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* The Chicagoland Chamber of Commerce wants to keep forging ahead with legalized video poker…
The head of the Chicagoland Chamber of Commerce says he wants to make sure video poker machines are installed around Illinois.
The state approved an expansion of video poker to help pay for $31 billion worth of construction projects. But a lawsuit has held up those plans.
Jerry Roper, with the Chamber of Commerce, said video poker machines are needed to pay for the construction plans.
“The infrastructure bill, which had attached to it, the video poker, so we’d like to see that going forward,” Roper said Thursday. “I think you’re seeing more and more cities and countries pushing the video poker so I think it’s worth the try.”
* But the Tribune editorialized against it today…
John Cullerton, president of the Illinois Senate, surprised fans and foes of video gambling this week. He proposed repeal of lawmakers’ wrong-headed decision in 2009 to legalize this predatory pastime — a proven way for cash-hungry governments to separate poor and working-class families from their scarce resources.
We appreciate that Cullerton’s proposal to kill legal video gambling before it begins is part of his push to raise the state cigarette tax by $1 a pack. But whatever his conditions, Cullerton now has proposed the death of video gambling. He owns this mission, and we’ll do what we can to further it. The Tribune news story about his proposal to kill video gambling identified Cullerton as a “powerful Chicago Democrat.” We trust he’ll use that power to get this important job done.
* Mayor-elect Rahm Emanuel is on record opposing video gaming in his city. And Gov. Pat Quinn is open to dumping it…
Quinn, speaking to reporters from seven Illinois print news outlets, was asked about Cullerton’s move. Quinn noted that he signed a law allowing video gambling as part of a deal with Republicans to fund a capital bill. Quinn said he was never “fond” of allowing video gambling.
“I told the Republican leaders I have no love for video gambling,” Quinn said. Quinn said a higher cigarette tax was a “better way” to go than legalized video gaming.
* The Peoria Journal Star wants to keep it…
While we do get why Cullerton might want to write off the video gambling element funding the capital plan - Chicago still won’t permit it, at least 60 municipalities have opted out already - doing so at this late date is ill-advised. If nothing else, the Land of Lincoln has been working on rules governing its legality since the measure passed. The oversight agency has 50 new people on the payroll being trained to police these joints, the Chicago Sun-Times reports. It would be just like this state to say, “Oops, never mind,” after expending so much in the way of time and resources in beginning to implement it, but perhaps the Legislature should go off character, for once. (We might add that these machines already operate in many a tavern with under-the-table payouts; this was a way for Illinois to get a piece of the action without encouraging new gambling.)
* And so do many Republicans…
“People have relied on our representations that we did a deal, the governor signed it and they invested money in this state,” said Senate Minority Leader Christine Radogno, R-Lemont. “Here we are again, yanking the rug out from under people.”
And…
State Sen. Kyle McCarter, R-Lebanon, said it would be wrong to reverse course on video gambling because people have already began to make investments in the business.
* The Question: Keep going with legalized video poker or dump it?
…Adding… Somebody on the opposing side was clearly Freeping our poll late in the day, so it’s been deleted. Happy now, morons?
posted by Rich Miller
Friday, Mar 18, 11 @ 8:31 am
Sorry, comments are closed at this time.
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I say go ahead with it, but I wouldn’t expect too much from it.
The illegal gambling from the machines is going on already. There’s no reason why those who are breaking the law should be entitled to profits. Let the state get a taste.
Comment by wordslinger Friday, Mar 18, 11 @ 8:47 am
keep going with it.
don’t fool anyone with rosy revenue projections, given how many municipalities have opted out, but every little bit helps, given the still-large budget deficit.
Comment by Robert Friday, Mar 18, 11 @ 8:51 am
I have no opinion on it, except that “the crack cocaine of gambling” is just about the dumbest political slogan I have ever heard, so I support it.
Comment by Dirt Digger Friday, Mar 18, 11 @ 8:54 am
Rich, thanks for this survey. I absolutely oppose video poker, which is another “Full Employment Act” for Chicago mobsters.
Folks who don’t get it need to realize how it works. Video poker is the narrow edge of the wedge. People from the gaming vendor show up and a neighborhood tavern and install one, or two, or three video poker machines. They promise a cut to the tavern owner, who tracks the payout. The bagmen come around, check the meters on the machine, and collect their cut. Then over time they start demanding a larger cut. In due course, regardless what the machines might actually bring in, the demand for $X is made, irrespective of actual revenue to the bar. To refuse is to invite trouble. Be it from crooked city inspectors on the take to violence.
Ask any Chicago cop or prosecutor. They all know the stories because they’ve all seen it happen.
Voters need to understand that video poker is a short-term non-solution that causes bigger and longer-term problems that dwarf the proclaimed financial “benefit.”
By the way, here are just some of the recent headlines and stories video poker helped produce:
Reputed low-level member of Chicago Outfit gets more than 3 years in prison
He had pleaded guilty to gambling, tax charges but argued he was a pawn of the mob
August 15, 2008|By Jeff Coen, Tribune reporter
A bit player in the Family Secrets mob conspiracy case was sentenced to more than 3 years in prison Thursday by a federal judge who noted it takes a lot of low-level associates of the Chicago Outfit to make the organization work.
Joseph Venezia, 65, had pleaded guilty to gambling and tax charges before the landmark trial last year.
Venezia had sought a sentence as light as probation Thursday, arguing he was merely a pawn to the Outfit when he did his job picking up cash from video poker machines.
Another Outfit trial, another courtroom circus
Colorful courthouse antics of co-defendants Sarno and Volpondesto contrast sharply with leaner, meaner tactics of modern mob
November 10, 2010|By Andy Grimm, Tribune Reporter
Three years after the landmark Family Secrets trial gripped Chicago with lurid details of gangland slayings, reputed Cicero street crew boss Michael “The Large Guy” Sarno went on trial Wednesday in another racketeering case showcasing the alleged violence of the Outfit.
Jury selection began Wednesday in U.S. District Court, with Sarno, 52, and his alleged crew members charged with bombing a Berwyn video poker business in competition with a mob-backed rival and fencing $1.4 million in gems stolen in a series of smash-and-grab robberies at jewelry stores.
