Casino & Bingo: IL Casinos Page 1
Casinos would get time to adjust to potential ban
Smoking ban especially bad for state economy
by Jackson Citizen Patriot
June 07, 2008
Categories: Voice of the People
CHICAGO — The May 30 editorial in favor of an all-out smoking ban oversimplifies the issue. Some economists have shown that businesses in states with colder climates, such as Michigan, are harder hit by smoking bans than businesses in warmer states, where patio areas can be set aside for smokers even during the colder months.
Casinos are at a particular disadvantage if smoking is banned since they require patrons to be actively placing bets — a feat quite difficult for someone forced to stand 10 feet outside in a foot of snow and 30 mph crosswinds.
The Associated Press in February reported that after the Illinois smoking ban took effect, “The Harrah’s Metropolis Casino reported an approximately 23 percent drop in revenue since December and that it was laying off 30 people.” The Illinois Gaming Board reported that casinos in the state experienced a 17 percent revenue decrease in January compared with January last year.
What will this mean to Michigan? It will push even more tax and business revenue out of a slumping economy into other states where smoking is allowed.
— John Nothdurft, legislative specialist
The Heartland Institute
Smoking ban blamed for casino woes
By LINDA N. WELLER
Smoking ban, economy forces Alton’s casino to cut employees
By Kathleen Haughney, ST. LOUIS POST-DISPATCH
Casino funds up in smoke
JOLIET EXPECTS TO LOSE MONEY WHEN GAMBLERS GAME IN STATES THAT DON’T BAN PUBLIC SMOKING.
December 9, 2007
By BOB OKON Staff writer
JOLIET — The city of Joliet already expects its casino tax revenue to drop by 7.5 percent next year when a smoking ban takes effect. But that forecast could be low if the casino industry’s prediction proves true.
Illinois casinos are predicting a 20 percent decline in revenue strictly because of the smoking ban.
“That’s what happened in Delaware, and that’s what happened in Windsor, Canada,” said Tom Swoik, executive director of the Illinois Casino Gaming Association.
Just what happens in Joliet, of course, won’t be known until the city’s two casinos start operating without cigarette and cigar smoke in the air.
But Joliet’s two casinos do tend to lose business when gamblers have a reason to switch to Indiana. And the smoking ban that goes into effect in January could be one such reason.
Possible budget pinch
City officials are showing signs that they expect their budget to be pinched by both a smoking ban next year and the prospect of more casino competition in the future.
Last week, the city council cut back a four-year plan for managers’ pay raises to one year, noting in part the uncertainty of future casino revenues.
Councilman Warren Dorris did not mention the smoking ban. But he did say that more casinos in Illinois could dilute the amount of money Joliet has available to pay city employees in the future. State lawmakers are looking at a plan that could let a casino into Chicago and make room for as many as three additional casinos in Illinois.
Cuts in use of gambling money
The proposed city budget for 2008 forecasts a $2.8 million decline in casino revenue to $34.5 million.
That’s a small part of a $268 million budget. But the city is accustomed to seeing casino revenues rise.
The city budget freezes the amount of gambling revenue that would be shared with school districts and other taxing bodies and nonprofit agencies.
Schools would get $1.28 million like they did last year. But there are cuts in the use of gambling money for capital projects and one-time expenses, said Ken Mihelich, director of management and budget.
Mihelich said the budget does not calculate any declines in revenue that could come if Joliet’s two casinos have to compete with more casinos in Illinois.
“We didn’t do it at this point because there wasn’t anything that would indicate that it would affect us in 2008,” he said.
If the state does approve more casinos, they aren’t likely to open in 2008, he said, and the budget can be adjusted if they do.
Mihelich said city officials believe their prediction of a 7.5 percent reduction in casino revenues is “conservative.”
There is a school of thought that casinos won’t lose business because they’ll attract more people who don’t smoke and who avoid places where smoking is allowed.
The casinos claim that they’ve accommodated nonsmokers with more sophisticated ventilation systems.
Right now, they’re more worried about losing gamblers who smoke. Not all gamblers smoke. But, Swoik said, “There seems to be a high correlation.”
Bob Okon can be reached at (815) 729-6046 or bokon@scn1.com
Smoke ban may mean less cash to casinos
$1.4 million drop in tax revenue seen for aurora
November 23, 2007
BY DAN CAMPANA Staff Writer
AURORA — Casino-goers who take smoke breaks between blackjack hands or rolls of the dice could mean fewer tax dollars for the city next year.
