The Tuesday reelection of Chicago Mayor Rahm Emanuel revived the discussions over the potential expansion of the gambling industry on the territory of Illinois.
The state is currently facing some serious financial issues, as Gov. Bruce Rauner and his administration need to figure out how the $6-billion budget gap could be closed as soon as possible. Gaming experts suggested that the expansion of the Illinois gambling industry might result in an annual tax revenue of more than $400 million, not to mention that the state would receive over $100 million in fees paid by the new venues after their first year of operation.
Rep. Bob Rita (D-Blue Island) pointed out that both Chicago and Illinois in general need to cope with their financial problems. According to him the timing is right for a casino expansion bill to be reviewed and approved by the Legislature.
Back in 2013, the state House and Senate voted in favor of a similar legislation. However, all efforts fell apart, due to the fact that former Gov. Pat Quinn did not back the bill.
Rep. Rita submitted two different casino expansion plans in March. The first suggested the launch of one new casino in Chicago. Under the second plan, gambling venues would be established in the southern part of Chicago, Danville, Rockford, Lake County. In addition, the installation of slot machines would be permitted at race tracks.
It was estimated that annually about $445 million would be generated in taxes, if the first plan is approved by legislators. If the latter plan gets the green light, tax revenue would amount to a bit more than $450 million.
Dan Long, Executive Director of the Commission on Government Forecasting and Accountability, commented that in general, the casino expansion would not result in a substantial increase in revenue.
Prior to being reelected, Mayor Emanuel promised that he would use casino proceeds in order to cope with the constantly increasing budget deficit.
Tom Swoik, Executive Director of the state Casino Gaming Association, said he does not believe the gambling expansion would provide any substantial increase in revenue, as the market is already saturated. Mr. Swoik pointed to the rapid increase of the video gambling in the southern part of the state. Yet, he suggested that Mayor Emanuel’s reelection would probably mark the beginning of new discussions on the matter.