Chicago Sun-Times
Hollywood Goodfella: Chicago Outfit: Video poker king target of federal investigation
Casey Szaflarski allegedly runs a multimillion-dollar video poker business for the Chicago mob.
Feds Raid Video Poker Bars in Bridgeport
By CAROL MARIN and DON MOSELEY
Updated 10:15 PM CDT, Mon, Dec 7, 2009 |
A Federal investigation of mob-backed video poker machines is now underway in Chicago’s Bridgeport neighborhood, NBC5 and the Chicago Sun-Times have learned. And tavern owners, in whose bars the poker machines were located, have been called to testify before a federal Grand Jury.
The raids, according to law enforcement sources, began over the summer.
“They hit several taverns, ten or twelve of them maybe,” confirmed attorney Joseph Lopez, who said the FBI took all the circuit boards out of the machines. That could allow authorities, according to one bar manager, to check for possible tax evasion charges.
One such raid, according to a knowledgeable source, took place at the Redwood Lounge at 3200 South Wallace. Reached at home, the bar owner, Nick Spazio, declined to comment when asked if his tavern was the object of an FBI raid. “Sweetheart, I can’t really talk to you on the advice of my laywer…we better leave it alone,” he told a reporter.
The bar is now closed.
Authorities believe the video poker machines, which produce illegal payouts, tie back to the operation of the late Joseph “Shorty” LaMantia, a top lieutenant in the 26th Street Crew, which operates in Bridgeport and Chinatown.
LaMantia in turn worked under Frank Calabrese, Sr. who was convicted in 2007 in the historic Family Secrets trial, involving 18 unsolved mob murders. Calabrese, Joseph Lombardo and three others were found guilty on racketeering, and conspiracy charges. A jury ruled that Calabrese, 72, took part in seven outfit hits and ran an illegal gambling operation. He was sentenced to life in prison.
At the end of the 2007 trial, Robert Grant, Special Agent in Charge of the Chicago FBI said his agent’s work was not done. “It’s not the end of the Outfit,” he said. “I would declare to you right now we are actively investigating the Chicago Outfit.”
Video poker machines have long been a staple of Chicago taverns and a rich source of revenue for the Chicago mob. (emphasis added)
Currently it is the state of Illinois that is desperate for revenue. And so in July, Governor Pat Quinn signed a bill to legalize video poker as a way to fund state construction projects. But those machines won’t be up and running until late 2010.
Source: http://www.nbcchicago.com/news/local/FBI-Raids-Mobs-Alleged-Video-Poker-Ring-78740427.html#ixzz1GxUUA0b3
There are plenty more of these stories anyone can Google, but you get the idea.
Comment by No on Video Poker Friday, Mar 18, 11 @ 8:59 am
– I absolutely oppose video poker, which is another “Full Employment Act” for Chicago mobsters.–
How would legalized, state-regulated video poker benefit The Outfit? That’s illogical and ignores history.
When Prohibition was in effect, mobsters made a fortune on illegal booze. When it was repealed, they lost a ton of money. The state Lottery killed another Outfit cash cow, the policy wheel numbers games on the South and West sides.
If done correctly, legalized video poker would drive the mob out of that business.
Comment by wordslinger Friday, Mar 18, 11 @ 9:09 am
wordslinger here you go please ready this http://www.myfoxchicago.com/dpp/news/investigative/jimmy-deleo-frank-calabrese-junior-senior-family-secrets-outfit-mob-trial-father-son-chicago-mobsters-20110309article.
Comment by Don Diego Friday, Mar 18, 11 @ 9:12 am
I don’t know how video poker can bring in the expected revenues in its current incarnation, what with significant numbers of municipalities opting out. Considering the issues with enforcement, the proposed cigarette tax hike is a less complicated and more reliable revenue stream.
Comment by The Doc Friday, Mar 18, 11 @ 9:14 am
I’m not sure I have all the evidence as posted by no on video poker, but to me it just seems we are trying to balance the budget on the backs of the poor and desperate.
Instead of gimmicks and shallow moves to try and raise money on the backs of the addicted and poor, our legislators need to start making very politically difficult choices in cutting benefits to ALL the citizens of Illinois, including the elderly, including the minorities, unions, and most certainly those benefits they see fit to give themselves.
Who among them has the brass to do what is right? I think very few.
We have taxed just about everything now. Perhaps they can size each family and tax them on the air they breathe.
Comment by Justice Friday, Mar 18, 11 @ 9:15 am
Why is it OK for Chicago to take advantage of the construction projects that this would pay for while opting out of machines at the same time?
Comment by Homer J. Simpson Friday, Mar 18, 11 @ 9:19 am
To Mr. “No on Video Poker”-
I fail to see why you would write such a long, rambling screed on this subject for free, and I pity the person who is paying you to comment on Capfax.
Comment by Dirt Digger Friday, Mar 18, 11 @ 9:22 am
Gambling is not the way to raise revenue. A much better way is for the State to move to a graduated income tax structure which our Democrat leaders have shunned to this point. The Dem leaders pander to the common folk, but continue to screw us by not going to the proposed tax structure. Our dem leaders are just like our teachers who keep telling us what a great deal they are providing. What a crock of Bull.
Comment by Tom Smith Friday, Mar 18, 11 @ 9:26 am
DD, thanks for the link.
I still don’t follow the logic, though. If the machines are licensed and controlled effectively, and the state has an interest in removing illegal competition, it should put The Outfit out of the video poker business, just as legalizing booze and the state Lottery put them out of those businesses.
The Outfit’s big in the video poker business right now. How the state muscling in on their business is a benefit to them escapes me.
Comment by wordslinger Friday, Mar 18, 11 @ 9:27 am
dump it. many locals dont want it. difficult to implement. rife w opportunities for corruption. overinflated revenue estimates.
enough with the gimmicks. expand the sales tax base.
