Ward Room: Are Casinos "City Ruiners"?

This issue has come up in the city from time to time. It's often viewed as a way to gain more revenue for the city especially for the public schools. This opinion from Ward Room argues that a casino could be a "city ruiner" and cites an urbanist who's fighting a casino in the other second city: Toronto, Ontario, Canada.

To be sure, the only reason I would support a casino is if it went to a struggling city neighborhood so they could reap any potential benefits although current proposals I've seen seeks a casino in downtown Chicago. Certainly it's understandable to keep tax dollars in the city as residents who do visit the casinos are likely to go to Indiana or nearby cities such as Aurora or Joliet.

All the same I'm curious how people would view a Chicago casino. Do you think a casino in this city could be a "ruiner"?

Aldermen back Emanuel push for Chicago casino

The Chicago City Council met yesterday and here's one of the measures that had passed:

The City Council today backed Mayor Rahm Emanuel's push to get Gov. Pat Quinn to sign off on a major gambling expansion that would bring a casino to Chicago.

One after another stood up to say a casino would bring new jobs and generate $20 million a month or so that Emanuel has pledged to use to rebuild the city.

“Governor, sign this bill, it’s a no brainer,” said Ald. Richard Mell, 33rd, who has long advocated a casino for the city.

Emanuel has been pushing Quinn to sign a major gambling expansion bill. The governor has expressed deep reservations, saying it's "top heavy" and could weaken gambling oversight. Lawmakers have yet to send him the bill.

“This is not a tax increase,” said Ald. Ray Suarez, 31st. “Give Chicago a chance to have a casino. Give Chicago a chance to use that money on infrastructure, which is badly needed.”

The leaders of the city's Black and Latino caucuses - Howard Brookins (21st) and Daniel Solis (25th) - have supported this resolution in favor of bringing a casino to Chicago.

Black, Latino aldermen press Quinn to sign casino bill

Chicago Breaking News (of the Chicago Tribune) posted this news story

Latino and African American aldermen today prodded Gov. Pat Quinn to sign legislation that would allow Chicago to get a casino.


The City Council members said a casino would help create badly needed jobs for the city’s minorities because it would provide immediate construction work and eventual gambling jobs. And it would create other jobs over the long haul, they said, because Emanuel has promised to pump the casino’s profits into upgrading the city’s water mains, CTA lines, schools and roads.

More at...  Black, Latino aldermen press Quinn to sign casino bill

While the SEIU greatly exaggerated Alderman Sawyer's response to a questionaire in the many many pieces of propaganda, how strongly is he in support of this? How about our state representatives and senator?

And how much are YOU in support of gambling in Chicago?

Look for an opinion piece on this soon.

SEIU cites our blog post as a source

The latest SEIU mailing, which just appeared in my box, cites the post with Worlee's questionaire (Feb. 16) as the source for Rod Sawyer's stance on gambling. (Progress Illinois also cited that questionnaire on Feb 18. Sidenote: they correctly predicted the top 2 contenders for the 6th ward race before the election.)

The actual quote is this:

I support video gambling as a means to generate revenue. Of course it needs to be regulated and have tight controls. We need to recapture some of the revenue we are losing to the Indiana casinos.

 .Clearly the SEIU's mailings are an exaggeration of Sawyer's support of gambling , and not a central issue of his campaign. And if you see the casino buses at Tuley Park, Cole Park, and other locations, Sawyer has a reasonable argument.  And i would think that even people who are strongly against video gambling are sick of these multiple mailings.

However, here's what Worlee posted on Concerned Citizens of Chatham based on a press release from the Sawyer Campaign:
,

“The only statement I have ever made concerning video gaming, is that the city council should debate the issue, like it should any revenue generating idea that is introduced. The law as it was written has been invalidated by the Illinois Supreme Court, and the Senate President has moved to exclude it from the new revenue package. There is no video gaming in Chicago. I have no idea what they are talking about."

Perhaps he forgot the questionaire (as many have been sent out and answered), but that's what SEIU is using as their justification.  From what I read, he supports it...but certainly desires some debate into it so that it does not proliferate everywhere.

