Capitol Fax.com - Your Illinois News Radar

Gaming bill heads to House

Posted in:

Illinois

* The Senate passed gaming expansion with 32 votes yesterday, four shy of a veto-proof majority, although proponents insisted they would’ve reached that mark if all their people were in the chamber. Why is a veto-proof majority important? Because the governor is not yet on board…

While signaling some encouragement for the bill, Quinn’s office stopped short of an outright endorsement of the plan, saying more “improvements” are likely necessary though not specifying them. He has vetoed two earlier gambling-expansion packages dating back to 2011.

“We’re reviewing the bill, it appears to be moving in the right direction,” Quinn spokeswoman Brooke Anderson said.

* More…

“The ultimate authority is the Gaming Board on every facility in the state, including the city of Chicago,” said sponsoring Sen. Terry Link, D-Waukegan.

That contention, however, will go under the microscope. An aide to the governor said Wednesday that the administration’s main concern is making sure the measure clearly spells out the Gaming Board’s authority. That’s still fuzzy, the aide contended.

Dot points for the gaming bill are here. Expect further changes in the House. Rep. Lou Lang was cut out of negotiations, so they’re gonna have to hear him out now.

* One opponent’s argument…

Sen. Dale Righter, R-Mattoon, raised concerns that the campaign contribution ban could crimp the ability of small-business owners, bar owners and veterans groups to give even small political donations if they install slot machines.

“What we don’t want is these people back home, who’ve been waiting forever for these machines in their nonprofit facilities, to then write a $20, $50 check to a member of the General Assembly as a campaign contribution and the next thing you know, someone from the Gaming Board is knocking on their door saying that was against state law and, by the way, here’s the penalty,” Righter said.

It’s a good argument, but I doubt Righter would be for it even if the bill was changed.

* Benefits…

Link said the bill would provide a financial windfall for the state. The Commission on Government Forecasting and Accountability estimated revenues from licensing fees for the slot machines at racetracks, new casinos and new gaming positions at existing casinos would bring in $1.2 billion initially, and $268 million annually after that. “It not only will save thousands of jobs, it will create thousands of jobs, and it will help our educational system for the future,” he said. […]

Link said that according to the COGFA report, of the $268 million projected proceeds, about $128.7 million is slated to go to education. He said he hoped Quinn would recognize the “huge effort” made to incorporate the governor’s suggestions into the current bill.

* But…

Representatives from existing casinos say they think the revenue potential is not that large.

Tom Swoik, executive director of the Illinois Casino Gaming Association, said most of the existing operators are not interested in new gaming positions and believe the expansion would cannibalize the 10 already-existing casinos in the state. Swoik said a lot of the money estimated to come from the expansion was already spoken for and would not be available to go to schools. “We believe that this is going to leave very little money for education,” he said.

* Rahm…

“I have said repeatedly that if Chicago were to build a casino, all revenue would be directed toward modernizing schools in our neighborhoods and communities,” Emanuel said in a statement. “I encourage all parties in Springfield to take swift action on the gaming bill and, in so doing, create the opportunity for us to rebuild and renew our public education infrastructure in the city.”

* Sun-Times…

The improvements in this bill include:

† Unworkable deadlines that would have made it too difficult for the Illinois Gaming Board to do its oversight job adequately have been eliminated.

† Internet gambling, which was not fully vetted, has been dropped from the bill.

† Ethics measures, including a ban on campaign contributions by casino operators, have been strengthened.

† A provision that new revenues from a Chicago casino be dedicated to school construction and modernization has been added.

The bill also would create a separate inspector general for the Chicago casino. Our concern in this regard, as the legislation moves forward, is that the new inspector general position not co-op the powers of the existing — and highly vigilant — Gaming Board.

posted by Rich Miller
Thursday, May 2, 13 @ 10:36 am

Comments

–† A provision that new revenues from a Chicago casino be dedicated to school construction and modernization has been added.–

Charter schools, no doubt, if Emanuel gets his way.

Comment by wordslinger Thursday, May 2, 13 @ 10:42 am
I’m not against gambling (morally or otherwise) but this is ALWAYS the thing with any gambling:

—“I have said repeatedly that if Chicago were to build a casino, all revenue would be directed toward modernizing schools in our neighborhoods and communities,—

With Lotto, or riverboats, etc. Its always for schools. With all the legal gambling in this state we are always promised it will help schools, yet there continues to be ungodly crappy school districts. So either they arent getting the money or they get that money and the government spends the other money they would have given them somewhere else. Isnt that a net-zero gain?

or am I completely off base here?