Comment by Langhorne Friday, Mar 18, 11 @ 9:28 am
Go ahead with it. The state…stop being naive. It’s out there. The state already has gaming. The IGB is taking its sweet time to get it right, so the red herring mob comments don’t wash. It will be regulates, add some fun and every once in awhile, you could win. Nothing more than a lottery machine.
Comment by Tom Friday, Mar 18, 11 @ 9:36 am
Collectively the 100+ applicants along with many more Illinois businesses including veteran’s and fraternal organizations, taverns and restaurants have already invested $150 - $200 million in preparation for implementation of the Video Gaming Act and have made preparations to invest approximately $1 Billion more to complete implementation. Illinois is currently struggling to maintain a business friendly environment. Ignoring this substantial investment made in good faith by the business community and based upon the actions of the legislature would surely send the yet another negative signal about the business environment and investing in Illinois.
Comment by TTWSYF Friday, Mar 18, 11 @ 9:47 am
Regarding the handful of communities that have to date, opted out of Video Gaming, the press likes to state that these communities have “Run Away” or said “No Thanks”.
Let’s look at the numbers. There are 102 counties in Illinois. Of these, only 4, or 3.9% have voted to opt out of Video Gaming for the unincorporated areas of those counties. There are a total of 1299 municipal governments in Illinois according to the 2007 census. Of these, 75 or 5.7% have voted to opt out of Video Gaming. Granted, some of these communities would not have venues where gaming would be allowed, but hardly the mass exodus described in the articles.
Many of those that opted out were actually misled to believe that if they did not opt-out by a certain date that they would lose that option. Another trick used in many communities was to convince them that they needed to opt out now or they could end up with Video Gaming in a handful of their local businesses before they would be given a chance to review the yet unfinished Illinois Gaming Board rules. This of course was a false pretense since no games will be permitted by the IGB until placement and operating rules are completed and all venues are found to be in compliance before licenses would be issued. Just look at the meeting minutes and even below the headline on occasion and you will find where many of the communities’ state that they have only decided to opt-out until rules are finalized or they could obtain more information.
Comment by TTWSYF Friday, Mar 18, 11 @ 9:49 am
Organized Crime:
Many like to state that the Video Gaming Act benefits criminals when in fact; nothing could be farther from the truth.
The regulated gaming industry is the second most regulated industry in the world. Nuclear power is the highest. By law, all participants in Video Gaming are held to same standards as those involved in riverboat casinos. In addition to a clean criminal background, applicants are scrutinized based upon their reputation, habits, social or business associations, prior activities, business practices and financial arrangements.
What they don’t tell you:
• That the Illinois Gaming Board (IGB) is globally regarded as one of the most thorough and stringent gaming regulating authorities.
• The players in the industry, Manufacturers, Distributors and Terminal Operators are supportive of the rigorous background checks being done by the IGB.
• Organized crime does not thrive in a highly regulated industry.
• Applicants are required to report to the IGB every individual or entity that has even a 1% share in their business.
• Researchers state that organized crime is more of a product of illegal or poorly regulated gambling than well-regulated gambling. source - California Research Bureau
Comment by TTWSYF Friday, Mar 18, 11 @ 9:51 am
WS, The legalization of an activity does not preclude the mob’s participation in it (e.g., Legalized gambling in Nevada 1940s - 1990s).
The legalization facilitates the proliferation of the machines. The payouts and payoffs are where the money is made. Everyone gets a cut, including the mob.
Comment by No on Video Poker Friday, Mar 18, 11 @ 9:53 am
This state can’t afford to turn down any revenue what so possibly ever.
If what TTWSYF says that 100+ applicants along with many more Illinois businesses including veteran’s and fraternal organizations, taverns and restaurants have already invested $150 - $200 million in preparation for implementation of the Video Gaming Act and have made preparations to invest approximately $1 Billion more to complete implementation.
There is enough intrest and money to back it.
Comment by 3rd Generation Chicago Friday, Mar 18, 11 @ 9:54 am
1940? I would imagine.
Comment by TTWSYF Friday, Mar 18, 11 @ 9:55 am
Quoted above:
“Quinn noted that he signed a law allowing video gambling as part of a deal with Republicans to fund a capital bill.”
Governor Quinn again demonstrates in word and deed why he cannot be trusted to deal in good faith, and supports why Republicans have no obligation to help Democrats govern this state and provide the Democrats any cover for their actions.
Video gambling should remain legal. Many people say that it hurts the lowest income people disproportionately. True. But so does increasing the cigarette tax. If you support one, you should support the other since they both fall under the category I call “A Tax on Stupid.” You can add a cannabis tax to this too.
Ultimately, people are responsible for themselves and their behavior. Our good-intention efforts in just about any endeavor are those elements in government that are always the most costly and difficult to control, and are at the root cause of the financial difficulties of all level of government.
One poster makes another excellent point. If video gambling remains legalized, those government bodies that opt out of the program (which I firmly believe is their right) should not benefit from any revenues gathered by the program. This should also be true for “dry” municipalities and benefits of the liquor tax.
A final thought. Prohibition taught us that it is futile for government to try to regulate certain human behaviors. The best government can do is tax and regulate, not eliminate. Video gaming takes place in bars and fraternal clubs all across the state, and these venues can hardly be lumped into damaging the poor since the people who frequent these venues are overwhelmingly middle class. Organized crime is involved. There is little to no enforcement of existing laws.
Legalize, tax and get over it. Those people who vociferously object should program their charitable donations to such private programs as Gamblers Anonymous.
Comment by Cincinnatus Friday, Mar 18, 11 @ 9:56 am
There is no dumping this, there is only making it a shadow industry again. We can legalize it, collect the revenues or we can continue having it run by mobs and lurking in the shadows.
Comment by Ahoy Friday, Mar 18, 11 @ 10:00 am
To No, I can tell you that the reality is that the Mob would actually like to see the Video Gaming Act repealed. The situation to date is that since non-mob companies got out of the poker game business as required by the IGB on Dec. 16, 2009, this left a huge market that they literally drove their trucks through and took over a much larger market throughout the state. The sooner tha IGB can get control the better.
Comment by Anon Friday, Mar 18, 11 @ 10:03 am
These things prey on the ignorant - they are rigged against the player. And they are mob-run, and will continue to be (behind the scenes).
