Will video gambling falter? Don't bet on it

Video gambling in bars, clubs and restaurants across Illinois was supposed to bring in hundreds of millions of dollars to fund construction projects.

So far it is just creating headaches.

With state regulators saying they don't have the cash or staff to manage the massive expansion, the delay is creating room for opposition to grow. Now lawmakers are returning today to the state Capitol facing pressure to either reverse the legalization or vote a second time for the controversial plan so it can be fully funded.

"This went through very quickly," says Anita Bedell, director of the Illinois Church Action on Alcohol and Addiction Problems, which has been urging suburbs to ban the slotlike machines. "This gives grass roots activists time to speak out."

The group and others, such as the Chicago Crime Commission, are expected to ramp up lobbying efforts to push proposals introduced by state Rep. Jack Franks to either repeal the law or allow voters to have a say about it on February's primary ballot.

"Let's have a real debate on this," said the Marengo Democrat.

Opponents point to a growing list of suburbs voting to ban the machines as evidence the public doesn't support allowing up to five of them each in bars, liquor-pouring restaurants, truck stops or fraternal clubs, as the law allows.

Lake County Board members Tuesday joined those from Cook and DuPage counties in outlawing the machines in unincorporated regions.

Supporters, including bar owners and machine makers, say the gambling devices are already in a number of places illegally and it is better than hiking taxes.

The debate is muscling for attention during this fall's brief two-week session when lawmakers could also consider ethics reform, college scholarship funding, major budget cuts and tax hikes.

Meanwhile, getting the legal machines up and running is proving to be a major impediment itself.

Illinois Gaming Board members say that without more money and manpower they can't come up with rules to vet bar owners and vendors or devise a way to keep organized crime out of the business. The board will need several million dollars upfront alone to buy a computer system to monitor the 45,000 or more machines 24/7.

Yet, there remains no clear agreement on how to come up with the cash.

House Speaker Michael Madigan so far has taken aim at regulators. His spokesman, Steve Brown, said the gaming board is "dragging their feet" on implementing the rules. He said the rules can simply be cribbed from those used to regulate the state's nine casinos.

Brown agrees more money is needed for enforcement, but he said that can be decided on after regulators come up with the rules as directed under the law.

Gaming board spokesman Gene O'Shea declined to comment in response to Brown's contention.

Meanwhile, Senate President John Cullerton is looking at introducing legislation to pull money from public works projects for the gaming board to get the system up and running. And Gov. Pat Quinn's spokesman says he is still in negotiations with the gaming board over where to find funding.

The uncertainty over how to move forward could stem in part from what appears to be strengthening opposition.

The expansion of video gambling machines had been floated for years, but it didn't gain real traction until it was added by legislative leaders this spring to the funding mix for the $31 billion public works package.

In signing the law this summer, Quinn reneged on a campaign pledge to not expand gambling. He was quickly ridiculed by reform groups who view the legalization as the most corruptible form of gambling expansion.

The legislation was pushed by lobbyist Joseph Berrios, who as a Cook County property tax appeal commissioner votes on cases handled by Madigan's law firm. Berrios also heads the Cook County Democrats. Quinn won their influential backing recently over primary challenger Dan Hynes, Illinois' comptroller. Berrios is now running for Cook County assessor.

Illinois is one of just a handful of states to legalize such a pervasive use of slot machines and several states have rescinded such expansions in the past.

Still, reversing legalization faces major hurdles.

For one, lawmakers would likely have to come up with another funding source to bring in upward of $400 million annually for public works projects. Options include new casinos or a gas tax hike, but none are gaining traction.

Plus, influential unions and local officials have been calling for the public works spending for years. They are unlikely to want to give up any projects or jeopardize funding.

But the opposition isn't giving up.

"We intend to hold our elected officials accountable," said the Rev. Tom Grey, a veteran fighter of legalized gambling in Illinois and nationally. "The legislature just can't come up with enough money to regulate this properly."