Proposed Chicago casino has city officials worried
A proposal to put a land-based casino in this city to help fund various state programs and local mass transit has officials of at least three riverboat casino cities worried about the impact on their local budgets.
Elgin, Aurora and Joliet receive millions of dollars a year in taxes and fees from riverboat gambling. Officials of those cities expect the tide of dollars to recede if Illinois legislators approve an expansion of gambling into Chicago.
Casino revenue represents about 9.4 percent of Elgin's proposed $301 million budget for 2008, which council members are expected to adopt next month. Elgin Assistant City Manager Sean Stegall says a casino in Chicago could cost Elgin about $10 million in taxes and fees from the Grand Victoria Casino.
Elgin Mayor Ed Schock said gambling proposals being floated in Springfield depart from the original intent of legislation allowing casinos, which was to encourage development in economically depressed areas.
"What's next? Are they going to put slot machines at the NASCAR racetrack?" Schock said.
State lawmakers want money for transportation projects throughout the state and mass transit in Chicago. Ways to provide that money are limited. And gambling expansion often is seen as the least painful avenue for taxpayers and politicians.
Joliet officials say the city could lose 10 percent to 15 percent of the $14 million it receives annually from the Empress Casino and Harrah's Joliet Casino if Chicago gets a casino.
Aurora officials have expressed concern but have not done any estimates of the impact on the $16 million the city receives annually from Hollywood Casino Aurora.
Officials of all three cities say they are working with their legislators to protect their interests.
"Our legislators are acutely aware of that 10 to 15 percent," said Jim Shapard, Joliet's deputy city manager. "They have assured us that they are taking measures to offset that."
Elgin's City Council has adopted a resolution opposing any proposal that would expand gambling, allow new casinos in the Grand Victoria's market or allow slot machines at horse-racing tracks.