Four Illinois casinos gain state approval to reduce hours

Maura Kelly

Wednesday, Aug. 13, 2003 | 9:17 a.m.

CHICAGO -- Four Illinois casinos will be open fewer hours and some expect to lay off workers, a move casino executives say is a result of higher state gambling taxes that lawmakers approved this spring.

But the move also could mean less revenue to the state and a loss of gamblers to neighboring states where casinos are open 24 hours, state gambling regulators said.

The Illinois Gaming Board on Tuesday approved requests from Alton Belle Casino, Empress Casino in Joliet, Harrah's Casino in Joliet and Hollywood Casino in Aurora to change their operating hours to 10 a.m. to 4 a.m.

Empress, Harrah's and Hollywood now are open from 8:30 a.m. to 6:30 a.m., and Alton Belle is now open from 8 a.m. to 6 a.m.

"This is a matter that is not being taken lightly by this board," board chair Elzie Higginbottom said. "It is a situation that is beyond, basically, the control of all of us."

The Legislature this spring approved sharp increases in casino taxes to help solve a nearly $5 billion budget deficit. Lawmakers voted to raise incremental taxes on riverboat casinos as high as 70 percent to pump $200 million into the state treasury.

The Gaming Board looked at whether reduced hours will mean the casinos will bring in less money and therefore pay less in taxes to the state.

Interim Board Administrator Jeannette Tamayo said she did not know how the reduced hours would affect state revenues, but said the hours in question are "typically your off hours" that bring in less money for casinos.

Casino executives said they do not expect a large loss of revenue to the state because the hours they now will be closed are among the least profitable.

"We think it is very reasonable and it is expected that our customers will adjust their habits to come in a little later and leave a little earlier," said Rodney Phillipe, general counsel for Hollywood.

Higginbottom said the board is more concerned that gamblers will travel to bordering states where some casinos are open 24 hours and do not charge admission. Empress, Harrah's and Hollywood now charge nominal admission fees, executives said.

"We're very concerned about how they advertise and how they promote the facilities in the state," he said after the meeting.

Phillipe said Hollywood plans to lay off 34 employees, mostly cage cashiers and some security agents. The casino will try to find other jobs at Hollywood for those employees, he said.

"When the 70 percent tax came around ... we said, 'Where can we capture some efficiencies?"' Phillipe said. "This seemed like a logical and reasonable place to eliminate those marginal hours."

Michael St. Pierre, general manager of Harrah's Casino in Joliet, said the casino laid off about 73 employees last month, and more could lose their jobs with the reduced hours.

The new hours are expected to be implemented within the next few weeks.

Under the new law, which went into effect July 1, casinos have to pay the state 70 percent of any revenue above $250 million a year.

For casinos that don't bring in as much money, their taxes will jump to 50 percent, up from about 35 percent, depending on their revenue. The higher taxes expire after two years or when a 10th casino opens in Illinois.

The bill also increases the $3 fee the state charges casinos for each customer, to $5 for the most popular boats and $4 for the rest.

Tom Swoik, executive director of the Illinois Casino Gaming Association, conceded that some gamblers might go to casinos that are open 24 hours in neighboring states.

"But with a 70 percent tax rate, you've got to cut back some place," he said.