City Finance Director Brian Caputo said he’s reduced gaming tax revenue projections by $1.4 million in 2008 to account for the statewide smoking ban’s debut on Jan. 1.
The hit would be felt in the wager portion of the tax, which the city expects to bring in $14.5 million, but not the admission tax.
“We think they’ll have the same number of people coming in,” Caputo explained, “But just not at the tables as long.”
The reason for that is simple. Gamers, including smokers, allot a set number of hours to spend at the casino. Those who take smoke breaks don’t add additional time to their casino visit, meaning they spend less time on wagering, Caputo said.
Money received through the gaming tax on Hollywood Casino supports aldermen’s ward funds for street projects, a variety of social programs and to pay down debt. Gaming tax projections were compiled “months ago,” Caputo said, before state legislators passed and Gov. Rod Blagojevich signed the smoking ban.
Statewide, the local share of gaming tax is forecasted to dip by as much as $23 million, or 20 percent, from the $112 million doled out in 2006, according to Illinois Casino Gaming Association Director Tom Swoik.
“We’re going to have to see the impact it has,” he said. “We’re not expecting an immediate spring-back.”
It’s uncertain if the smoke ban will have an effect on Kane County’s Riverboat Grant program and other county projects that get their money from Elgin’s Grand Victoria Casino. Based on a 10-year-old agreement, the Grand Victoria contributes 7.5 percent of its net operating income to the county which in turn provides grants to programs and projects with focuses on education, economic development or the environment.
The county grants, which are for capital purposes, totaled a little more than $1 million when awarded in September.
Hesed House, Hope Wall School and SciTech Hands-On Museum were among Aurora-area grant recipients this year.
County Board Chairman Karen McConnaughay said the county has received about $7.6 million from Grand Victoria this year and, based on projections from July, expects around $9 million in 2008.
McConnaughay hasn’t heard from casino officials about the smoking ban’s possible impact, but suggests the county might break even because a state program that diverted some gaming tax money to support horse racing has come to an end after two years. The return of those funds explains the projected increase for 2008, she said.
As the ban approaches reality, the Illinois Casino Gaming Association continues its push for an amendment that would give casinos an exemption to allow smoking on gaming floors for five years or until the nearest neighboring state to a particular casino enacts a similar ban.
On its Web site, Hollywood Casino touts 18-foot ceilings and “the freshest air around.” Earlier this year, casino officials, who could not be reached for comment, discussed plans to build outdoor shelters for smokers, although no specifics were mentioned.
Swoik complimented Hollywood Casino’s work to accommodate smokers and non-smokers alike.
“It’s not like some of the smaller casinos that are smoke-filled rooms,” he said.
Swoik also thinks attendance at Illinois casinos could take a hit, especially with expectations that casinos in Wisconsin and Indiana will try to lure gamers to cross the border.
“They will use this (Illinois’ smoking ban) in their promotions,” Swoik suggested.
Will proposed Riverboat Gambling Bill HB 0025 be replaced by HB 2035?
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It appears to me that our IL legislators are playing games again.? When I checked into HB 0025 and each of the activity references from 6-01-07 with Gaming links, I found the Notice of Hearing on October 17th for HB 0035.? That’s the bill (HB 2035) with references to extending smoking in casinos and verbiage to amend Smoke Free Illinois.? Our elected officials will be attempting to incorporate gambling profits with transportation funding.? (See below)
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I admit, I hadn’t looked up the amendment language on HB 0025 before…..since, I think, it’s the third bill this year that has been proposed to exempt the casinos, including a Chinese puzzle of multiple proposed amendments.?
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This is still only an upcoming committee hearing for HB 2035, but seems our politicians haven’t chosen to share its existence with the public yet.? I could be wrong, but why haven’t our Illinois House representatives extended the “action deadline” on HB 0025 out past the hearing date, if they weren’t trying to camouflage it?
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This entire fast shuffle in our IL Assembly is nauseating!
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Garnet Dawn
Illinois Smokers Rights – http://www.illinoissmokersrights.com
The Smoker’s Club, Inc. – Midwest Regional Director
The United Pro Choice Smokers Rights Newsletter – http://www.smokersclubinc.com
mailto:garnetdawn@comcast.net – Respect Freedom of Choice!
95th General Assembly???????? HB 2035
Gaming
Sept. 21, 2007
Good luck on that.