Comment by formerpolitico Friday, Mar 18, 11 @ 10:08 am
12-15,000 small businesses will directly benefit from the Video Gaming Act. Many of these are currently struggling to keep their doors open and this law will be the difference between continued operations and additional employment opportunities or bankruptcy or closure.
Many of these businesses have been borrowing money, mortgaging their homes, awaiting implementation of the law. Already, some have not been able to outlast the extended delays.
The industry will bring and retain jobs in over 1000 communities that do not have the economic benefits received by the riverboat communities.
Comment by TTWSYF Friday, Mar 18, 11 @ 10:10 am
–WS, The legalization of an activity does not preclude the mob’s participation in it (e.g., Legalized gambling in Nevada 1940s - 1990s).–
The mob’s participation in legalized gambling in Nevada was done in full partnership with the political powers-that-be in that state for a very long time. When the political tide started to turn against them after the publicity of federal prosecution, they cashed out, willingly or unwillingly.
Do you think The Outfit profits from video poker or slot machines in Illinois casinos? With proper regulation and law enforcement, I think the legalized booze and lottery scenarios are valid.
Comment by wordslinger Friday, Mar 18, 11 @ 10:10 am
It’s a rare day when a professional lobbyist (TTWSYF), wordslinger and I agree.
- formerpolitico - Friday, Mar 18, 11 @ 10:08 am:
“These things prey on the ignorant - they are rigged against the player. And they are mob-run, and will continue to be (behind the scenes).”
And your point is? I can probably make and even better argument that politicians prey on the ignorant and rig things against the citizen, and that some are mob-run and will continue behind the scenes.
Comment by Cincinnatus Friday, Mar 18, 11 @ 10:16 am
Admit to being a liberal on many of these “social crimes”- legalize it and tax it- including gambling, marijuana, and prostitution. The “crimes’ are already happening all of the time, and the state needs the revenue- the do-gooders don’t understand that a certain number of people are going to screw themselves up one way or the other-that’s their choice, let their taxes pay for the results…
Comment by Dowmstate Commissioner Friday, Mar 18, 11 @ 10:17 am
I am for the cigarette tax. And I am a yes on video poker. My arguments would be in line with “wordslinger”. Making these machines illegal will increase corruption across the state.
Comment by question? Friday, Mar 18, 11 @ 10:22 am
–Collectively the 100+ applicants along with many more Illinois businesses including veteran’s and fraternal organizations, taverns and restaurants have already invested $150 - $200 million in preparation for implementation of the Video Gaming Act–
What have they invested in to this point? Didn’t a lot of these places already have machines that were paying out illegally?
Comment by wordslinger Friday, Mar 18, 11 @ 10:23 am
If the state wants to regulate video poker they should own in and operate it through the lottery as other states have done. That would eliminate fraud and maximize revenue to the state while benefitting bar owners and fraternal groups. ‘Legalizing’ existing gray area operations was a rushed exercise in bad public policy and will lead to all sorts of problems.
Comment by walter sobchak Friday, Mar 18, 11 @ 10:25 am
I voted no because the republicans want it.
Comment by Bill Friday, Mar 18, 11 @ 10:27 am
Since the video gaming machines have been operateing for over 30 years with out any real revenue coming to the state , I feel that moving forward with a legalised video gaming bill is the right way to go.
I know that many Illinois companies have spent well over 100 million dollars in trying to get ready for video gaming to come to Illinois and I’m sure this would represent thousands of jobs and help the state debt .I also know that the several states that have legal video gaming do not experience any state debt nor is any organised crime involed . We can’t keep burying ourhead in the sand!
Comment by Mike R Friday, Mar 18, 11 @ 10:34 am
It is as easy as ABC , 123 … Our state is BROKE!! WE NEED VIDEO GAMING! First to all those that feel this will hurt the families…We are cutting money like crazy in our schools. The cuts we are making in our schools are FAR FAR worse to our children/family then 5 video poker machines in a local bar that already probably has 10 of them in it that the state isnt getting any tax revenue from besides ordinary income tax. We need every piece of revenue we can get. Not to mention there are several manufacturers, distributers, and operators that have invested millions of dollars already to prepare for video gambling. It is not right for the state to pass something then rip the carpet out from under people. For all you that think the mob will run this business I urge you to go review the applications that are to be submitted to receive a license. The reason video gaming is not making money already is because the IGB is ensuring that those type of people are not in this business. Everything will be regulated!!!Also for those of you that think this will not make any money I urge you to go look at the west virginia monthly revenue website. http://www.wvlottery.com/lvl/lvlmonthlyrevenue.aspx
Here is some highlevel revenue info.
In west virginia which allows video gaming in liquour license establishments. They generated $35 million in revenue last month the states tax share would of been 10 million. West Virginia only has 1.6 million people and 1500 locations. Illinois has ~12 million people and the potential to have ~10,000 + locations. If Illinois generates the same revenue per month that west virginia made just last month Illinois would of collected ~$66.8 million for one month or ~800M for 12 months. You would have to increase cig tax by 3 dollars a pack to have an equal replacement. I’m a number person and west virginia, oregon, south dakota, lousiana all prove that video gaming generates money if ran right.. Why are we even questioning this…. KEEP VIDEO GAMING!!! It is a win/win situation for all.. small business owners and for the State!
Comment by ABC123 Friday, Mar 18, 11 @ 10:39 am
Langhorn is right. Enough with the gimmicks. In addition to expanding the sales tax base to include services as an alternative to video poker, we should tax his pension. But I don’t know why video gambling is “rife w opportunities for corruption”, any more than the lottery is. Maybe everybody will be making illegal side bets. Is there some evidence of corruption in the other states that have it? The mob gets their cut now from the illegal machines. Can someone someone come up with a scenario where the mob gets a cut from a machine that is connected to a central computer system at the Department of Revenue like the current lottery terminals are?