As for the tax issue....we'll get back to you on the "truthiness" of that allegation.

Are the casino buses still running?

Just wondering..are the casino buses still running? Are they taking less, or more, of our seniors out of our community, and along with it, our dollars?

I have seen these buses stop at 79th & King, 87th & King, and even 2 of them (at the same time) in front of Tuley Park

Even if we had a Chicago casinos...that's money that would leave our families, and go into the hands of people not interested in the impact for our neighborhoods (such as possible foreclosures & bankruptcies).

Please let us know...

Daley: If gambling is bad, why is it all over Mississippi and Illinois?

Clout St:

While opponents of a plan to legalize video gambling at bars and restaurants throughout Illinois warn of the social ills, Mayor Richard Daley today suggested a reality check.

"Everybody thinks gambling is bad, let's be realistic. Everybody does. But why is it in Mississippi? Why is it all over? It's even in Illinois. If it's that bad, then why have we allowed it to happen?" asked Daley, who has long wanted a land-based casino for Chicago.

Opponents of the proposal, which is being floated as a way to pay for a statewide construction program, have said it would result in a massive gambling expansion that will add to the state's social problems. Cook County Sheriff Tom Dart called the prospect "horrible."

When directly asked if he agrees with legalization, Daley did not take a position.

"They don't ask me for my permission to do anything in Springfield," he said.

Gaming is a convenient answer. It's easier to say that the state might as well profit from those people who are willing to gamble, but should anything provided by government be funded by those who choose to gamble?

Illinois Smoking Ban Disaster: Revenue's Drop By 20%

Tribune:

The struggling economy has dealt a bad hand to the nation's usually robust gambling business, a downturn made even worse in Illinois, where the state's nearly year-old smoking ban has proved unhealthy to casinos.

Among those paying the steepest prices are local governments, charities and their clients, who have come to rely on gambling tax receipts.

The big gambling states— Nevada, New Jersey and Mississippi—are off 5 percent to 7 percent in casino revenue. But the picture is worst in Illinois, where casino revenue is down 20.3 percent this year.

Gambling officials estimate that the state will get between $150 million and $160 million less in taxes, most of it earmarked for education. Statewide, the eight communities with casinos will see $20 million to $25 million less than they took in last year, officials estimate.

Smoking bans seems like the chic crusade these days. Personally instead of finding every excuses in the world to ban smoking where one can why not just tax cigarettes. I'm against taxes personally, but if the goal is to discourage smoking then one was not to go is outright banning the activity.

Article via Newsalert!

State revenue from gambling drops

AP:

A new report from the legislature's Commission on Government Forecasting and Accountability shows Illinois' riverboat casino tax revenue slumped from $685 million to $564 million during the budget year that ended June 30.

Both the commission and the Illinois Casino Gaming Association say they expect the trend to continue in the coming months.

Some lawmakers, including Democratic Representative Lou Lang of Skokie, say the results should prompt a second look at the ban on smoking in casinos.

10th casino license bidding process starts Friday

From Crain's:

Applications to purchase Illinois’ long-dormant 10th casino license will be available beginning Friday with a goal of choosing a buyer for the license by the end of the year, the state Gaming Board said Wednesday.

The board intends to select three finalists for the license in late September or early October and then spend the remainder of the fall interviewing the candidates and evaluating their proposals.

Investment bank Credit Suisse will manage the sale process and offer advice to the board about the applicants. Credit Suisse’ casino industry bankers predicted a robust competition for the license, despite the dismal financial condition of the U.S. casino industry.

The 10th license, which has been inactive for a decade, is currently the only option for additional gambling in the state after legislation authorizing an ambitious gambling expansion failed in the state General Assembly this spring.

Gambling debate in Springfield

State Senators Bill Brady and Lou Lang talking about gambling expansion this morning on Channel 2's Eye on Chicago. Have a watch.

Gaming Expansion Has Huge Social Costs

Let's piggy back off of Mr. Paulus' comments for a second. Check out this story from CBS2.