Unless sheer hypocrisy and pure greed have totally overtaken the Illinois Legislature, the exemption idea is going nowhere. Why would a lawmaker who voted for the smoking ban a couple of months ago agree to weaken the law?
The argument being advanced by the casinos and like-minded businesses is that the ban will cut sharply into their revenue, particularly in border areas. But that argument, made by a good many legislators during the recent debate, was tossed out by the majority.
For the majority, it’s not about business and making money. . It’s about your health. The very first words in the Smoke-Free Illinois Act are, `An Act concerning public health…’ For the health-minded majority, exempting casinos would in effect declare that health of casino workers is of less moment than that of workers in other types of businesses. Are they to be afforded fewer health protections under the law than it affords other workers?
I’m guessing members of the majority aren’t hypocritical enough to back off.
That leaves greed.
The casinos are playing on that. They’ve come up with some numbers from somewhere — the smoking ban will cost them $144 million a year, they say. Oh, oh. That hits the state, too.
The tax structure on casinos is somewhat complex (natch), but in essence the boats pay the state between 15 and 70 percent of the take, with the boats taking in the most paying the highest rates. In practical terms, to use August as an example , the boats took in $172.7 million; the state got $69.1 mil of it and the communities in which the boats operate got $10.1 mil — an overall tax rate of 45 percent.
Let’s see — 45 percent of $144 million; that would be about $64 million. That’s fairly serious money for the wastrels in Springfield to give up. Maybe some of the formerly health-minded lawmakers will suddenly develop new respect for the libertarian and business arguments they rejected earlier this year.
The casinos aren’t alone in the fight. The proposed new exemptions, with various conditions attached, would also cover private clubs, bars that don’t sell much food and entertainment venues that don’t admit the under-18 crowd. It’s kind of a rematch for a coalition that lost round 1 and is hoping for at least a partial recovery in round 2.
Be interesting to see if any of the lawmakers switch sides. (How they voted on Smoke-Free Illinois)
Personally, I thought the libertarian argument should have carried more weight than it did. Smokers have been in retreat for 30 years or so — there’s been a sea change in social attitudes about when and where it’s OK to light up, and the change is widely accepted by a lot of smokers. No problem.
But the smoke-free laws so widely popular these day are getting increasingly coercive and intrusive. The logic employed is kind of scary, too, It could easily be — and probably will be — used to justify attempts at yet more restrictions.
The do-gooders are riding high.
John Beydler is news editor at Quad-Cities Online.
2007-09-19
STEPHANIE SIEVERS, sng2@springnet1.com , 217-524-5797
SPRINGFIELD — The Illinois Senate is betting three new casinos, including a land-based one in Chicago, will help fund the state’s first capital construction program in more than five years.
On a bipartisan vote of 37-15, the Senate Tuesday approved a gambling expansion bill that also would allow existing riverboat casinos to lease additional gaming positions. The infusion of new state revenue would be used to fund everything from school construction and road projects to temporarily bailing out Chicago’s mass transit system.
But the measure still has to make it through the House, where there has been some reluctance by legislative leaders on both sides of the aisle to support a major gaming expansion.
Gov. Rod Blagojevich, who has been at odds with House Speaker Michael Madigan for much of this year, commended senators for supporting an imperfect means for the greater good and hopes House members will do the same.
Sen. Mike Jacobs, D-East Moline, was among those who voted yes, saying it will bring needed capital projects to his area.
“I wish we’d had a different way to fund it but we were left with few options. The governor said no to a sales tax, the governor said no to an income tax and finally he said yes to a casino tax,” he said.
But Sen. Gary Dahl, R-Peru, voted no and said while a capital construction program is important, lawmakers should have found a better way to pay for it.
“Gambling is not a revenue stream that you’re sure of,” he said. “Maybe it’s there, maybe it’s not. You can’t put all your eggs in one basket and that’s what we’re doing.”
Under the gambling bill, the Illinois Gaming Board would determine where the other two new boats would be located.
The bill’s sponsor yanked an amendment that would have exempted the Casino Rock Island and boats in East St. Louis and Alton from the state’s new smoking ban. The ban will prohibit smoking in public establishments such as restaurants, bars and casinos, but some lawmakers had sought to exempt boats in border communities. But Sen. Rickey Hendon, D-Chicago, pulled the exemption, saying he couldn’t get enough votes for the overall gaming bill with it attached.
The $13 billion state share of the capital plan would enable the state to capture another nearly $12 billion in federal funds. Nearly $2 billion would be earmarked for school construction spending over the next three years, with $149 million carved out immediately to pay the 24 school districts that were promised state funding five years ago.
