Illinois house OKs part of gambling package

Ryan Keith

Monday, May 12, 2003 | 9:43 a.m.

SPRINGFIELD, Ill. -- As a legislative committee approved part of a massive gambling expansion package, the major players at the state Capitol said the serious work has just begun.

The Illinois House's gambling committee voted 8-2 Thursday for one of three proposals sponsored by Rep. Lou Lang, D-Skokie -- a package Lang says could wipe out about half of the state's anticipated $5 billion deficit next year.

The measure headed to the House floor would allow hundreds more slot machines at riverboat casinos and put thousands of slots at horse tracks for the first time.

Two other measures sponsored by Lang -- giving Chicago its own casino and legalizing video poker machines at restaurants and bars -- will be brought up for consideration soon, he said.

Although Lang says he's "highly confident" his proposals can pass the Democratic Legislature, gambling interests, fellow lawmakers and even Lang say a deal is a long way away.

"There's going to be a lot of negotiations on that," Senate President Emil Jones, D-Chicago, said.

Gambling expansion has been a popular topic at the Capitol for years, but the final weeks of this spring legislative session may be the best hope for those who see the industry as an untapped gold mine for dwindling state coffers.

Faced with a massive budget deficit, lawmakers have few options. They can raise general taxes or slash state services, but that would have severe political consequences. Or they can find new revenue, a difficult task in such tight financial times.

Enter the gambling industry.

Groups have been at the Capitol for months asking legislators to consider their plans, everything from unlimited slots at boats and tracks to creating more casino licenses.

In most years, legislators would balk at such ideas, fearing a political backlash. But with uglier alternatives staring at them, many say the time is right for a major gambling package to pass.

"I think the need is there, and kind of the planets are aligned," said Ray Shroyer, a lobbyist for legalizing video poker. "They're willing to listen more."

But there will be plenty of obstacles to clear.

Lawmakers say they likely will work off Lang's proposal, trying to fine-tune a compromise among the various gambling interests and their opponents.

The casinos don't want tracks to get too many slots because that might siphon off some of their business. And legalizing video poker machines could put a dent in casino and track profits, too, while restaurants and bars argue they can provide a much bigger economic benefit than a handful of boats and tracks.

The gambling interests say they can support most of Lang's ideas, as long as their piece isn't cut out of the puzzle.

"If people start chiseling away bits and pieces, then it's probably not going to work because as a total package it makes sense," said Tom Swoik, executive director of the Illinois Casino Gaming Association representing the nine riverboats.

Gov. Rod Blagojevich, who ran on a campaign promise to oppose gambling expansion, has softened that stance recently by saying he would consider proposals approved by the Legislature.

According to the American Gaming Association, Illinois ranked second behind only Nevada in the amount of taxes paid by casinos last year at $666 million and fourth in the nation in the amount of casino-generated revenue with $1.8 billion in 2001, the most recent year for which figures are available. Swoik said Illinois would far surpass Nevada for collecting the most casino tax revenue under Lang's proposal.

Gambling opponents say they're outraged that legislators would ignore the societal costs of expanding gambling just for some extra revenue.

"Families are being devastated and destroyed by gambling and will only get worse with this huge expansion," said Anita Bedell, executive director of Illinois Church Action on Alcohol and Addiction Problems.

Advocates say it will be up to a few lawmakers and legislative leaders to finalize a deal, and that likely will happen behind closed doors and in the final days of the session.

Gambling supporters say they cannot afford to botch such a unique opportunity.

"We understand we've only got one bite of the apple, so we want to give the best bill we possibly can," said Sen. Denny Jacobs, an East Moline Democrat who heads the Senate's gambling committee.