Illinois Gambling Expansion Hearing Held in Chicago

Illinois Gambling Expansion Hearing Held in Chicago

The State of Illinois is seriously considering the possibility of expanding its gambling industry in order to secure more revenue streams to help boost its ailing finances. Two hearings were subsequently scheduled in which stakeholders could discuss a range of expansion options, including Senate Bill 7, and lay out a vision for the state’s gambling industry, with the first held on August 22 in Chicago. It was Democratic Rep. Bob Rita (photo) who introduced the piece of legislation back in 2017, and as he recently stated:

“The gaming landscape has changed significantly since I took on this issue five years ago, and I want to use these hearings to understand how those changes present new opportunities for us to put together the right package as we look to meet budget needs and provide a spark for our economy.”

Troubled Economy

The Prairie State opened its first casino more than a quarter of a century ago, and has since expanded to include ten venues that generated a combined $1.41 billion in revenue last year, resulting in $475.5 million in taxes for the state. However, year-on-year business has contracted over the past five years, with Bob Rita one of the lawmakers championing the push to inject more growth into the industry. One of the major factors contributing to its decline has been competition from neighboring states, with lawmakers asserting that Illinois residents spent roughly $1.5 billion in 2017 at casinos based in nearby states.

This has obviously provided further motivation for Illinois to expand its own gambling market, with proposals made including allowing the building of six new casinos in Illinois, and permitting slots and table games to be offered at its three racetracks. Further recommendations have been made to allow more video gaming terminals (VGTs) at existing venues, as well as at bars, restaurants, and even at its two main airports, O’Hare and Midway. The legalization of online gambling and sports betting is also included in the state’s expansion plan.

House and Senate Committees Hearing

Last week, a joint hearing was held involving the House and Senate committees, with the main subject discussed during the three-hour long debate being video gaming machines. One of the stakeholders speaking out in favor of an expansion was Mark Bennett, president and general manager of Jumer’s Casino, who said he was receptive to allowing VGTs to be allowed at racetracks, although his preference was just on “live racing days.” He further stated a wish to see the $2 casino admission tax scrapped, as well as the expansion of other types of gambling instate.

Amongst the anti-expansion opponents also present who spoke out against further gambling options was Tom Swoik, Executive Director of the Illinois Casino Gaming Association, who stated “cannibalization and saturation are not abstract talking points.” He further pointed out that a VGT expansion would contribute a mere $12 million each year in extra state taxes, a sum he deemed to be just a drop in the ocean.

Meanwhile, other concerned groups expressed their worries that such an expansion could come at a high social cost, including an increase in crime and gambling addiction, especially among the poorer and more vulnerable members of society.

Springfield Hearing Next

The purpose of the two hearings is to bring the various stakeholders together, establish common ground, and ultimately find a way to structure a new expanded gambling market that satisfies the interests of lawmakers and stakeholders in Illinois. The next meeting jointly held by the Gaming Committee and Revenue and Finance Subcommittee will subsequently take place in Springfield on October 3, with its main topic of discussion being the legalization of sports betting, daily fantasy sports, and online gaming in Illinois.