Capitol Fax.com - Your Illinois News Radar

Internet gaming and Lottery drama

Posted in:

Illinois

* Many of the existing casinos want this new online gaming provision stuck inside the gaming expansion bill. Yes, it’ll cost them each $20 million up front, but the profits could be huge…

The debate over gambling in Illinois is expanding, from the well-worn arguments over new casinos and slots at Arlington Park to now whether every of-age Illinoisan should be allowed to gamble over the Internet.

Internet gambling could bring blackjack and craps to anyone who wants it, taking advantage of smartphone apps and an increasingly connected culture to let people play at any time or place. […]

This time, Internet gambling has been added to Link’s legislation. Under the plan, Illinois casino or track owners could operate gambling websites in addition to their traditional operations, and the new money they’d produce for the state largely would go toward paying down Illinois’s massive pension debt.

Only Illinoisans over 21 years old could play on Illinois sites, and an online gambling license would cost a casino owner $20 million up front.

* Meanwhile, Illinois Lottery Superintendent Michael Jones is under fire again…

Then there’s Chicago-based Independent Gaming Research, which used to be named Independent Lottery Research and used to be co-run by Mr. Jones until he divested his interest when he became lottery chief.

Internal memos I’ve obtained from a source who does not want to be named indicate that Mr. Jones persuaded Northstar to hire ILR as a contractor just a month after he took the job. But the lottery reversed the decision amid concerns over the ethical appearance thereof. I’m also told—by Mr. Jones and others—that Northstar since has hired ILR/IGR for considerable work in Illinois.

Mr. Jones says the state was getting bad research from other vendors, so he pushed for a replacement he knew and trusted. When Northstar raised the ethical concerns, he says he backed off. And he cheerfully concedes to promoting “a local company” to other lottery directors around the world. “I want a Chicago company to do well.”

Mr. Jones charges that all of this dirty laundry is coming from Gtech, which declines to comment. He says Gtech is the real reason the state’s ballyhooed move to sell lottery tickets on the Internet has flopped, with sales only recently hitting $100,000 a week. “The Internet portal they had was not intuitive . . . (it was) too difficult for customers to maneuver.”

Oy.

posted by Rich Miller
Monday, Mar 18, 13 @ 12:09 pm

Comments

“lottery tickets on the Internet has flopped, with sales only recently hitting $100,000 a week. “The Internet portal they had was not intuitive . . .”

Too many people playing better games at QBID.

Comment by Mouthy Monday, Mar 18, 13 @ 12:40 pm
Gambling is a sign of our problems, not the solution. Name one state or nation in the last 5000 years that has relied on gambling as a serious source of revenue. Until we get our spending under control, issues like gambling expansion are only a shell game hiding our real issues until real leaders emerge or we collapse.

Comment by the Patriot Monday, Mar 18, 13 @ 1:08 pm
==issues like gambling expansion are only a shell game hiding our real issues until real leaders emerge or we collapse.==

Why are so many people so content to watch Illinois dollars get gambled in other states? Shouldn’t we get some benefit from those dollars?

Comment by Roamin' Numeral Monday, Mar 18, 13 @ 1:14 pm
I’m surprised Michael Jones was in the country and available to reporters. I wish I had his travel schedule (and taxpayer-paid expenses.)

Comment by LincolnLounger Monday, Mar 18, 13 @ 1:17 pm
— Name one state or nation in the last 5000 years that has relied on gambling as a serious source of revenue. —

Uh, Nevada? NJ? Monaco? Macau?

Comment by wordslinger Monday, Mar 18, 13 @ 1:40 pm
Why are so many people so content to watch Illinois dollars get gambled in other states? Shouldn’t we get some benefit from those dollars?

I agree completely. Last year Illinois residents like almost all other States were allowed to bet horse raccing on sites like DRF or Twin Spires. Our esteemed legislators let that approval lapse and can’t even get that extension approved while the State loses millions during Kentucky Derby prep seasons.
ONLY In IllINOIS!!

Comment by downstate hack Monday, Mar 18, 13 @ 2:20 pm
Nevada is not doing too well right now. They have no other industry. NJ has a lot of other industry and is not looking at gambling as the solution.

Monaco is a 3rd world country that has no inocme tax and a banking system set up to create tax shelters for the Rich If you can figure out how to get IL some property on the French Rivera and allow us to hide money from the Federal Government I suppose we could do it.

Your examples make the point. Nevada is going nowhere fast, NJ is tied to NY, and Monaco is litterally banking on rich people who hide their money from the Government.

Gambling is not a sustainable industry and does not create sustainable industries.

