness meeting remains at Hawthorne. […]
The new legislation will fortify horse racing in the state because it specifies minimum racing dates for tracks that take on a casino license. If one casino license is issued to a Chicago track, that track must run 110 days the year it’s awarded, 115 the next, and 120 per year afterwards. If two casino licenses are issued to Chicago tracks those numbers rise to 139, 160, and 174. Fairmount would be required to run at least 700 races per year if it receives a gaming license. The legislation also boosts purses for Illinois-bred horses and monetary awards paid to the state’s breeders.
* Revenue…
Within the capital measure to fund vertical projects, which include buildings, such as schools and recreational facilities, $150 million would come from an increase in video gaming terminal taxes; $10 million from sports wagering revenue; $500 million from upfront license fees from casino and sports betting; $30 million from a tax on parking garages and lots; $68 million from an increase on the real estate transfer tax on commercial properties; $45 million from removing the sales tax exemption on traded-in property valued above $10,000; and $156 million from an increase on the cigarette tax by $1 per pack.
* Heh…
State Senator Terry Link, a Democrat from Vernon Hills, has pushed for years to expand casino gambling. He finally got his wish Sunday, on his wedding anniversary.
“For the sake of my marriage, for the sake of the state of Illinois, vote this out with your green lights,” Link said.
The bill passed the Senate 46-10-2. Senate Republican Leader Bill Brady voted “Present”…
State Sen. Bill Brady of Bloomington has financial ties to the company that operates half the video gambling terminals in Bloomington-Normal.
State records show Ellsworth-based Midwest Electronics Gaming has brought in $18 million from video gambling terminals in Bloomington-Normal over the last two years. That’s the firm ProPublica reported has financial ties to Brady, the Senate minority leader.
State and municipal records show Midwest Gaming licenses 174 terminals at 39 establishments in the Twin Cities. That’s about half.
From 2012…
When the gambling expansion bill was approved by the Illinois Senate last week, state Sen. Bill Brady, R-Bloomington, was a “present” vote. […]
“In this case, I have an equity interest in a hotel in Danville, Illinois. And, when Danville was thrown into the bill, my ethics officer advised me that I should declare a conflict by voting present,” Brady said.
* Related…
* Gaming expansion allows for Fairmount ‘racino’ and more positions at Casino Queen, Argosy