Comment by RonOglesby Thursday, May 2, 13 @ 10:58 am
Ron: You hit the nail on the head for sure. Can’t someone please find a new and amusing way to snow us? So unoriginal!

Comment by Loop Lady Thursday, May 2, 13 @ 11:14 am
It is time to pass it now! Since ADW expired in Jan., Mark Laino of IRB said the IRB has lost $175,000 per month. This is the primary source of funding for the IRB and they will be running into a deficit by July. I could care less about this personally but if this agency has been losing $175,000 per month because our legislature didn’t do their job and renew this agreement back last year then this shows how terrible the legislature and Governor is at running the finances for this state! Now they have tied it to the Gambling bill and who knows now if that will pass. I have a neighbor that will be going to Indiana for the weekend so he can have access to betting the Kentucky derby for himself and the slots for his wife. He will spend his weekend at Hoosier park and Indiana will come away the winner as he will stay there, eat there, and gamble there. So go ahead and pass this gambling bill now so I won’t have to worry about you raising taxes on me such as income taxes again, or a tax that affects me personally. At least I have a choice to gamble and I know that money will be taxed. I have no choice when they keep raising my income tax because they need more revenue!

Comment by Coach Thursday, May 2, 13 @ 11:17 am
Why was the internet gambling provision dropped from the bill? Seems like a no brainer to me. How is it ok to run the Illinois Lottery online but not allow someone to play poker online?

So far NV and NJ have already allowed online gaming, with several more states to follow. Not sure why it got dropped so quickly or what was even controversial about it.

Comment by StringerBell Thursday, May 2, 13 @ 11:35 am
I’m still holding out hope that NJ is successful in allowing betting on sports. I know that if they are allowed to operate sports gambling (online or at casino’s/tracks/OTB’s) it’s not a slam dunk that other states will be allowed, but its a step in the right (or wrong depending on viewpoint) direction. People are betting sports any way you look at it (offshore gambling sites/illegal bookies.) Its time the states tapped into that revenue.

Comment by Verbal Kint Thursday, May 2, 13 @ 11:52 am
Regarding the ban on campaign contributions, perhaps Righter could offer an amendment that would exempt those licensed that have less than 20 machines or something along those lines. There is a big difference between the owner of a tavern with a few machines and the owners of a casino or race track. The law should acknowledge that.

There must be a workable way around this, and Righter’s concerns shouldn’t derail the vote. I’m not a big fan of gambling expansion, but if this provides additional revenue to state and local governments, it’s a new plus in my book and outweighs the negatives.

Comment by 47th Ward Thursday, May 2, 13 @ 12:08 pm
Is there anything in the gaming bill that would place slot machines at the Illinois tollway oases?

Comment by Broken Thursday, May 2, 13 @ 12:15 pm
To: Springfield

From: All future U.S Attorneys for the Northern District of Illinois, all future assistant U.S. Attorneys for the Northern District of Illinois, Reporters, Criminal Defense Attorneys, thugs/mobsters.

Re: Casino in Chicago

Thanks for this!

To: Springfield

From: Voters tired of watching lazy politicians come up with political stunts instead of real policies which promote positive economic growth, social service agencies/families of people/the poor who disproportionately are negatively affected by new casinos.

Re: This

Thanks for nothing.

party on garth!

Comment by shore Thursday, May 2, 13 @ 12:55 pm
So the state of Illinois taxpayers all pay for regulation of the chicago casino but only chicago (or chicago charter schools) get the revenue from this.

Also if were banning the slot owners from donating to political campaigns can we also ban the charter schools rahm will give the casino revenue to from donating to political campaigns? Just wondering.

Comment by hisgirlfriday Thursday, May 2, 13 @ 1:18 pm
Good one Shore!

Comment by Loop Lady Thursday, May 2, 13 @ 2:17 pm
–I’m still holding out hope that NJ is successful in allowing betting on sports.–

They’ll have to roll the major sports leagues to do so, and those guys have some pull.

I know it makes no sense (since they all publish injury reports; what are those for?), but they’re down on legal bookmaking in states where they have franchises. That’s why Nevada and Delaware have the legal books.

Illegal bookmaking, they’ll enable, lol.

Comment by wordslinger Thursday, May 2, 13 @ 2:29 pm
While I’m in favor of gaming expansion, I’m annoyed to see the Chicago casino evenue tied specifically to school construction (read Charter Schools as wordslinger pointed out).

I wish we could have gaming expansion with revenue tied simply to helping balance the budget, rather than tying it to new spending.

Comment by Robert the Bruce Thursday, May 2, 13 @ 2:30 pm