The proposed capital bill also includes construction money for higher education. About $550 million would be earmarked for state universities and $175 million for community colleges.
Beside funneling additional money to Chicago and suburban mass transit systems, lawmakers also want to set aside $30 million for downstate transit needs.
Association wants smoke ban to include gaming sites
By DANA HEUPEL
STATE CAPITOL BUREAU
September 15, 2007
A study commissioned by the American Lung Association of Illinois found unhealthy air levels in an East St. Louis casino, even though relatively few of the patrons were smoking, organization representatives said Friday.
The results indicate that casinos should not be exempted from a statewide smoking ban set to take effect Jan. 1, Kathy Drea, the Lung Association’s director of public policy, said during a Statehouse news conference.
Lung Association volunteers, including Drea, assisted in the study, which was conducted by the Roswell Park Cancer Institute of Buffalo, N.Y. They and researchers secretly measured air quality during two three-hour visits to the Casino Queen in August, Drea said.
The study found that the average level of fine-particle indoor air pollution on the gaming floor was 16 times higher than outdoors, exposing employees and patrons to levels that the U.S. Environmental Protection Agency would define as “very unhealthy,” Drea said.
Particles of that size are released in significant amounts from burning cigarettes, the Lung Association said in a news release.
About 61/2 percent of those in the casino were smoking, according to the study.
“There were very few smokers, but their smoking significantly impacted the air quality in the casino,” Drea said. She questioned industry reports that up to 70 percent of casino patrons are smokers.
The gaming industry and various lawmakers are trying to persuade the legislature to exempt casinos from the law that will ban smoking in all public places. They say the Illinois ban would give a competitive advantage to casinos in nearby states.Drea said the Lung Association believes it has enough support in the Senate to defeat such an exemption.
“Our main concern is that they will roll the casino exemption into the capital bill,” Drea said. That would mean to vote against the smoking exemption, lawmakers also would have to vote against construction projects in their legislative districts.
Tom Swoik, executive director of the Illinois Casino Gaming Association, said he didn’t know enough about the study to question its findings. He suggested, however, that perhaps a new ventilation system in the newly reopened casino was not yet fully functioning or that some of the particulate matter might have been dust from recent construction in the area.
He said the Casino Queen and the Casino Rock Island both conducted surveys of patrons that showed from 60 percent to nearly 70 percent of them were smokers.
The gaming industry, Swoik said, is asking for a five-year exemption from the smoking ban, or until bordering states also prohibit smoking in public places.
Dana Heupel can be reached at 788-1518 or dana.heupel@sj-r.com.
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American Lung Association: Don’t exempt casinos from ban
By Mike Riopell
mike.riopell@lee.net
September 15, 2007
Normal
Businesses hope to be exempt from smoking law
June 4, 2007 The new law banning smoking in public places begins Jan. 1, and there are businesses already working to be exempt from the measure.? The gaming river boats across the state have started the process to be exempt from the no smoking law.
Northwest Herald – Crystal Lake,IL,USA
Is everyone willing to pay their fair share? It’s going to be very interesting to see if this smoking ban includes the casinos and if it really is free.
Bloomington Pantagraph – Bloomington,IL,USA
A panel of state lawmakers approved a measure Tuesday that would burn the first loopholes in the proposed statewide smoking ban. The ban, which awaits Gov. …
Now, there are two pending bills on behalf of gambling to protect them from SB500 Smoke Free Illinois.? One for a Riverboat Casinos Examption (HB 0025), which is an amendment to an existing law, with two new amendments attached to it, and this one….
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Here is SB 890?
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What a ridiculous legislative mess!
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The Smoker’s Club, Inc. – Midwest Regional Director
The United Pro Choice Smokers Rights Newsletter – http://www.smokersclubinc.com
Illinois Smokers Rights – http://www.illinoissmokersrights.com/
mailto:garnetdawn@comcast.net – Respect Freedom of Choice!
By Kevin McDermott
24 May 2007
Legislators say they’re “exploring the idea”
By Nishi Gupta
Attempt to exempt gaming boats fails in state Senate
By SANFORD J. SCHMIDT
By Mike Riopell, The Southern Springfield Bureau
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SPRINGFIELD – If lawmakers decide to outlaw smoking in all Illinois workplaces this year, casinos could have three years to adapt.
Also, the newly introduced amendment to SB500 for casinos.? Compliments of Terry Link, Vernon Hills.
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