All bets are off on gambling expansion, for now

SPRINGFIELD -- The political fallout from the indictment of Gov. Rod Blagojevich's friend and gambling adviser began Friday as a potential vote next week on a massive state gambling expansion was canceled.

House Speaker Michael Madigan, a Chicago Democrat, sent a letter to lawmakers saying "in light of subsequent developments this week, the legislative process will be better served by holding session on these topics at a later date."

Gambling has emerged as the only politically palatable way to come up with money to finance billions worth of road, bridge and school construction, and that deal is needed to round up support for a bailout of the Chicago area's transit agencies, which face a financial "doomsday" next month if the state doesn't act.

A spokeswoman for Gov. Rod Blagojevich indicated the governor may use his powers to order lawmakers back to the Capitol next week regardless, and tried to steer focus back to the looming transit deadlines.

"Sadly, it's not surprising that Speaker Madigan would, at the last minute, cancel a scheduled session to consider a plan to fund the CTA," spokeswoman Abby Ottenhoff said in an e-mail to reporters.

It's the latest back-and-forth between the two Democratic heavyweights with the future of bus and train routes, fares and jobs hanging in the balance.

Just a few days ago, Madigan told lawmakers to be at the Capitol on Dec. 17 to consider a possible deal.

But on Thursday federal prosecutors indicted Chris Kelly, a South suburban roofing contractor and close personal friend of the governor, on charges stemming from alleged illegal betting and breaking the law to conceal gambling debts. Blagojevich had tapped Kelly, a key fundraiser, to work on past gambling policy.

In canceling the session, Madigan said the situation underscores the need for tighter gambling regulation and a "genuinely independent Illinois Gaming Board." He criticized the governor for not endorsing such plans in recent days.

"To say the least, this is a puzzling state of affairs," Madigan said in the letter. He urged lawmakers to encourage the governor to support reforms, "so that gambling in this state may operate in a completely above-board manner and without the slightest hint of impropriety, scandal or corruption."