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Chicago opt-out would be huge loss for capital bill

Wednesday, Mar 10, 2010

* Oy

Chicago’s reluctance to allow video gambling in the city will deprive the state of almost $178 million annually, according to a new analysis by the Legislature’s budget-forecasting arm.

That shortfall could blow a nearly $2 billion hole in Gov. Quinn’s $31 billion construction program, which was partly reliant on proceeds from video gambling in bars and restaurants across the state.

“This puts a monkey wrench in a couple billion dollars worth of projects we can’t move forward on and do jobs,” said Rep. Raymond Poe (R-Springfield), who requested the estimates from the Commission on Government Forecasting and Accountability.

The panel projected that up to $475 million worth of wagering would occur on video gambling machines in Chicago if the city were to authorize them.

The commission said the state stands to lose between $95.6 million and $177.7 million by Chicago’s absence from the video gambling bandwagon.

As we’ve discussed before, Chicago has to approve video gambling before it can commence inside city limits and Daley has grumbled about not wanting to do it yet. He and the city council are up for election next year, and they’ve all got enough problems without adding this to the mix.

* Slots at racetracks is being pushed as a way to supplement (or even replace) video gaming revenues. It’s getting some bipartisan support, but Speaker Madigan’s spokesman sounded non-committal

Steve Brown, spokesman for Illinois House Speaker Michael Madigan, said approving slots for racetracks isn’t an immediate priority, but there is some interest brewing among members given the state’s $13 billion budget hole and underfunded capital construction program.

“I don’t know I would say there’s serious interest on the part of leadership,” Brown said.

Burns said the idea of installing slots at racetracks has been floated for years, to no avail. He’s hoping he’ll get more traction as the session continues.

“It’s always hard to read the tea leaves this early in the process,” Burns said.

Meanwhile, state Sen. Donne Trotter, a Chicago Democrat, introduced similar legislation in the Senate.

If Brown had been jumping up and down for joy, the Statehouse would’ve exploded with interest, so I get what he tried to do there.

- posted by Rich Miller


16 Comments
  1. - VanillaMan - Wednesday, Mar 10, 10 @ 10:06 am:

    Pretend we will go with reality here, and video gaming is a no go. Hoping we can collect money from gaming is like hoping someone dies to collect a life insurance policy to pay bills owed last year.

    Not very realistic, nor smart.


  2. - irish - Wednesday, Mar 10, 10 @ 10:13 am:

    Non-participants should not share the pie if there is any.


  3. - wordslinger - Wednesday, Mar 10, 10 @ 10:19 am:

    No machines, no money. So far, casinos and illegal operators have avoided getting hurt.


  4. - State Sen. Clay Davis - Wednesday, Mar 10, 10 @ 10:31 am:

    Video gaming in local bars is toast. The proven problems and external costs of video gambling are significant and local, while the benefits (cash) will go to Springfield.

    Clergy from the largest churches downtown are going to fight this every step of the way, since the Loop and River North have hundreds of bars. Their press conference denouncing the plan was followed the very next day by Daley’s statement of non-commitment.

    The Gov and GA better find another funding mechanism pronto.


  5. - Hank - Wednesday, Mar 10, 10 @ 11:03 am:

    Daley approves video gambling
    Quinn restores 10% share of income tax to the city


  6. - phocion - Wednesday, Mar 10, 10 @ 11:04 am:

    Raising the gas tax 6 cents per gallon would make up for losing video gaming revenues. It’s a no-brainer. Drop video gaming. Adopt the gas tax/user fee to fund road and bridge construction.


  7. - OneMan - Wednesday, Mar 10, 10 @ 11:26 am:

    You could also have the state lottery own the machines and increase the local take. Bet it would be harder for the city to take a pass then.


  8. - Dnstateanon - Wednesday, Mar 10, 10 @ 12:06 pm:

    This maybe good maybe, they could pick a number value say $20 billion dollars in Bonds they could afford to pay for Bonds and actually do the Capitol Bill and have the impact on the economy they suggested, we could use the jobs.


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  12. - unspun - Wednesday, Mar 10, 10 @ 3:31 pm:

    Isn’t this the same mayor that helped tank the casino bill a couple of years ago because the GA wouldn’t agree to turn Chicago into Las Vegas II? From a social standpoint, gambling is gambling, whether the one-armed bandit is in a tavern or on a boat.


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  14. - InParis - Wednesday, Mar 10, 10 @ 4:57 pm:

    If an area opts out of the potential revenue, then they can also opt out of the potential benefit that the revenue stream provides for.


  15. - Will County Woman - Wednesday, Mar 10, 10 @ 5:16 pm:

    why tell the munis they get nothing if they don’t go along? who picks up the tab when social ills increase two, three and four fold because degenerate gambling types neglect their financial obligations to home and family?

    the state can’t afford to provide more social serivices, and neither can the already cut bone dry munis!

    i cannot believe the callouness and creulty behind the entire push for video gaming or any more legalized gambling by the GA , Quinn and you people. the people who need this the least would be the ones most likely to subccumb to it, as well as its associated ills, and lose much, if not everything, in the process trying to chase a “quick and easy” dollar. you might as well propose legalizing hard drugs next. have you people no shame?

    LOL… “potential revenue”—the operative word being POTENTIAL. in truth we are talking about for sure net losses. think about it, why doncha! we’re already broke as is, why increase it?


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