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Gambling expansion stalls in wake of indictments

SPRINGFIELD - The political fallout from the indictment of Gov. Rod Blagojevich's friend and gambling adviser began today 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."

Just a few days ago, Madigan told lawmakers to be at the Capitol on Dec. 17 and to expect to consider gambling expansion and a possible bailout of Chicagoland's bus and train agencies in the following days.

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 to work on past gambling policy and Kelly also has been a top fundraiser for the governor.

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In canceling the upcoming session, Madigan said the situation underscores the need for tighter gambling regulation and a "genuinely independent Illinois Gaming Board," and 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, urging lawmakers to encourage the governor and others to support such 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."

In response, a spokeswoman for Blagojevich tried to steer focus back to the looming financial deadlines for the transit agencies. "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.

She indicated the governor plans to use his powers to order lawmakers back to the Capitol next week regardless.

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