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Home Illinois News

Illinois considers adding more casinos to help fill budget gap

Illinois Review by Illinois Review
May 19, 2017
in Illinois News
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SPRINGFIELD – Desperate state lawmakers are looking everywhere possible to find additional revenues for the state budget – even to the point of ratcheting up what was once called "sin taxes" – making money off of participants' destructive behavior. While they're not calling it "sin" anymore, Illinois' gambling and "medical" cannabis industries are the new places tax dollars are hiding. 

The Illinois Church Action on Alcohol and Addiction Problems (ILCAAAP) is one of the only voices left in Springfield dedicated to fighting the expansion of society-approved "sins" and the legislature's obsession with making money off of them. Their job is a tough and thankless one. 

ILCAAAP is not happy that this week Gov. Bruce Rauner told WBBM he might sign legislation allowing for a casino in Chicago and some other places in Illinois, but only if it's part of the overall "grand bargain" being negotiated to end the state's two-year budget impasse.

When asked if he would sign SB 7 for a casino in Chicago, Governor Rauner replied:

"There is a grand bargain being negotiated. I believe new revenues through the casino are part of that grand bargain, and I've said I'm open to whatever package can move the needle to a balanced budget, and I've said I'm open to local control. So the answer is, if that came as part of a package, I could be supportive of that," he said.  Read more and listen to Audio

Senate Bill 7, the massive gambling bill that doubles the amount of casinos in Illinois for the City of Chicago, Chicago Airports, Rockford, Danville, Lake County, South Suburbs, Williamson County, and at four racetracks, has been sent to the House.

SB 7 will be heard in the House Executive Committee on May 24 at 10:30 am, and if it moves thru the Illinois Senate, there's a good chance it will make its way to the governor's desk.

Just what Illinois needs – a gluttony of gambling venues when video gambling is available everywhere throughout the state, making casinos even more accessible and tempting to spend scant income in areas already drowning in crime, vacant houses and poverty.

"Legislators want to expand gambling and rely on Illinois residents to lose their money," ILCAAAP said in a release Friday morning. "This is an irresponsible plan to try and balance the State budget."

Talking points to oppose SB 7

  • SB 7 legalizes a perpetual casino license for Chicago, which cannot be revoked or suspended.  All property owned or leased to the Chicago Casino Development Authority is tax exempt.  No other casino license contains these clauses. 
  • SB 7 lowers the tax rate on casino gambling and has separate categories for electronic gambling devices and table games.  This will mean lower revenue for the State and host communities.
  • Tax break for casinos.  SB 7 exempts "comps" from being taxed-hotel rooms, food, coupons, and other services provided on a complimentary basis to customers.  Up to 30% could be tax exempt.  This was done in Pennsylvania and resulted in LOSS of revenue to the State.
  • SB 7 legalizes progressive jackpots for slot and video gambling machines at casinos and video gambling establishments with NO limits for cash awards.  The entire jackpot does not have to be paid to the winner at one time!  This will impact problem and pathological gamblers and increase harm to individuals and families.
  • There are over 26,000 video gambling machines operating in neighborhood casinos.  SB 7 would double the amount of the maximum for video gambling and greatly increase the maximum jackpot. 
  • Gambling interests overestimate the amount of revenue generated.  Revenue projected in SB 7 could be much lower than expected, especially with the tax breaks, lower tax rates, saturation of casinos, and expansion of video gambling.  

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