Horse racing tracks hope for riverboat money

SPRINGFIELD - Four Illinois riverboat casinos failed to get the U.S. Supreme Court to hear their challenge to a law requiring them to share their profits with the state's ailing horse-racing tracks.

The court's decision Monday means Illinois tracks expect to share in an estimated $80 million - money set aside under a 2006 law requiring state riverboat casinos that gross over $200 million annually to give 3 percent of their take to the horse-racing industry.

The boats - in Aurora, Elgin, and two in Joliet - asked the high court to review whether the law violated the U.S. Constitution's prohibition on unwarranted seizure of assets. The Illinois Supreme Court ruled last year that the "takings" clause applies to government acquisition of private land, not taxes.

The casinos had paid the fee in protest and money was set aside in a special state account during the three-year life of the law. About $79 million was in the account at the time of last June's state court ruling.

Edward White, a lawyer for the three racetracks that intervened in the suit, said Tuesday that the amount has increased with interest, but that he didn't know how much. He said he would try to get the money disbursed as quickly as possible.

"The Legislature had a purpose when they created the fund and the tracks need the money," White said.

Spokesmen for the four riverboats affected did not immediately return phone messages.

The tracks hope the ruling will lead to the dismissal of another, similar lawsuit over the requirement, this one over a version signed in December after the original law had expired.

In a federal criminal indictment against former Gov. Rod Blagojevich, prosecutors allege he tried to extort a $100,000 campaign contribution from John Johnston, who runs Maywood Park and Balmoral Park in the Chicago area, in exchange for signing the extension.

There's no record of a contribution. Blagojevich was arrested in his home Dec. 9. According to Johnston's lawyer, the FBI has interviewed Johnston but told him he is not a target of the investigation.

Lawmakers first approved riverboat gambling in 1990. When they adopted the 2006 law, supporters pointed out that from 1992 to 2005, on-track horse race betting dropped 42 percent, from $835 million to $482 million.

Riverboats countered with a study showing off-track betting cut into track-side action more than casinos.