Lang Unveils Gaming Package to Boost State Tax Revenues $2.3 to $3.5 Billion This Year

Package Adds Gaming Positions to Riverboats, Slots to Race Tracks; Casinos for Chicago, South Suburbs, Waukegan, O'Hare Corridor

(Springfield)--State Representative Lou Lang (D-Skokie) today unveiled a comprehensive package of gaming legislation that aims to expand state gaming operations, boosting state tax revenues $2.3 billion to $3.5 billion this year.

Lang, Chairman of the House Select Committee on Gaming, today proposed increasing gaming positions at existing riverboats, adding slot machines at horse racing tracks, authorizing a riverboat or land-based casino license for the City of Chicago. The bill also adds riverboat licenses for a boat in Chicago's south suburbs, one in Lake County, and one in the O'Hare Corridor to substitute for the dormant 10th license.

Lang estimates the complete package would generate between $2.0 billion to $3.2 billion recurring annually.

"The sluggishness of the state's economy and growing health care costs and pension obligations continue to plague the state budget," said Lang. "As a result, Illinois must continue to replace lost revenues--and this gaming package will generate $2.3 and $3.5 billion in new money this year alone."

Key highlights of Lang's legislation do the following:

Authorizes 4 new casino/riverboat licenses:
- City of Chicago - the license must be awarded in a competitive bidding process, but the City Council may make recommendations to the Gaming Board regarding the location, proposal for ownership, licensee, and any other considerations. This license may operate on Lake Michigan;
- South Suburbs - this license must be in one of the following townships: Bloom, Thornton, Rich, Orland, Calumet, Worth, Palos, Bremen, or Lemont;
- Waukegan - this license must be awarded to Waukegan, and may operate on Lake Michigan; and
- O'Hare - this license must be located in a municipality of which any portion is located within 10 miles of O'Hare Airport.
Authorizes Casinos/Riverboats to use up to 2,000 gaming positions; City of Chicago gets up to 4,000 positions. Casinos/riverboats (other than the one located in Chicago) may construct temporary facilities to operate the new positions up to 12 months in order to complete a permanent facility. Casinos/riverboats may use or lose the 2,000 gaming positions. Unused positions become the property of the Gaming Board. The Board is authorized to establish a competitive bidding process to get the unused positions back in service. Only those casinos/riverboats that are using their aming positions may bid on the available unused positions. The Chicago casino/riverboat may not bid to receive more positions than its 4,000 authorized.
Imposes a one-time $130 million assessment on currently licensed riverboats for the additional gaming positions. 9 riverboats x 800 new positions = 7,200 positions. 7,200 positions = $18,056 per position.
Electronic gaming license eligibility requirements:
- Obtain an electronic gaming license from the Gaming Board;
- Hold an organization license under the Horse Racing Act;
- Hold an inter-track wagering license;
- Pay $50,000 for each position ($25,000 each in the case of Fairmount and Balmoral racetracks) for a total of $170 million;
- Apply for at least the same number of racing days as 2006; and
- Meet all other requirements that apply to casino/riverboat owners.

Authorizes 3,800 electronic gaming positions to Illinois racetracks. The electronic gaming positions are allocated in the following manner:

1.	Arlington Park	1,150
2.	Hawthorne/National Jockey Club	1,000
3.	Maywood	850
4.	Balmoral	300
5.	Fairmount Park	500

More Information:

House Bill 480 Fact Sheet