Comment by maddem Friday, Mar 18, 11 @ 10:47 am
If the Video Gaming Act goes forward, it will be highly regulated and the bad elements will be out of it, because the Illinois Gaming Board already does that with the Riverboats. If it is repealed, the illegal poker machines will not go away and they will grow from their current numbers. The bad elements will continue to make money and the state will not make a dime. The choice is simple, either regulate Gaming and make money for the state or repeal it and pretend that video poker is not in thousands of locations already and see another revenue source for the debt ridden state go away along with thousands of jobs in the gaming industry. An additional tax will not create jobs.
Comment by Doug Friday, Mar 18, 11 @ 10:48 am
- Cincinnatus- Sorry, not a lobbyist. I am an applicant for a gaming license, so yes I do have a vested interest. This does not obscure the facts.
- wordslinger-
Manufacturers have invested millions in R&D to develop and submit equipment for testing to the IGB. The lowest number reported by a single manufacturer is $3 million and this would be from a company that already had a similar product approved in other legal jurisdictions. One of the newer startup companies claims to have invested $22 million in developing a product for the Illinois market. Several had to retool to comply with IGB requirements.
Distributors that have already undergone IGB inspections on their facilities have had to move to larger facilities and secure access renovations as required by the IGB be implemented before their IGB inspections took place. These renovations had to be done before their application would be considered.
Terminal Operators also had to purchase and/or make renovations to their facilities to comply with IGB security requirements. Many companies have already purchased routes and businesses totaling countless millions from companies that were not going forward in obtaining an IGB license for various reasons including financial considerations, owner’s age, and yes some would have been ineligible to get a license. The exact amount of money spent here is difficult to determine since most have signed non-disclosure agreements. In many cases the potential operators have had to hire or train personnel that the IGB would deem qualified.
All of the above have had sales, marketing and training staff and expenses ongoing since June of 2009.
There are many items that have to be in place before the IGB will approve an applicant. They will not just take an applicant’s word that they can reach the requirements after they get their license approved.
Several potential locations knew that their financial situation, past tax payment history or even a misdemeanor gambling charge would exclude them from eligibility. Several of these have already sold their businesses as well. Many potential locations that had revenue coming in from the previously existing gray games had these removed in December 2009 as required by the IGB. This has forced many to shorten their operating hours and lay off staff while waiting for implementation. Many have dipped into their savings and mortgaged their homes while waiting on implementation by the IGB. Lost revenue is not figured into the calculations of money invested.
Also not figured in is the money already spent by the IGB since 2009.
Comment by TTWSYF Friday, Mar 18, 11 @ 10:55 am
I oppose this idea as my neighborhood already has enough problems. It won’t be the outfit or mafia or whatever, but the (angry) drunks who lose all their money and then come out of the bars even more angry. Every neighborhood in Chicago will be in need of many more police officers. And then think about adding the concealed carry. It’s a disaster waiting to happen.
Comment by belmont cragin kid Friday, Mar 18, 11 @ 11:11 am
They should keep it
I am opposed to legalized video poker because it tends to increase the amount of gambling, and lures in mostly people lacking in disposable income by playing on the dream of bettering themselves.
However, I also agree that the best way to limit the benefit to crimianls from gambling is to legalise and take it over by the State. In the end, the pro’s of State control outwigh the cons of expanding gambling publicly. I also agree that there has been a lot of investment by the private secotr and the State, and we need to hold to our promises.
What is fascnating is the GOP folks who tak about needing to keep our promises/word on ventures, but want to pull pension benefits for current State employees. Apparently the promise of having a pnesion if you work for the State is a rug they are willing to yank out; so I find it a bit isnegenious that they worry about the State yanking out rgs as their entire budget proposal is one giant rug yank after another to different groups and people.
Comment by Ghost Friday, Mar 18, 11 @ 11:12 am
Ghost,
Please provide a listing of GOP people who want to renege on past pension obligations. I’d like to know who they are so I can actively work against them. No right-thinking conservative things a contract should be negated without court intervention. No one.
What you WILL see is a lot of GOP people who acknowledge that the current system is unsustainable, and are willing to take on those who say the status quo is our only choice. You one of those people?
Comment by Cincinnatus Friday, Mar 18, 11 @ 11:18 am
Video games have been here for years, why not get the tax benefit. It’s legal deal with it. The Democrats rammed it though now they want to kill it.
How can anyone do business in this State?
Comment by mokenavince Friday, Mar 18, 11 @ 11:18 am
As I have said before on this site. Amend the bill to cover the machines that are already out there. Then add areas or not depending on local interest or lack thereof.
The games are out there, money is being made on them. “No Video Poker”’s lengthy comment backs up the fact that this is a thriving business. Why not legalize it and tax it? Look at the money that would be saved in not having to prosecute the mobsters who are currently running the illegal machines.
Comment by Irish Friday, Mar 18, 11 @ 11:22 am
I do not gamble. ok, occasionally the slots if with a blackjack player and I’m bored just watching. But those who want to gamble should have access, especially when revenues could result, even if the number of machines will be very few.
Comment by amalia Friday, Mar 18, 11 @ 11:30 am
Where would the Louisana mafia drop all of their campaign cash if the video poker issue was off the table????
Comment by MJMspksman Friday, Mar 18, 11 @ 11:37 am
I say forge ahead with this new opportunity for our state. Im convinced it will be well regulated. I just hope it benefits illinois businesses and not out of state gaming interests.
Comment by lincolnlogs Friday, Mar 18, 11 @ 11:56 am
The state should keep video poker!! Use the taxation of ciggeretts for something else and stick with the plan of video poker. Illinois needs every dime it can get and video poker is a great way. I am all for the state creating jobs and taxing ciggrettes does not create jobs. While video poker has already created tons of jobs and has not even started yet. Also people that say the mob will be legalized is very un educated on the job of the Illinois gaming board. They are known as one of the strictest gaming boards in the U.S. There are video poker games out there this vary minute being run illegally. Why is it so wrong for the state to tax it? The people that don’t want this to be legalized are only supporting the mob and allowing them to operate illegally because the IGB will not allow them to run the legal regulated version!
