Industry group angles to stop rejection of video poker
In the wake of numerous suburbs rejecting legalized video gambling in bars and other businesses, supporters of the state-authorized expansion are moving to stem their losses and save the multibillion-dollar deal.
The gambling industry-funded "Back to Work Illinois" has been lobbying suburban mayors, newspapers and other public officials in recent weeks after more than 70 governmental bodies opted out of the legalization. The group is also working to convince Chicago officials to opt into the legalization - a critical element in saving the plan.
"Nobody was educating folks," Greg Goldner of Back to Work's consulting firm told the Daily Herald editorial board Wednesday. "Back to Work is doing just that."
The so-called video poker machines were legalized in bars, liquor-serving restaurants, fraternal clubs and truck stops as part of Gov. Pat Quinn's $31 billion spending package on road, transit and school construction.
But the $350 million that the so-called video poker machines are supposed to bring the state is under considerable threat because many towns have rejected the law and Chicago still holding to its own ban.
Now Goldner is pointing to what he sees as success for the group, a winning streak he hopes to maintain.
As many as 17 governmental agencies a month were opting out of the legalization during the summer. Only one town opted out in March, he said. The group started Jan. 4.
Back to Work's chief argument is the construction jobs and infrastructure work set to be paid for from 40,000-plus machines that will roll out late this year. The group is funded by national and statewide associations whose members stand to gain from distributing and making the gambling machines.
Goldner dismissed talk of replacing legalized video gambling with another revenue stream, including adding slot machines to racetracks, raising fees or gas taxes or authorizing a Chicago casino. Quinn has said he is open to a switch if lawmakers are on board.
"Changes don't seem likely," Goldner said, adding those ideas were originally considered by lawmakers and rejected.
Aside from arguing that towns rejecting the machines threaten the solvency of the package - and therefore local projects - the group also hired former FBI Agent Walter Stowe to back up a contention that legalization will help root out mob influence in the underground business.
Stowe now works for gambling companies and once headed one of the associations funding Back to Work.
"There is a huge number of games that exist out there right now," Stowe said of the existing "amusement only" illegal gambling machines in bars across the state. Stowe says a regulated environment will cut off mafia funding. The old poker machines are now banned outright, so it should be easier for police to confiscate them, he says.
Stowe's contention is disputed by several in law enforcement who believe the mob will simply find other ways to get into the business, perhaps by setting up shell companies and strong-arming customers.
"It is not (realistic to think) that the outfit will say, 'We are done. We will move on. We will do something else," said Chicago Crime Commission head Art Bilek.
Illinois Gaming Board Chairman Aaron Jaffe has said it may be "almost impossible" for his regulators to keep crime out of the business given the vast number of locations and licenses.
A litany of union and business groups have signed on to Back to Work's push, including the Illinois Chamber of Commerce. Doug Whitley, chamber president, spoke Wednesday in favor of video gambling.
But he made clear that the chamber supports the expansion only because it funds infrastructure upgrades.
"What we told the legislators at the time was, 'Look, we know it is hard for you to vote for any revenue measure and we will cover your back. We will support you for the tough vote you took because we know infrastructure investment in Illinois is that important,'" Whitley said.