Thursday, January 06, 2011
 
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Latest proposal has new tweaks for existing gambling

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[January 06, 2011]  SPRINGFIELD -- It's not just new casinos that would bring new gambling opportunities to Illinois under the latest version of the plan to expand gaming in the state.

HardwareLawmakers have been pressing forward on legislation that would open five new casinos, add slots at racetracks and allow the state's 10 currently operating riverboats to expand.

State Rep. Lou Lang, D-Skokie, on Wednesday unveiled an updated version of that plan that would sweeten the pot for existing boats and require a massive roll-out of new gambling opportunities before any of the new casinos could be built.

Lang's legislation, Senate Bill 737, is headed to the full Illinois House for a vote as early as Thursday. He said the Senate has already OK'd the "basics" of the proposal.

"This (legislation) as written will create about 50,000 new jobs," Lang said. "It will create about $1 billion in revenues for the state of Illinois and will provide about $1.3 billion in one-time, upfront fees."

Lang is quick to say most of that $1.3 billion in upfront money will go toward Illinois' $5 billion backlog of unpaid bills. He has added other provisions that are aimed at current riverboat operators, who oppose the gambling expansion plan.

"(The new additions) provide that our racetracks in Cook County may relocate within three miles of their current location, under certain conditions. It provides a $2 million renovation tax credit to be utilized by all riverboats in the state of Illinois," Lang said.

"The (legislation) provides that all of the (casinos) authorized under this bill might build temporary facilities. Because we know that it may take up to two years to build a new (casino). We want to get the money flowing, we want to get people hired, we want to bring in this money."

But those temporary sites would have to wait for Illinois' other gambling expansion to get up and running first. Lang's legislation requires that 2,000 video poker positions be opened before new casinos are established.

Existing casinos also would see a tax sweetener under Lang's legislation. The nine current riverboats and the one casino being built in Des Plaines would receive a decade-long, 5 percent credit to help offset any losses to the new casinos.

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Tom Swoik, director of the Illinois Casino Gaming Association, said Illinois' riverboats are already losing money because of the sluggish economy and the smoking ban. He doesn't think adding more casinos will turn that around.

"The projections that have been made (in this legislation) indicate that the revenues for the state of Illinois would about double. ... That means that almost every person gambling in the state of Indiana is going to have to come over to the state of Illinois (and gamble here). With the smoking ban, we don't believe that is going to happen," said Swoik.

Traditional gambling opponents, Illinois Church Action on Alcohol and Addiction Problems, are also lining up against Lang's latest additions. Anita Bedell of the organization said Illinois' recent history shows it is not ready for another gambling expansion.

"It's already taken a year and a half (to get video poker up and running). The Gaming Board is understaffed. They don't have trained staff," Bedell said. "If you want to rush the process, then you have the possibility of having organized crime and problems with the process in Illinois."

Bedell's group has long warned lawmakers against relying too heavily on gambling dollars to get out of Illinois' budget deficit. She said the expansion could put too many casinos in a state that already has too much gambling.

Lang is cautiously confident in his additions to the gambling expansion. He said he's written plenty of proposals during his time at the Statehouse and said he believes he knows what will pass.

His plan will get its first test Thursday, as a vote is expected before the end of the day.

[Illinois Statehouse News; By BENJAMIN YOUNT]

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