Comment by Laa123 Friday, Mar 18, 11 @ 12:18 pm
Jerry Roper’s position is likely based upon certain biz that intends to profit from video gambling, but in the “what’s in the best interest of the state and taxpayers?” mode, there are too many downsides and it creates no “new” money at all. It simply shifts money where it would or should be spent on normal goods and services by consumers. It’s stupid economic development and even worse public policy to raise funds.
Comment by Rob Friday, Mar 18, 11 @ 12:23 pm
Illegal machines are already easy to find (maybe it’s just the places I frequent), so I say keep it yes and tax it. Having the machines legally available with a better deal to the proprietor than they can get from other sources is a good thing.
Comment by cermak_rd Friday, Mar 18, 11 @ 12:25 pm
Cincinnatus, the pension system is based on a formula centered around providing 30 years of service. If you promise that benefit, and then part way in change your mind, you are going back on the promise.
What is unsustainable about the current system? the GOP borrowed money from the fund, if they put back all the money the GOP govenors ook out over the decades the pension system would be flush.
What exactly is unsustainable? you mean the State not paying its pensionbill? I agree that needs to be stopped, and the pension bill paid in whole. But the GOP solution is to kill off the debtor because they ran up a big bill?
We could use the GOP’s mch vanted priate secotr model. Lets see bnakrupt tribune and ankrupt financial institutions paid out millions in bonuses to top level staf, provided them stock options AND 401K…so the State will do that. Stock options, bonses which double or triple your pay, some company jets or all.
after all, everyone knows thebest time to start a 401k from scratch is late in life, after decades of being in a different system. Yep lets start working on a retirement fund at age 45-50.
Comment by Ghost Friday, Mar 18, 11 @ 12:28 pm
This is not a moral issue.
We have all kinds of gambling going on in IL already. This includes $30 scratch off tickets. Why is anyone out there worried about an adult, in a bar, making a $2 bet so they might win a Maximum of $500?
Take what is out there; regulate it, tax it, & make it better for everyone…well except the Mob.
Comment by Fred the farmer Friday, Mar 18, 11 @ 12:42 pm
Ghost,
I think you will find us in more agreement than you may believe.
There is no doubt in my mind that any past obligation must be met. The questions are around going forward. You say that the pension is centered around a calculation of 30 years. This is problem one. You are guaranteeing a benefit (and rate of return) that does not include provisions about economic performance within that period. Such a plan, at the onset is doomed to fail, or at best needs everything to break in its favor.
I hate to see you limit your attacks on borrowing from the fund to the GOP. The pension fund has been an equal opportunity slushy. The Democrats have been in complete control of Illinois for years, and while the first tap on the fund may have been made on the GOP watch, enlightened Democrats could have fixed it.
8.5% returns are unrealistic. Period. Even if they are realistic actuarially, there are no guarantees in life, and that fact in and of itself shows a major flaw in the system.
You quickly damn the private sector. Certainly, you must be including the quasi-public GM who paid bonuses while directly taking taxpayer money or Chrysler who was forced to sell itself for a buck. For every abuse by the private sector, there is an abuse by the public sector.
I drop this whole pension problem on the laps of the union management, who I believe have ill-served their members. With a wink and a nod, unions supported the politicians who made this mess. From these union “leaders” we always hear about “workers rights” while boxing out average workers from working for the state government without joining the union. Rights indeed.
Until union members take responsibility for their managers and become realistic partners in the body politic along with the taxpayers that support them, we will have this problem.
Comment by Cincinnatus Friday, Mar 18, 11 @ 12:50 pm
Ghost,
And P.S.
I think we are in the wrong thread.
;-{)>
Comment by Cincinnatus Friday, Mar 18, 11 @ 12:53 pm
If Video Poker isn’t allowed, there will be 50 more agents trained to investigate tax crimes in Illinois. In addition to poker machine investigation, there are many areas of tax cheating that can be investigated.
In particular, cigarette smuggling, fraudulent cigarette stamps, phony Indian Reservation cigarette production and sales, border repurchases of cigarettes to avoid Illinois sales and use taxes, hijacking trucks and on and on. The state will recoup its investment in the new investigators, and will have a new revenue source.
Comment by Marlboro Man Friday, Mar 18, 11 @ 1:02 pm
I say go ahead - the more fools parting with their money means less of a deficit if the state runs it. Don’t like gambling - don’t partake. I only bet on sure things, like Bill Brady becoming gov - oops.
Comment by dupage dan Friday, Mar 18, 11 @ 1:08 pm
Video gambling is one of the most regressive taxes you will find on the books. Since we also know that gambling does not work as an economic development tool I have to ask what are the supporters thinking?
This will be paid by people on the lower end of the economic scale, but the benefits will accrue to all. Thanks Democrats.
Comment by Plutocrat03 Friday, Mar 18, 11 @ 1:08 pm
I erred in that last post - forgot that the poker receipts are for the capital construction thingy.
Comment by dupage dan Friday, Mar 18, 11 @ 1:09 pm
Fact:
Legalized gaming is the second most regulated business. The only other most regulated business is the atomic energy commission
Fact:
The Illinois Gaming Board is highly respected throughout the nation for its scrutiny of keeping out undesirable individuals in the video gaming industry.
Fact:
Due to the highly regulated business of gaming, there will be thorough background screenings on every individual involved as well as every business associated with the video gaming industry.
Fact:
Video gaming, when it is up and running, will bring in $700 million to $1 billion in annual revenue for the State.
Fact:
Close to 1 million new employees will be needed, such as factory workers to build the machines along with service and technical people to keep the machines running. $31 billion Capital Works program will be well-funded for the expansion of school rooms, libraries, and universities throughout the State, not to mention road and bridge construction, just to name a few.
Comment by Larry Friday, Mar 18, 11 @ 1:16 pm
Not possible to control the industry; riverboats are bad enough.
Comment by D.P. Gumby Friday, Mar 18, 11 @ 1:20 pm
–Close to 1 million new employees will be needed, such as factory workers to build the machines along with service and technical people to keep the machines running.–
You sure it’s not 1 kajillion new employees? It’s already passed once, I don’t think the services of Rosy Scenario are needed.
