Video gambling machines good to go, but regulation another story

A law is now on the books authorizing video gambling machines at bars, truck stops and liquor-serving restaurants across Illinois.

But Gov. Pat Quinn and lawmakers have not yet allowed the regulators in charge of the massive gambling expansion any extra manpower or money to get the licensing, background checks, computer systems and enforcement policies in place.

The disparity could lead to inconsistent and rushed oversight of potentially 45,000 video gambling machines - currently an underground industry historically dominated by the mob - that even in the best circumstances regulators say could take at least a year to get up and running.

"If I sound frustrated it is because, to some extent, I am," said Illinois Gaming Board Chairman Aaron Jaffe, who helped kill plans for an Emerald Casino in Rosemont after investor links to the mob were revealed. "We were never consulted about bringing this in and we were never consulted about what had to be done."

The Better Government Association has been raising concerns about the lack of support given the regulators as they embark on a plan to allow gambling machines on almost every main street in the state.

"The social costs are high to put this in place without due diligence," said BGA Director Andy Shaw, who urged Quinn not to sign the video gambling legislation and argued for public hearings.

Jaffe, a former Cook County judge, says it is difficult to predict how long it will take to get the proper policies and procedures in place to license tens of thousands of bars, restaurants, gambling machine operators and owners.

"We are just trying to get our brain around the statute at this time," Jaffe said.

But his best guess is at least a year, and that is only if the gaming board gets the proper funding to do the job right.

Currently the board has a $20.2 million budget and about 150 employees. Nearly half are state police officers, some stationed at in the state's nine casinos, and the other half are revenue department employees eyeing taxes and bookkeeping.

Every new video gambling machine under the expansion law is expected to be hooked up to a central computer for proper monitoring and tax collection. It will be the largest such system of any state with legalized gambling machines. But just writing a proposal for such a system could take months.

"I don't even know what that computer system would look like," said Jaffe. "This is a very complex thing. Every day a new question pops up."

The only clear deadline in the legislation Quinn signed earlier this month to fund a $31 billion public works spending plan is that the board is directed to have a set of rules in place within 60 days.

Jaffe says that is "basically impossible to do."

Plus, it is unclear is whether funding for some of the public works package will be delayed along with the video gambling machines. The other major funding element involves putting the Illinois Lottery online.

Jaffe said he has raised his concerns with members of Quinn's staff, but has not been given any solid commitments.

A spokesman for Quinn said the governor is working with the gaming board "to address its concerns." No additional details were provided.

Meanwhile, Senate President John Cullerton, who supported the plan, said in a recent interview that he is willing to revisit the law for some changes this fall if needed.

"If there is any suggestions that they have," Cullerton said of the gaming board. "Believe me ... tell us what you want to change and we will do it in November before this thing gets going. There is time."

Cullerton also argued that Quinn can unilaterally allocate money to the gaming board to plan and implement the expansion. The legislation drafted only directs new funds to the board from licenses for the machines, establishments and operators. No upfront funding is proposed as of yet.

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