GOVERNOR REJECTS GAMBLING PROPOSAL

Illinois Governor Blagojevich has rejected a proposal to open a gambling casino in Chicago. His announcement comes a day after Chicago Mayor Richard Daley's strong endorsement of the idea for economic reasons. The governor says gambling is not the way to solve the state's budget problems.

The Governor adds, "Putting a casino in Chicago opens the door for all of us to take the easy way out, to making the difficult and necessary budget decisions that we need to continue to reform state government."

Senate President Emil Jones says he will push forward with gambling expansion legislation that will include a Chicago casino.

http://www.wandtv.com/SendPage.asp?5148

Lawmakers say expansion could bring $2 bil. to state.

SPRINGFIELD (AP) — Senate Democrats moved forward with a massive gambling expansion plan Wednesday that includes a city-owned casino for Chicago, despite Gov. Rod Blagojevich vow to veto it if it passed.

In a joint hearing of two Senate committees, lawmakers dissected the gambling proposal, which supporters say could pump as much as $2 billion into struggling state coffers next year.

The plan, to be pushed for a vote early next week, would authorize four more riverboat casinos, allow 800 more slot machines in the state's current nine operating riverboats, lower taxes on the boats and allow slots at horse racing tracks.
The centerpiece would be a huge, 3,000-gambling position, land-based casino for Chicago pushed by Mayor Richard Daley that would be expected to generate as much as $700 million in state tax revenue each year.

Blagojevich announced Tuesday that he would veto any bill allowing a casino in Chicago, and he said again Wednesday that such a casino would fundamentally change the intent of gambling in Illinois to help economically struggling areas. He did not rule out more casinos elsewhere.

The governor's opposition to a Chicago casino hasn't fazed Senate leaders, who argue the financial benefits of the deal simply cannot be ignored when the state is facing a $1.7 billion budget deficit.

``If (Blagojevich) wants to slap that in the face, that's his prerogative,'' said Sen. Denny Jacobs, an East Moline Democrat pushing the expansion proposal.

Senate President Emil Jones, D-Chicago, suggested lawmakers may provide enough support to make the governor's opposition moot.

``Legislators have been known to override governor's vetoes in the past,'' Jones said. ``It won't be nothing new.''

Chicago officials urged legislators to back their plan, promising to pay hundreds of millions of dollars upfront to get the casino license and pledging strict scrutiny to make sure its operated correctly. The city desperately needs the money, they argued.

``The rest of Illinois already has gaming,'' said John Harris, Daley's budget director. ``Why shouldn't Chicago?''

The gambling expansion plan also would include new riverboats for Chicago's south suburbs and for Rockford and Waukegan north of the city to lure gamblers who now go to other states to spend money and also to woo lawmakers from those areas.

Many lawmakers aren't ready to commit support yet, though, and the Legislature is nearing the scheduled end of its session.

Gambling opponents warned legislators of the damaging social effects of such huge gambling expansion, such as more addiction, when other budget-saving avenues are available.

``Constituents aren't calling you asking you to add more gambling in Illinois,'' said the Rev. Tom Grey of Rockford. ``This is driven by politicians and promoters.''

Senate Republicans aren't ready to rule out the idea either, arguing it may be a better alternative than Blagojevich's proposal to balance the budget with large fee increases on businesses and more borrowing.

``We're willing to talk about it,'' said Senate Minority Leader Frank Watson, R-Greenville. ``This may be the only issue that's on the table that does bring any revenue, and I think the governor's going to need some revenue.''

http://chicagobusiness.com/cgi-bin/news.pl?id=12483

we're following this too - another funny situation like all the others (maryland - PA - kansas)

the politics of it is just humorous


Governor says no casino for Chicago
Madigan vows to `pull the plug' on Rosemont deal
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By Ray Long and John Chase, Tribune staff reporters. Tribune staff reporters Christi Parson, Gary Washburn and Molly Parker contributed to this report

May 12, 2004

SPRINGFIELD -- Gambling expansion efforts in Illinois appeared shaky Tuesday after Gov. Rod Blagojevich rejected Mayor Richard Daley's plan for a city-owned casino and Atty. Gen. Lisa Madigan acted to scuttle the Illinois Gaming Board's move to allow a casino in Rosemont.

A day after Daley asked lawmakers to let him open a huge casino near downtown, Blagojevich vowed to veto the legislation if it passed.

Blagojevich did not rule out possibly backing new suburban casino proposals. But his absolute opposition to Daley's showcase initiative, combined with conditions he set for approval of more gambling elsewhere, may have rendered the passage of any gambling package politically difficult.