Comment by wordslinger Friday, Mar 18, 11 @ 1:32 pm
There is already alot of money changing hands in Macoupin everyday with video poker. I think the State should get their share. But connecting each and every machine via the internet to Springfield (like Lottery terminals) is the only effective way to avoid corruption. The bar owners and customers using the illegal system today will certainly attempt to safeguard their take.
Comment by tomhail Friday, Mar 18, 11 @ 1:43 pm
Larry, you list several points as “fact”. Can you point me to a credible source of information to support your facts? Thanks.
Comment by Anonymous Friday, Mar 18, 11 @ 1:44 pm
Pluto, I doubt if this is an expansion of gambling. Plenty of large-population areas, including the city, have bowed out.
I suspect it will be more like a state takeover of an already existing, but illegal, gambling industry, a la the Lottery and the numbers games.
The trick, I imagine, will be the hammer that the state wields over those who might try to continue operating illegally. Right now, they do it with relative impunity.
Comment by wordslinger Friday, Mar 18, 11 @ 1:53 pm
It’s great to see the GOP and so many people here expressing confidence in the Quinn administration’s ability to run this outfit … err, bad choice of words … new opportunity. The administration has run everything else so well, I mean there’s the MGT Push program, the privatizing of the lottery, …
Comment by piling on Friday, Mar 18, 11 @ 2:18 pm
–Republicans have no obligation to help Democrats govern this state and provide the Democrats any cover for their actions.–
I simply can’t fathom that position. Thankfully, it appears many Republicans of good will, a la JBT and many in the Senate GOP, can’t either.
It should be noted that no one in the GA is elected to represent their party, but their districts. And there is no Constitutional requirement to march in lockstep with any party doctrine.
Comment by wordslinger Friday, Mar 18, 11 @ 2:26 pm
State-sponsored gambling involves the wealthy in the state avoiding taxes for services they want the state to provide by bleeding the desperate poor of the little they have. We who have means need to step up to the plate and take responsibility for paying for what we want rather than placing the cost on the backs of the most vulnerable and least politically powerful - the poor. Shame on us!!!
Comment by xnlover Friday, Mar 18, 11 @ 2:40 pm
For years, at least in my nape of the neck, the bar owners were torn about this. For the most part, unless they were completely reckless and paid out to the Stranger Dressed Like a Biker Dressed Like An Undercover Cowboy and got caught they were making their mortgage payment, their dramshop, part of their inventory and maybe more with the split. Fredo and/or the local collector were never problems unless you messed with the machines (clicked the clocks) or withheld money.
A pretty sweet deal except for the potential fine, jail time and/or loss of liquor license.
So, go ahead and legalize it so we’ll stop making criminals out of a lot of really decent mom-and-pop bar owners. Tougher DUI laws, smoking bans have all taken their toll on these small shops (and I support both efforts, too). So maybe this (if their locals okay it) will make it up to them in some way. They may make less money; they may find out they end up making more. The state gets revenue. Those who are problem gamblers are going to be problem gamblers whether this takes effect or not and those who are going to become problem gamblers will become problem gamblers whether this bill takes effect or not.
Those who think the mob won’t get involved are foolish or just spinning and those who think the mob will be reborn because of this are wrong, too. It’s probably somewhere in the middle.
My real complaint is that proposing to repeal VG now seems like such a cynical ploy prompted by rumored (loudly) revelations by an ex mobster who just happened to suggest an ex legislator was the mob’s conduit in the GA. Someone seems to obviously want to be able to say they weren’t influenced by organized crime. Okay, we get it. As a matter of fact, it never crossed our mind.
Now, though, stop all the posturing and help mom-and-pop keep and create good-paying legal jobs right here in Illinois (possibly millions, as one poster said!). A revenue source, like a mind, is a terrible thing to waste . . .
“THIS AD PAID FOR BY CITIZENS FOR MOM-AND-POP BARS!”
Comment by Canned Yard Friday, Mar 18, 11 @ 2:41 pm
wordslinger,
As the loyal opposition, Republicans can suggest and cajole. Since they are not in power, they have no obligation to help run the state. It’s pure and simple. Republicans have not been invited to help. Indeed, Quinn, as head of The Triumvirate, seems intent on kicking Republican’s in the teeth. How many times have we seen on this blog Democrats telling Republicans that they’ve won, and to get over it. Heck, the leader of the free world has done the same thing in Washington.
I acknowledge that Democrats have won. I’m over it. When Democrats understand the fact that it’s their ballgame now, and when they come to Republicans with serious requests to join in, I’ll be here waiting. Until then, Democrats own it. Get over it.
Comment by Cincinnatus Friday, Mar 18, 11 @ 2:42 pm
Why invite more problems for vulnerable people? This would give IL more problems for the future. The State should not depend on funds through promotion of gambling and promote a false hope for those who are searching for instant money. Lets promote character on all sides by collecting/raising funds in more respectable ways.
Comment by HonestABE Friday, Mar 18, 11 @ 2:54 pm
Greed destroys communities, families, and citizens. Gambling is a pernicious form of greed. As a good society we must keep this greed at bay as much as possible. Get rid of video poker gambling machines.
Comment by Colleen Lans Friday, Mar 18, 11 @ 2:57 pm
What happened to my positive comment, seems to have disapeared from the comments stream ?
Comment by WJP Friday, Mar 18, 11 @ 3:13 pm
Ilinois, take the stand to legalize “Video Gaming” use the reputation of the Illinois gaming board to monitor, the new version, tax the tax revenue it will generate. If not then make sure you invest into inforcement to stamp out the now illegal untaxed version that goes on everyday !!!!
Comment by WJP Friday, Mar 18, 11 @ 3:26 pm
You can either go forward with the new–> legal, monitored, taxable version of Video Gaming for Illinois or dump it –>and let us continue to cheat the system with no regulation of taxation as we have for years and years. You be the fool as no one does anything about the illegal version that is currently going on everyday. Your never going to stop it, so why not take the tax revenue from it!!!!!
Comment by The Common Man Friday, Mar 18, 11 @ 3:47 pm
“Mayor-elect Rahm Emanuel is on record opposing video gaming in his city.”
