Would you have bet that this year would end with a massive expansion of legalized gambling in Illinois—a whole new crop of casinos, racinos (combination racetrack-casinos), slots, and even online sports betting—all justified as the way to get legislative approval for a long-sought Chicago casino, but there would still be no Chicago casino in the works?
It looked like a done deal at the end of June, when Governor J.B. Pritzker signed an 800-page omnibus bill that—among other things—authorized six new casinos, 5,000 sports betting kiosks, and nearly doubled the number of gambling positions in the state, to just under 80,000.
That sent the mayor back to the drawing board. But not on the issue of ownership. She returned to Springfield in the fall with amendatory legislation that would reduce the taxes—now perceived as “onerous.” Even with the governor onboard, however, she wasn’t able to line up enough support in the short veto session, and it was never called for a vote. The plan now, according to its sponsor, State Representative Robert Rita (D-Blue Island), is to call for a vote on it after the legislature reconvenes in late January. You have to have a workable casino, Rita told me, in order to have casino revenue. The changes they’re seeking include extra time for all casino owners to pay a one-time “reconciliation charge” (equal to 75 percent of their most profitable year among the first three), and the elimination of interest charges on those payments. Also, potential owners will be required to make their proposals public. And Cook County’s share of the Chicago casino tax is halved—from 2 percent of AGR to 1 percent.
Would the original plan, for a one-third share of the pie for the owner, have attracted investors? It was never offered, so we don’t really know. But if this one makes it through the legislature, it’s a good bet that there will be takers. v