The fast-moving developments come against a backdrop of continued economic distress in both the state and city budgets that has set officials scrambling to find new sources of revenue to avoid tax increases or deep cuts in programs.

Blagojevich had once hoped to buttress next year's budget with a quick infusion of at least $350 million from the sale of an unused riverboat license now held by the bankrupt Emerald Casino.

But Madigan made it clear she would fight the Gaming Board's decision to award the new casino to Rosemont and that it could be years--if ever--before the state could get any money from that deal. She announced plans to reopen disciplinary hearings aimed at revoking Emerald's license, which could block the deal allowing sale of the license to a Mississippi-based casino chain that wants to build in Rosemont.

Despite the governor's challenge to the mayor's plan, Senate President Emil Jones (D-Chicago) vowed to push forward with gambling legislation that would include casinos not only for Chicago, but also for the north and south suburbs and possibly Rockford.

But Blagojevich said he opposes any package that includes a Chicago casino, and he chastised lawmakers for looking to expand gambling to fill the state's budget hole.

Building a casino in Chicago "prevents us from making the hard decisions that are necessary to continue to reform the system here in Springfield and get our fiscal house in order," the governor said.

Blagojevich said he would keep an "open mind" about expanding gambling outside of Chicago, but only if lawmakers embrace his call for higher taxes and fees on businesses.

Ever since he was a candidate for governor, Blagojevich has given conflicting signals about gambling, at times appearing intrigued by expansion and at times declaring his flat opposition to it.

In fact, City Hall sources said Daley aides discussed the mayor's plan with Blagojevich staffers at least twice last week and got noncommittal responses.

"We didn't get a flat-out `no,' [more] like `we'll take it under advisement,'" said one mayoral aide in explaining why Daley unveiled his plan Monday. "We didn't get anything definitive [from the governor's office], and we could not wait forever."

Daley flew to Paris on Tuesday but issued a statement expressing disappointment.

"Unfortunately, the governor announced his position before we had an opportunity to present our case and demonstrate the significant financial benefits [a casino] would provide to city and state taxpayers," Daley said.

The mayor said Blagojevich has assured the city he will find more money for schools, parks and neighborhoods, though he didn't explain how. The promise came in a phone call Blagojevich placed to Daley on Tuesday before the mayor left.

In explaining his decision at a Springfield press conference, Blagojevich said Illinois legalized gambling to give a shot in the arm to economically struggling river towns, and Chicago didn't fit that definition.

"Once you change the underlying philosophy that governs gaming in Illinois, a philosophy of a limited number of riverboats in economically depressed areas, you have fundamentally changed the landscape of gaming in our state," Blagojevich said. "... A mega-casino in Chicago is not a difference of degree. It's a fundamental difference that speaks to the future of our state."

In explaining why he was resisting Daley's proposal and the money it promised, Blagojevich invoked a rambling metaphor likening himself to the mythological Greek hero Odysseus who had himself lashed to a ship mast to resist the song of the Sirens.

"He understands that song is very tempting, very enticing and very dangerous," Blagojevich said. "... That happens to me sometimes. I have to fully confess that the idea of all this money could solve a lot of our problems. But it doesn't seem right to me."

Only minutes after Blagojevich began speaking, Madigan announced her decision on the Emerald license in Chicago.

Madigan said reopening the Emerald disciplinary hearings would all but kill plans for Isle of Capri to complete its purchase of the license and build in Rosemont.

Madigan said she decided to "pull the plug" on a deal she struck earlier with Emerald because the Gaming Board had not adequately explained why it ignored staff recommendations and picked Isle of Capri over other bidders for the license. Madigan also said the board had failed to explain why it had become comfortable with Rosemont as a casino site despite questions about whether the suburb's longtime mayor, Donald Stephens, has links to organized crime. Stephens has denied those allegations.

Madigan predicted Rosemont would fight her in court, possibly tying up the license for years. If lawmakers want a quick infusion of casino revenue, she said, they may want to deactivate the Emerald license and replace it with another.

"It is very clear to us at this point that the Illinois Gaming Board members failed in making sure that bidding procedures for this license were, in fact, fair," Madigan said. "There are numerous questions that still remain to be answered that they have failed to answer. In addition, Rosemont has pursued a scorched-earth policy in terms of litigation and therefore this will not be ending any time soon."

Emerald also had hoped to open in Rosemont, but in 2001 the Gaming Board denied permission as it accused company officials of lying to regulators and selling shares to investors with mob ties. The disciplinary hearings before an administrative law judge were begun in 2002 but were suspended when Emerald entered talks with the state about a deal to sell the license.

An attorney for Emerald expressed disappointment with Madigan's position and said the firm had kept its side of the deal with the state.

