Corruption Is the Concern
Why do Illinois' Democratic Governor, most leading Illinois Republicans, and the Chicago Crime Commission all oppose more slot machine and casino expansion?
Explaining his veto today (8/28) of a bill that would have increased Illinois casinos from 10 to 15 and allowed more slot machines at existing casinos, Governor Pat Quinn said, "The bill ... was woefully deficient when it came to protecting integrity and honesty and regulation of gambling in our state."
NB: Governor Quinn does not oppose more casinos. He opposes the recklessly weakened regulatory structure proposed by a legislature become captive of casino interests.
More Lessons from Illinois: Falling Revenues and Endless Proliferation
- From peak year FY05 to FY11, Illinois state tax revenues from 10 casinos dropped from $699 to $324 million.
- From peak year FY07 to FY11, gross revenues at these casinos dropped from $1.96 to $1.35 billion.
- From FY00 to FY11, gambler visits to Illinois casinos dropped from 19.3 to 13.3 million.
Why did this happen? According to the Illinois Commission on Government Forecasting and Accountability, a smoking ban imposed in 2007 and market saturation from constant casino expansion in adjacent states.
How did this impact the state budget? Illinois' state finances are easily worst in the nation, with an FY2012 budget deficit of $5 billion plus $8.3 billion in unpaid bills, according to The Institute for Illinois Fiscal Sustainability.
What is Illinois state government doing in response? In 2009, up to 65,000 slot machines were legalized at bars and truck stops throughout the state, expected to come online in 2013-14. And even that is not enough. The just-vetoed gambling expansion bill would have added five new casinos and allowed 16,000 more slot machines at existing casinos.
Three Lessons for New Hampshire
- Before legalization, casino backers always promise strict regulation. Once legalized, state government becomes corrupted by casino interests and regulation grows weak.
- Before legalization, casino backers promise big revenues to fix state budget problems. Following legalization, neighbor states rush to expand, and resulting market saturation slashes state casino tax revenue.
- Before legalization, casino backers promise "limited" gambling. Following legalization, declining tax revenue induces legislators to continuously proliferate casinos and slot machines throughout the state.
Don't Want Casino Corruption and Statewide Proliferation?
Simple. Ask every candidate asking for your vote to vote against even one casino.
Best Regards,
Jim Rubens
Chair, GSCAEG
