Lawmakers look to save Illinois' gambling industry

[March 18, 2011]  SPRINGFIELD -- Illinois lawmakers are off to the races to save the state's gambling industry.

House Bill 3107 would allow horse racetracks in the Chicago area to have slot machines. A similar bill died last year, and the same sponsor, state Rep. Lou Lang, D-Skokie, is at it again. Lang said the plan would create up to 1,500 jobs and rake in up to $400 million for the state.

"We should not have limits on our gaming operations," Lang said. "We should let them grow like every other business grows, but that has not been the way or the direction the General Assembly has gone."

Lang said the horse racing industry is dying, putting at least 40,000 jobs in peril.

"We can save those jobs in Illinois if we can pass this bill," Lang said.

Money brought in from Illinois horse tracks has been on a steep decline in the past decade. During the past five years, the state's revenue from horse racing decreased by 36.9 percent, bringing in only $74.4 million in 2010, according to the Illinois Racing Board.

Businesses and jockeys are riding away to neighboring states.

"Over the last many years, because states like Louisiana and Delaware have authorized slot machines at their racetracks, we've lost some of our best horse breeders, trainers, and drivers and jockeys, and owners to their states," Lang said. "If we bring them back, jobs would come back with them."

But not everyone supports the bill.

Tom Swoik, executive director of Illinois Casino Gaming Association, said horse tracks would be competing with Illinois riverboat casinos.

Jay Keller, a lobbyist for Penn National Gaming, agreed with Swoik.

"I do not see it being an economical benefit to the casinos in Aurora, Joliet or Alton for that matter," Keller said.

Anita Bedell, executive director for Illinois Church Action on Alcohol and Addiction Problems, said additional electronic gaming would increase gambling addiction.

"It also allows racing on Sundays. The House would allow 'racinos' to be open seven days a week, not only when the horses are racing, but people could gamble all the time," Bedell said.

Lifting the smoking ban in casinos

Casino revenue in Illinois has gone up in smoke since an indoor statewide smoking ban was implemented in 2008. The riverboats are losing customers and have lost up to $400 million, according to the state's Commission on Government Forecasting and Accountability. That translates into a $193 million loss in the state's take from fiscal 2008 to fiscal 2010, according to COGFA.

Penn National Gaming's Keller said gamblers choose to smoke, and some choose to go to Indiana, where they can smoke while they gamble.

House Bill 171, sponsored by state Rep. André Thapedi, D-Chicago, would require casinos to have designated rooms where smoking would be allowed.

"First of all, this bill does not encourage or promote smoking. Those that choose to smoke will smoke," Thapedi said. "Employees cannot be assigned to work in the smoking-optional room. New hires and existing hires must apply to work in the smoking-optional room separately."

But state Rep. Dan Brady, R-Bloomington, said the bill could start "carving exemptions."

"If we're starting it for one, we start it for all -- doing it for casinos, and those who'd like to have a smoking room in my district aren't going to get that," Brady said.

Both bills passed through the House Executive Committee and are on their way to the House floor.

[Illinois Statehouse News; By MARY J. CRISTOBAL]