Expansion could have brought in up to us$ 1 billion a year

Illinois Governor vetoes plan to expand gambling in the state

(US).- Governor Pat Quinn rejected this week a bill to expand gambling in Illinois, that would have allowed four new riverboat casinos and one landbased casino in Chicago, saying the proposal lacked sufficient regulatory oversight.
2012-08-29
Reading time 2:25 min
(US).- Governor Pat Quinn rejected this week a bill to expand gambling in Illinois, that would have allowed four new riverboat casinos and one landbased casino in Chicago, saying the proposal lacked sufficient regulatory oversight.

The move sets the stage for a potential showdown with lawmakers following the November 6 election, when supporters of the bill have vowed to try to override a veto.

With his two immediate predecessors in prison, the Chicago Democrat had said integrity must be a hallmark of the gambling plan, which also proposed establishing four new riverboat casinos and allowing slot machines at racetracks.

The most glaring omission from the bill "is the absence of strict ethical standards and comprehensive regulatory oversight. Illinois should never settle for a gaming bill that includes loopholes for mobsters," Quinn said in a statement announcing the veto.

He urged legislators to work with him on its shortcomings, although the bill's House sponsor said his attempts to meet with Quinn have been rebuffed. Representative Lou Lang predicted there would be enough House votes this fall to override Quinn's veto.

Supporters of the bill estimated the expansion could have brought in up to us$ 1 billion a year, boost tourism and create 100,000 jobs for the state. Chicago Mayor Rahm Emanuel supported the establishment of a city casino. Opponents warned of market saturation and raised concerns about the social costs.

The proposal would have established a city-owned Chicago casino with spots for 4,000 people to gamble at once. It also would have added riverboat casinos in Danville, Park City, Rockford and an undecided location in Chicago's south suburbs. Each riverboat casino would have had 1,600 gambling positions, and allowed Illinois' 10 existing casinos to grow.

Earlier attempts at expanding gambling in Illinois have failed. Lawmakers approved a similar plan last year but did not send the plan to the governor, who had threatened a veto.

Quinn, who isn't opposed to gambling on principle, had said all along that he wanted a bill with stronger ethical protections. That includes barring the gambling industry from making political contributions. "Everybody should be concerned about ethics in our state. We have two governors, my predecessors, both in jail," Quinn said Monday.

On Tuesday, Quinn took aim at the proposed Chicago casino, claiming the bill would have allowed it to play by different rules. He said the Illinois Gaming Board wouldn't have the same regulatory authority over the Chicago outlet as it holds over other casinos in the state and that the city casino would not have to follow the state's procurement code in handing out contracts.

"Such a complete lack of oversight will leave the Chicago casino's numerous procurements vulnerable to organized crime, unsavory influence and potentially overpriced vendors," Quinn wrote.

In earlier responses to the governor's critique, lawmakers offered follow-up legislation to address some of the concerns. However that wouldn't be considered unless the initial law is signed, and Quinn has said he'd rather get all the legislation signed at once.

Lang said he would seek an override in the fall legislative session and dismissed the suggestion that Quinn might be open to discussing differences with the legislation's authors. "The bottom line is he doesn't want to sign a gaming bill," Lang said. "If he had language to propose, he would have proposed it."

Quinn also criticized the legislation for providing too little support for public education. Past gambling expansions have been designed to bring in more revenue for public services such as schools, but the 1991 law that created riverboat casinos was intended to help economically depressed cities.

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