An estimated $1 billion in new state government revenue is the payoff for flip-flops by legislative leaders and a governor who long claimed to oppose gambling expansion.

"In the spirit of compromise, I've accepted gaming, that I'm not for and don't want," said Gov. Rod Blagojevich.

Unlike a general tax increase, most of this new money comes from just 10 percent of Illinois residents. That small group loses about $1.6 billion of the total $2 billion lost at casinos here each year.

Wagner is demanding a voter referendum on gambling expansion.

"Individuals within the city of Chicago should be allowed to have a voice," Wagner said.

A referendum in Arlington Heights was approved by a mere 26 votes to allow slot machines at Arlington Park. But that was back in the 1990s. The mayor resents not being consulted by state officials who want to put 1,100 slots in at the park now.

"We do not appreciate or welcome the pre-emption of home rule," said Arlington Heights Mayor Arlene Mulder. "[It] could bring more local addiction to gambling. It can ruin lives."

Gamblers now lose $2 billion a year at Illinois casinos. Losses could jump to close to $5 billion a year with this expansion. The government plans to skim a huge chunk of that loss for new roads, bridges, schools and mass transit.

A University of Illinois economist estimated those ruined lives cost society $3 for each $1 of new revenue from casinos. Because the Chicago area will bear almost all that burden, downstate is an especially big winner in this deal. Without having to put any skin in the game, the will get an equal share of new gambling dollars to spend on roads, bridges, schools and mass transit.

Of course this is nestled withing the political maneuvering and the possible revenue benefits, but if we look at the revenue benefits it makes sense to look at all the costs yes. The costs to those who are going to these casinos. Ultimately I think the decision whether or not to go to a casino is yours and yours alone and unfortunately a lot of people are going to be addicted. Even if that's the case, I would be under no illusion that gambling is the solution to the revenue problems of government.

Casinos -- good for the 6th ward?

Levois, the Master BlogMaster and mastermind of http://www.thesixthward.blogspot.com/ , recently wrote in a sister blog, It's My Mind, about his thoughts on gambling, and whether it would be good or not. You can check that here.

http://itismymind.blogspot.com/2007/12/madigan-proposes-major-gambling.html

i have a very different opinion, which i think has been summed up best by candidate for the 7th District State Senate, Suzanne Elder:

From http://www.suzanneelder.org/Gambling.html

In my neighborhood there are buses that pick up and drop off casino
customers, older customers, customers of color, customers with small, fixed
incomes, customers who don’t think of gambling as an afternoon’s
entertainment but as a chance, a shot at something better. Because I don’t
see these buses roaming the Chicago’s more upscale neighborhoods, it
suggests to me that gambling is more likely to work as a pernicious, highly
regressive tax extracted from those who can least afford it.

i strongly agree, and this definitely has implications for the 6th Ward. i see "luxury" buses (i.e. not a cheap yellow rental bus) on King Drive with stops at 79th & 87th listed on the front window. On Saturdays at 9am, there are two buses ready to pick up crowds of elderly African Americans near Tuley Park.

i have never seen this massive pick up before anywhere in the city! A few small buses here and there (such as off Argyle, with Asian immigrants, and Devon , with elderly Russian & South Asians nearby).

As Sue Elder stated, these casinos aren't simple entertainment that just happens to generate revenue (like the theaters or Navy Pier) -- this is really a deceception that is focused on those with little money who have placed a lot of hope in the casino trip.

Adding to the deception are the buses, with such "tame" names as "Irma J Tours". Does Irma J ever give tours of downtown, or the ethnic neigborhoods? Their website lists a few events -- but when you see them out, it seems like they mainly go to one kind of destination -- the kind that leaves people poorer, emotionally & intellectually as well as financially.

If the casinos didn't make so much money (as opposed to paying it out) from people in the 6th ward and other areas, would they spend so lavishly on such nice transportation and other incentives?

i'm new to the community, and have seen & heard (and tasted) a lot of great things in this community of Chatham, but this is one ting that is a problem.

What do others think?