Comment by the Patriot Monday, Mar 18, 13 @ 2:28 pm
–Monaco is a 3rd world country–

Really? Sign me up.

Comment by wordslinger Monday, Mar 18, 13 @ 2:35 pm
Patriot, I’m not suggesting that gambling is a be-all, end-all, but it’s a significant industry all over the country and the world, including here in Illinois.

Comment by wordslinger Monday, Mar 18, 13 @ 2:40 pm
Earth to Anti-Gambling People: No one believes gambling will cure all that ails the state’s budget. Gambling produces a few revenue streams. That’s it. Nothing more, nothing less.

Gamblers have a choice on where to gamble their dollars. Do we want Illinois to benefit or do we want to be shut out while other states benefit? Simple question.

Comment by Roamin' Numeral Monday, Mar 18, 13 @ 2:41 pm
Since when does a state employee get to travel to Europe? I thought Quinn had an Executive order forbidding out of state (country) travel?

Comment by Lucky Lotto Monday, Mar 18, 13 @ 2:56 pm
Right now the bookies are thankful that it does not include sportsbetting because of the multi billion dollar business they would be losing if internet betting contain sports betting! And that is tax free! I never understood how the state allows gambling but does nothing with the largest part which is sports betting whether it is on the nfl or college football or basketball or the nba or mlb baseball the state loses out on the tax money!

Comment by Coach Monday, Mar 18, 13 @ 3:00 pm
Lucky, Jones would be the first to tell you he isn’t really a State worker.

Comment by Arthur Andersen Monday, Mar 18, 13 @ 3:07 pm
===I never understood how the state allows gambling but does nothing with the largest part which is sports betting ===

Because MLB, the NFL and the NBA all oppose it. Nevada has no pro sports teams.

Comment by Rich Miller Monday, Mar 18, 13 @ 3:13 pm
So we had a huge criminal enterprise with the mob running the numbers racket. Solution, we legalized it and made it a state run operation to the tune of hundreds of millions and a reduction in crime and money to the mob.

So lets discuss other revenue streams which prop up criminal enterprise and instead of generating money cost to fight. Drugs and prostituion. Legalize and tax them as well. We are scraping the gambling barrel for money when we have a lot of other more lucrative routes to go. Legalize and tax these sources and the pension debt will be gone in 20 years .

Comment by Ghost Monday, Mar 18, 13 @ 3:18 pm
On days Balmoral is dark get program info for pick 4 races — sometimes more — at Northfield, Meadowlands, Pampano, & other tracks by going to ustrotting.com

Two longshots today at Northfield look tempting: race 5 - Mattonthechooch (7); race 7 - Cyclone Ashore (8).

Comment by Kasich Walker, Jr. Monday, Mar 18, 13 @ 3:48 pm
I’ve wondered — casinos pay a high percentage of their profits to the state in taxes. But the City of Chicago is not subject to taxation by other governmental units for its activities.

Would the Chicago casino not send any taxes to the state for its substantial profits?

Comment by Capitol View Monday, Mar 18, 13 @ 5:07 pm
==Would the Chicago casino not send any taxes to the state for its substantial profits? ==

I thought that Chicago was trying to keep all of the gambling taxes for itself (that is, if they were to get a casino).

Comment by Demoralized Monday, Mar 18, 13 @ 5:15 pm
the non state employee Jones should stop cashing those state employee pay checks. This is outrageous.

Comment by Talk Radio Monday, Mar 18, 13 @ 5:44 pm
Which of these criminal organizations has been detected trying to infiltrate gaming in Illinois:

A.) La Costra Nostra

B.) Russian Mafia

C.) Chinese Tongs

D) Outlaw Bikers

E.) Japanese Yakuza

F.) All of the Above

Answer: F

Comment by No name tonight Monday, Mar 18, 13 @ 7:22 pm
“Mr. Jones persuaded Northstar to hire ILR as a contractor just a month after he took the job. But the lottery reversed the decision amid concerns over the ethical appearance thereof.”

Did Mr. Jones take the state employees annual ethics exam? Sounds like he didn’t.

Comment by Concerned Voter Monday, Mar 18, 13 @ 7:49 pm
Warren Buffett called gambling a tax on ignorance. I totally agree with him.

Comment by Ruby Monday, Mar 18, 13 @ 10:22 pm
“Warren Buffett called gambling a tax on ignorance. I totally agree with him.

@ Ruby: Illinoisans can go to the track for free, watch some races, bet as little as a buck on pick four. Compare that with the cost of a ballgame or a trip to the theater.

Buffet could learn a little at the track.

Comment by Kasich Walker, Jr. Tuesday, Mar 19, 13 @ 8:19 am