Profits down at Elgin's riverboat casino

The state's smoking ban could be a bust for Elgin.

For the second straight month, receipts from the Grand Victoria Casino were down nearly 20 percent.

According to figures released Friday, the Elgin casino's revenues were about 18.5 percent lower than city leaders expected.

For February, that's $325,000 less from gambling receipts, although the city still received $1.56 million.

January casino receipts also were down. If this drop continues, it could mean about $4.3 million less for the city in 2008.

Sue Olafson, city spokeswoman, said Elgin leaders are very concerned about the past two months.

"If it continues, there's going to be serious consideration of what programs have to be cut back," she said.

The city received about $24.3 million from the casino last year.

At this year's pace, it will take in about $19.7 million.

The city has traditionally used casino revenue for large, one-time expenses or capital projects instead of paying for rank-and-file staff.

Elgin Mayor Ed Schock believes a combination of poor weather, the economy and the Jan. 1 smoking ban have led to the drop in business.

But most of all, he believes the smoking ban has had the greatest effect on the bottom line.

"I still hold out hope that a casino (smoking) exemption could go forward," Schock said. "When we lose money, the state is losing more money."

Earlier this week, an Illinois House committee voted down two proposals aimed at easing the no smoking law, including one that would have allowed businesses to buy smoking licenses from local governments.

Grand Victoria Casino representatives could not be reached for comment.

Officials from the Illinois Casino Gaming Association, which represents riverboat owners, have said business is down about 17 percent since the ban took effect Jan. 1.