Rosemont attorney Robert Stephenson said the village may ask a federal judge overseeing Emerald's bankruptcy on Thursday to bar Madigan from interfering with the sale of the license to Isle of Capri.


Copyright © 2004, Chicago Tribune

Illinois legislators are expected to act this week on a proposal allowing new casinos and slot machines at racetracks to help reclaim some of the millions of dollars Chicago-area residents are spending at Indiana riverboats.

Despite the reluctance of Gov. Rod Blagojevich to expand gambling, the proposal to create four new casino licenses is gaining support in the Illinois legislature, said Cindy Davidsmeyer, spokeswoman for Senate President Emil Jones, D-Chicago.

Jones is leading the push for the plan, which would allow three of the new casinos to locate in the Chicago area.

The motivation is simple, said Davidsmeyer: Too much gambling money that Illinois could tax is flowing into Indiana through the five riverboats in Lake and LaPorte counties.

"That's exactly the reason Senator Jones thinks we need a riverboat in the south suburbs. We need to keep Illinois money in Illinois," Davidsmeyer said.

A Senate committee conducted an informational hearing on the proposal last week, and "a bill is being drafted and should be introduced this week. If it is approved in the Senate, it will go to the House," she said.

Democrats control both branches of the Illinois legislature. The governor also is a Democrat but has said he is not in favor of expanding gambling to balance the state budget. And last week, he reiterated his opposition to a casino in Chicago.

In 2003, the five northwest Indiana casinos attracted about 13 million visitors and took in more than $1.1 billion, according to reports filed with the Indiana Gaming Commission. The reports also showed they paid more than $348 million in state and local taxes on admissions and wagers.

And much of that money came from Illinois. According to Gaming Commission reports and casino operators, about 70 percent of the customers for the northwest Indiana boats come from out of state, with the majority driving across the state line from the Chicago area.

Overall, Indiana's casinos mean a lot to the state budget. That's because tax revenues from the 10 riverboats statewide are expected to account for about 5.5 percent of Indiana's $10.6 billion operating budget in 2004.

John Busam, editor of Midwest Gaming and Travel in Waseca, Minn., said the Illinois proposal looks like a good bet.

"It has a better than 50-50 chance of getting approved," he said. "They are building a coalition and may be able to come up with a bill that could override a veto (by the governor)."

Busam said there are several reasons Illinois gamblers like the Indiana boats, including the fact they have more slot machines and table games, higher betting limits and longer hours.

Three of the northwest Indiana boats -- Horseshoe Casino in Hammond, Majestic Star Casino in Gary and Harrah's in East Chicago -- are among favorites cited in the annual Reader's Choice survey, which will be released in the June issue of the magazine.

Busam said Indiana officials shouldn't be too concerned about the possibility of the new competition.

"I still believe the new casinos would have minimal impact on Indiana," he said.

http://www.indystar.com/articles/7/146896-2887-103.html

THE PROBLEM IN IL. WITH THE GOVENER BLOWJOBVICH IS THAT HE HAS ALL READY RUINED GAMBLING IN THIS STATE. HE RAISED THE TAXES ON THE BOAT'S SO NOW THEY CHARGE AND HAVE CUT OUT MANY OF THE COMP'S BECAUSE OF THE USE TAX. MANY PEOPLE HEAD OVER THE BOARDER TO INDIANA TO PLAY BECAUSE YOU GET MORE BANG FOR YOUR BUCK..G

May 20, 2004 — A massive plan to expand gambling across Illinois and into Chicago, where the governor staunchly opposes the mayor's push for a city-owned casino, has hit the Statehouse with only days left in the session.

The proposal calls for more gambling positions in the current riverboat casinos, slot machines at horse tracks and four new casinos -- in Chicago, the city's south suburbs, Waukegan and Rockford. It cleared its first legislative hurdle Wednesday when the Democrat-controlled Senate Executive Committee approved it 8-5 along partisan lines.

Supporters tout the expansion as a way to generate $1.8 billion over the next year, enough to fill an estimated $1.7 billion gap in the state budget.

They say the money would come from the sale of licenses authorizing the new casinos and the new revenue that adding thousands of gambling positions would bring. But questions remain about when the state could actually see that money and whether the proposed licenses could even win approval, particularly with the governor's vow to veto any plan that includes a Chicago casino.

The highlight of the 180-page gambling expansion measure, released for the first time Wednesday after weeks of work behind the scenes, is that 3,000-position land-based casino in Chicago, pushed vigorously by Mayor Richard Daley.

Gov. Rod Blagojevich, a fellow Chicago Democrat publicly attacked the plan the day after Daley announced it last week, arguing that the intent of allowing gambling in Illinois was to help economically struggling areas, not the state's largest city.

