Wednesday, May 26, 1999 | 11:59 a.m.
It would be a major change in Illinois gambling, the biggest since riverboat casinos were legalized. And the legislation to make it possible is on Gov. George Ryan's desk.
"I'll probably sign it, but I want to look at it and make sure everything's OK," Ryan said Tuesday.
"Hopefully, this will help keep Illinois dollars in Illinois. That's really what it's all about," he said.
But gambling opponents say the legislation is really about transforming gambling.
"It will turn those riverboats into land-based casinos. They will be huge complexes," said Anita Bedell, executive director of Illinois Church Action on Alcohol Problems, an anti-gambling group. "This ups the ante and the competition between the states."
Riverboat casinos were seen as economic aid for depressed river towns when they were approved nine years ago. Promoters described tourists visiting to have dinner and maybe play a little blackjack as they cruised the river on an old-fashioned paddle-wheeler.
But the boats succeeded beyond all expectations, yielding huge profits and adding to the problems of the fading racing business. Powerful interests began pushing to turn the riverboats into full-time casinos and bring them closer to the Chicago market.
Legislation approved 31-27 Tuesday by the state Senate would do that.
Riverboats could stay docked and let customers come and go as they please. And an unused casino license could be moved to Cook County, with the suburb of Rosemont the most likely spot. That would put a casino on the border of Chicago and next to O'Hare International Airport, rather than miles away in a neighboring county or across the Indiana border.
Senators rejected the same legislation Monday on a 29-29 vote.
The difference proved to be a deal between Senate President James "Pate" Philip, R-Wood Dale, and Minority Leader Emil Jones Jr.
Jones, D-Chicago, had pushed for a casino in Chicago's poor south suburbs, arguing they need economic help more than Rosemont.
But he and Philip agreed - with Ryan's approval - to devote $30 million of the governor's "Illinois FIRST" public works program over the next five years to promote economic development in poor communities. The Senate also approved a resolution, 48-7, seeking a study on the economic impact of riverboat gambling.
Ryan said the money had been on the table since the weekend and he simply told Jones it was still available. "I informed him it had nothing to do with the gaming bill," the governor said.
Backers said the legislation would help Illinois' economy by creating jobs, bringing in more gambling tax revenues and keeping the state's horse breeding and racing businesses alive.
Just how much the state will benefit directly is far from certain.
An analysis by the Legislature's Economic and Fiscal Commission concluded the bill would create nearly $59 million in new revenue for education, but declines in other kinds of taxes would mean an overall $14 million loss for the state treasury. But a House Democratic analysis predicted a $30 million net gain.
The racing industry would see about $68 million in benefits, roughly $38 million in tax breaks and aid and $30 million from a share of casino profits.
Owners of the transferred casino license would have one year to sell at least 16 percent ownership to minorities and 4 percent to women.
Fifteen percent of the revenues from a Cook County casino would go to the state's ailing horse-racing industry, helping make up the losses suffered after riverboat casinos were legalized in 1990. Track owners would get breaks on their betting taxes and property taxes.
The Rev. Tom Grey, head of the National Coalition Against Gambling Expansion, predicted a legal challenge to the bill's minority set-aside. He also chastised Senate Democrats for making a deal with Philip.
"They got scraps off the table, and Dick Duchossois and Don Stephens got the main course," Grey said.
Duchossois runs the now-closed Arlington International Racecourse and has spent years - and millions of dollars in campaign contributions - lobbying for legislation to help the racing business.
Stephens is the mayor of Rosemont. Working closely with legislative allies and neighboring towns, he pushed to open Cook County to riverboat gambling, hoping to bring the casino to Rosemont.
"It's good news for the whole state," he said after the Senate vote. "It's going to help tourism, and that's where we were coming from."
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The bill is SB1017.
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