In what has practically become a harbinger of spring, state lawmakers who favor gambling expansion began their annual push Wednesday by debating the latest plan to bring a massive casino to Chicago.
But neither Gov. Pat Quinn nor Mayor Rahm Emanuel breathed much life into the proposal, as they joined Republican governor candidate Bruce Rauner in declining to weigh in on the merits of the legislation.
The newest version separates plans for a Chicago casino with up to 10,000 betting positions from a broader package that would add a total of five new casinos across the state and allow slot machines at horse tracks. The shift in strategy is aimed at blunting arguments that the gambling market outside the city is already saturated with existing casinos and video gambling machines at neighborhood bars.
However, peeling a Chicago casino out of a larger gambling package presents its own problems as Downstate and suburban lawmakers may be less inclined to vote in favor unless they get a piece of the gambling pie. But sponsoring Rep. Bob Rita, D-Blue Island, said a new provision that would split revenue from a Chicago casino evenly between the city and state should help win support of legislators and the governor, who has vetoed two previous expansion bills.
While final approval of a major gambling deal has remained elusive for years, proponents contend the potential revenue can’t be ignored. The state faces a budget cliff if portions of a temporary tax hike expire as scheduled in January, while Emanuel is pushing for a property tax increase to help shore up the city’s struggling pension systems.
Under the latest measure, the city could use the money to pay for pensions, education or infrastructure. The state would have to divide the money between education and construction.
“This is an option,” said Rita, who is leading gambling negotiations. “These are the three areas where everybody is saying we need revenue.”
The Emanuel administration did not testify at Wednesday’s hearing, and a mayoral spokeswoman declined to answer specific questions about the proposal or address whether money from a Chicago casino is a viable source of funding to ease the city’s pension woes.
“The mayor does not believe it is appropriate to talk about gaming until we have addressed pension reform,” Emanuel spokeswoman Sarah Hamilton said.
A city pension reform bill is on the governor's desk awaiting action, and it’s possible the mayor does not want to risk angering a re-election-seeking Quinn by publicly pressuring him for a city casino.
The bill also includes a number of other changes aimed at winning the support of Quinn, who has cited a variety of objections to previous casino proposals. One alteration would give ownership of a Chicago casino to the state instead of the city. Another change would toughen restrictions on campaign contributions from gambling interests. A Quinn spokeswoman said the governor has yet to review the proposal.
Caleb Melamed, an attorney for the Illinois Gaming Board, questioned the possible state ownership, saying that structure would differ from current law in which a casino license is awarded to a private operator who overseen by state regulators. Others contended state ownership could lead to corruption or political hiring, and argued the state shouldn’t be on the hook for casino construction costs that a private investor would be willing to pay.
Melamed also questioned the size of the Chicago casino, saying the proposed 10,000 gambling positions would make it the largest casino in the world. Supporters contended there was enough demand to support a gambling operation of that size in Chicago, while Rita noted the city would have the option of scaling that down.
Lawmakers also debated an alternative proposal that calls for a smaller Chicago casino along with four others in southern Cook County, Lake County, Winnebago County and Vermilion County. That measure would also allow for slot machines at most horse racing tracks, though that has been scaled down from previous proposals that allowed 1,200 slots at tracks, the same number of betting position at existing casinos.
Instead, the legislation would limit tracks in Cook County to 600 slots, and those outside of Cook County could have 450. Fairmount Park in Downstate Collinsville would be the only track not allowed to have slots, a nod to resistance from the nearby Casino Queen in East St. Louis. That exemption, as well as the reduced number of slots, has led to opposition from officials representing the horse racing industry who contend their business has been kept at second tier status in Illinois.
Representatives for the state’s 10 existing casinos oppose either expansion proposal, saying their business already has been hit hard by the legalization of video gambling in bars, restaurants and truck stops.