Senate Democrats still defiantly pledge to move ahead, saying Wednesday that they are confident the measure would get enough support to override the governor's opposition.

"When it's finally put together and all the kinks are worked out, it will end up being a veto-proof piece of legislation," said Senate President Emil Jones, D-Chicago.

Advocates have many kinks to iron out as the measure heads to the Senate floor.

Under the proposal, Chicago would own and regulate its own casino and could put up a temporary facility on the Chicago River until a permanent, land-based casino was ready to open. The other new casinos would be overseen by the state rather than their municipalities, as the state's nine currently operating riverboat casinos are, and they might not be allowed to have temporary facilities, supporters said.

Sen. Denny Jacobs, a Democrat from East Moline who sponsored the measure, said much of the $1.8 billion in revenue would be used to fund education, including $75 million for a school construction program the governor has proposed renewing. Blagojevich's budget proposal doesn't include a specific revenue source for the program.

Exactly how all of the revenue from the casinos would be divvied up is still up for debate.

Republicans said they couldn't vote for the bill as long as Chicago was allowed to own a casino and until they knew how the revenue would be spent. Some Democrats agreed that any gambling revenue should be used to replace fee and tax increases on businesses that Blagojevich pushed last year and is pushing this year to solve large budget gaps.

"The more you take care of the concerns of our membership ... the more people are capable of voting for this," said Senate Minority Leader Frank Watson, R-Greenville. "We're just not going to give them a blank check."

Jacobs said it makes no sense for Blagojevich to oppose an idea that could generate huge amounts of money during tough financial times, but he acknowledged the measure is far from ready and the Legislature is already expecting to be working on the budget past its scheduled adjournment date Friday.

"This bill has some massaging to do, and we all know that," Jacobs said.

http://abclocal.go.com/wls/news/052004_ap_ns_senatecasino.html

State Senate President Emil Jones summoned more than 30 representatives of Illinois casinos and horse tracks to his Springfield office Thursday to tell them that a legislative push to massively expand gambling stands little chance of passing without them getting behind the effort, sources familiar with the gathering said.

Jones (D-Chicago) and Sen. Denny Jacobs (D-East Moline), an architect of riverboat gambling in Illinois, told casino and track lobbyists and executives, including Arlington Park's Richard L. Duchossois, they "expected everybody to get on board," a source said. Jones also stressed it was important to keep Chicago and the south suburbs in the gaming mix.

But even if the casino-horse rivalry that has contributed to the death of past gambling bills ends, the current legislation still appears on shaky ground. As more details emerged Thursday, it became clear there will be plenty of things for opponents to attack in the bill, which is designed to raise $1.8 billion for the cash-strapped state.

A first wave of criticism is set to come today in northwest suburban Arlington Heights, where at least two village trustees will join a community group in decrying a provision that would prevent the village from using its home-rule authority to stop slot machines from coming to Arlington Park.

An executive with another horse track -- while supporting slots at tracks -- said he agrees the state shouldn't infringe on communities' rights. That shows how even little things in the 184-page bill could become sticking points on its path to Gov. Blagojevich, who has pledged to veto it.

"Obviously, slots for the tracks are good for the horsemen," said Charles Bidwill III, president of the National Jockey Club and vice president of Hawthorne National LLC, which would see 1,000 slot machines come to its Hawthorne Race Course along the Cicero-Chicago border. "We have had ongoing conversations with our surrounding communities about this, and they're excited."

That's not the case in Arlington Heights, where 1,150 slots would be routed to Arlington Park.

"We as a [village] board are on record as opposing more gambling," said Village Trustee Thomas Stengren, who will attend an 11:30 a.m. rally today against the legislation at the village's North School Park. "They're talking about making that a casino over there."

State law limits Illinois' nine existing casinos to fewer than 11,000 "gaming positions" now. The proposed gambling package calls for as many as 21,000 new positions spread between four new casinos in Chicago, Waukegan, Rockford and the south suburbs, as well as five horse tracks and the nine existing casinos, according to figures provided by the Illinois Casino Gaming Association, which is taking no public position on the legislation.

http://www.suntimes.com/output/news/cst-nws-slots21.html

Fifty-six percent of registered voters surveyed for the Chicago Tribune/WGN TV poll say they oppose increasing the number of casinos, while 25 percent favor the idea. Nineteen percent say they have no opinion.

The poll follows months of debate by state lawmakers over whether gambling is the answer to chronic fiscal problems. Supporters have been pushing a massive gambling expansion plan as a way to generate one-point-eight billion dollars to help fill the state's budget deficit.

http://www.wifr.com/home/headlines/800477.html