I wonder what his opinion of the Board of Trade and the Merc is?
Comment by MikeMacD Friday, Mar 18, 11 @ 3:47 pm
Illinois has a history of passing bills and then observing the disaster they cause, rather than thinking things through first. For example, allowing “for-amusement-only” gambling machines inevitably led to illegal payouts on those machines. Lax enforcement of laws prohibiting payouts is an admission of the lack of foresight in allowing those machines in the first place. They should be simply banned altogether.
The capital bill (with legalized video gambling stuffed into it) was found to be unconstitutional because of the single-subject rule. Had no one in the legislature heard of that rule before?
Do you suppose that there could be a problem with legalizing video gambling itself? Well, get this: Almost every community and county in the state have ordinances prohibiting gambling and gambling devices. Go to your community’s site and search their code for “gambling devices” to see for yourself.
A spokeswoman for the Attorney-General’s office has been quoted in the press saying that she believed that those old ordinances prohibiting gambling and gambling devices still stand, even after the legalization of video gambling.
Chicago is operating under the assumption that their ordinances prohibiting gambling and gambling devices still stand. Chicago has not “opted-out”. Do you think that both Chicago and the Attorney-General’s office are incorrect in their positions? Is it possible that the governor and the legislature do not want to admit that they did not do proper due diligence again? Is it possible that they are simply trying to back out of another disaster before it’s too late?
Is it possible that every Illinois community and county would have to overturn their old ordinances prohibiting gambling and gambling devices in order to allow video gambling?
When legal counsel for the Illinois Gaming Board was asked whether they would grant licenses to establishments in areas with local ordinances prohibiting gambling and gambling devices, their noncommittal answer was simply, “There will be lawsuits.” I believe that there will be lawsuits, no matter which way this plays out. BTW, that legal counsel has left the IGB.
Comment by antigambler Friday, Mar 18, 11 @ 3:53 pm
Go with it, I don’t see any difference between this and other forms of legalized gambling, including the lottery.
Comment by Wensicia Friday, Mar 18, 11 @ 3:55 pm
Oh Come on people, take the Tax revenue that this industry could generate. Or spend the time, effort, and money to have law enforcement take it all away, as we all are smart enough to know that currently (yes today) illegal or “grey” gaming income is not reported, regulated, or taxed. Let the state gaming board update this industry and take the current corrupt individuals out of the business. This is not a Republican / Democrat issue. It is an issue of doing it right and legal.
Comment by Steve Friday, Mar 18, 11 @ 4:00 pm
Legalize Video Gaming NOW and don’t give any of the dollar income from the taxation of the industry to any of the opt out area’s. Let’s see how those area’s survive without it, as they have chosen not contributing to the pot of gold.
Comment by ROBB Friday, Mar 18, 11 @ 4:05 pm
The supreme court should let the VLT industry move forward! Illinois needs the money. I for one am sick of the higher taxes and fees in the city and Illinois as a whole. I would rather have my voluntary tax taken at a gaming machine that I would play at a bar I go to anyway.
Not all gamblers are problem gamblers. Some of us just like to enjoy a game now and again. Also with the new industry comes new companies that are intent on doing right by the state. That means clean companies with respected backgrounds that operate by the book and do not take advantage of the players.
Comment by WESTSIDER Friday, Mar 18, 11 @ 4:12 pm
To Tom and other VG supporters:
Should bar owners who currently have video poker and who engage in illegal gambling meet the good character standards required to get gaming licenses?
Comment by reformer Friday, Mar 18, 11 @ 4:14 pm
Wensicia
Because some gambling is legal, does it logically follow that all types should be legal, and that no controls should be retained?
Comment by reformer Friday, Mar 18, 11 @ 4:16 pm
@reformer
You want government to control and profit from any form of gambling, you have to legalize it. What control does the government have over it, now?
Comment by Wensicia Friday, Mar 18, 11 @ 4:29 pm
I say YES for Operator run Video Gaming. The streets in Illinois are presently over-run with the Grey Gamining Machines. Move forward with a Legalized Monitored Gaming Terminal. Let’s get corruption and conspiracy removed from the streets.
Comment by Augie Monday, Mar 21, 11 @ 9:54 am
Legalize video gaming or get rid of the Gray Machines. It is not fair as a retailer not having machines and other retailers having them. Same for smoking. If legislature passes a bill, PUT ENFORCEMENT PROVISIONS IN IT! Make an agency responsible for enforcement that does not end operating hours at 5 PM! The state will spend millions trying to catch retailers selling to underage drinkers, who are going to drink anyway. In so doing, making honest retailers criminals.
Comment by sassquatch Monday, Mar 21, 11 @ 11:13 am
I advocate the legalization and taxation of video gaming in Illinois- The current use of gray gaming machines results in untaxed income to both the operators and site owners- You would not believe how many dollars are illegaly divided each day ! If OTB and Casinos are taxed , the video gaming ” industry” in Illinois should be included post haste!
Comment by Thatvoodoothatyoudo Monday, Mar 21, 11 @ 11:14 am
People are playing video games with under the table payoffs to winners all over this state, for the state not to regulate and profit from this activity is crazy. If any law maker believes the gambling will stop if the state dose not move forward on legalized gaming lives in another world. Don’t let this huge revenue steam get away from US.
Comment by INSPI Monday, Mar 21, 11 @ 11:16 am
If the machines are currently paying out, there’s nothing “grey” about it. It’s illegal gambling in black and white.
Comment by wordslinger Monday, Mar 21, 11 @ 11:22 am
I think it will be good for IL. I vote yes
Comment by club car Monday, Mar 21, 11 @ 12:12 pm
it is a good thing for Illinois I vote yes
Comment by moon Monday, Mar 21, 11 @ 2:47 pm
We can’t legalize every illegal activity to capture additional state revenue. Two wrongs will never make a right. Legalizing video gambling machines in bars and restaurants will most certainly increase the loss of citizen’s money to the gambling industry. This in money lost by citizens who could otherwise spend the money for food, clothing, and other living expenses.
Comment by Ruby Monday, Mar 21, 11 @ 5:47 pm