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Gaming roundup

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* Zoom out…


Yes, yes, yes. Your favorite horse track will likely have a sportsbook and basically a casino. They just don’t fall under the “sports venues” category.

— Joe Ostrowski (@JoeO670) June 3, 2019

The bill allows:
-Casinos in Chicago, Waukegan, south suburbs, Rockford, Danville and Williamson County (So-IL)
-Allows slots at O'Hare and Midway airports
-Slots @ horse tracks
-New horse track in Palatine
-Video gaming facilities can add machines, gamblers can bet more on 'em https://t.co/EaRZFC1yTS

— Amanda Vinicky (@AmandaVinicky) June 1, 2019

Gaming bill language has been filed. Chicago, Waukegan, Rockford, Danville would all get a license each to operate a casino. One license for one township in Cook County (Bloom, Bremen, Calumet, Rich, Thornton, or Worth Township), and one license for Williamson County.

— Daisy Contreras (@DaisyJourno) May 31, 2019

The southern Illinois casino is going to Walker’s Bluff.

…Adding… The bill also authorizes up to 50 video gaming terminals during the Illinois State Fair in Springfield and up to 30 during the DuQuoin State Fair. Beer tents can have up to 10 terminals each.

* Overview

The massive gambling bill that included a major casino in Chicago and smaller ones in the south suburbs and Waukegan also would open up slots for Chicago’s airports and the state’s horse racetracks, and legalize sports betting. It awaits Senate approval.

The Chicago casino would be privately owned, and the city would get one-third of all tax revenue from it. The casino would have up to 4,000 gambling positions — slot machines or seats at a gaming table — while other new and current casinos could increase their gambling positions from 1,200 to 2,000. It also would allow horse tracks to have 1,200 gambling positions.

For sports betting, licenses would go to all existing and newly authorized casinos as well as horse racetracks and sports venues with license fees ranging from $3.2 million to $10 million.

For the first year and a half, bettors would have to create an account at a licensed gambling facility and then could make deposits online afterward. After 18 months, three online licenses would be created at $20 million per license. Fantasy sports wagering firms could partner as an online vendor at casinos, racetracks or sports venues.

A lottery sports wagering program also would be created.

Sports leagues would not get any of the cut, and wagering on Illinois college teams would be prohibited by the legislation.

* Sports betting

The bill, which the governor is expected to sign into law, grants retail casinos an 18-month head start on the mobile market. The casinos will be able to begin accepting bets almost immediately whereas all other entrants—such as DraftKings and FanDuel—will have to wait until late 2020 or early 2021 to begin operations. Eilers & Krejcik Gaming estimated that DraftKings and FanDuel accounted for 79 percent of New Jersey’s mobile betting market in April. Illinois will limit online-only sports books to three licenses, each to be sold for $20 million. Mobile betting is widely projected to capture at least three-quarters of the betting market.

DraftKings CEO Jason Robins criticized the bill on Twitter, writing, “While it is good to see sports betting bills passed, excluding DraftKings and FanDuel is like passing a ride sharing bill that excludes Uber and Lyft. Very disappointing that Illinois customers will not have the best options available to them for 18 months.”

While the leagues will not receive any kind of royalty or integrity fee, they will receive direct revenue from a provision requiring official league data for all in-play and prop bets. Illinois is now the second state to mandate this, following Tennessee’s new law in May.

Large sports venues such as the Bears’ Solider Field and the Cubs’ Wrigley Field would be able to apply for licenses to install betting kiosks on site. The only other current U.S. legislation to enable installations at stadiums, arenas, and ballparks is the one passed by the District of Columbia, though its regulations have not yet been finalized. Capitals, Wizards, and Mystics owner Ted Leonsis has championed legalized sports betting and plans to install a sportsbook at his Capital One Arena. Currently, the only sports venues where a fan can legally bet are the ones with mobile sports betting, such as in New Jersey and Pennsylvania.

More

SB 690 enables the Illinois Gaming Board to issue six different types of licences to operators seeking to offer sports betting in the state: a master sports wagering licence, occupational licence, supplier licence, management services provider licence, tier two official league data provider licence, and central system provider licence.

Each license will be applicable to a certain service or offering in the state, with the fee for a master licence to be set at 5% of the holder’s total handle from the following calendar year, up to a maximum of $10m

* Tracks

Additionally, the legislation permits a new harness track to be built in one of seven townships located within Cook County, which includes Chicago and both Chicago-area tracks. The new venue couldn’t be situated within 35 miles of either existing racing facility without the track granting permission. Harness tracks Maywood and Balmoral both ceased operations in recent years. Only a truncated harness meeting remains at Hawthorne. […]

The new legislation will fortify horse racing in the state because it specifies minimum racing dates for tracks that take on a casino license. If one casino license is issued to a Chicago track, that track must run 110 days the year it’s awarded, 115 the next, and 120 per year afterwards. If two casino licenses are issued to Chicago tracks those numbers rise to 139, 160, and 174. Fairmount would be required to run at least 700 races per year if it receives a gaming license. The legislation also boosts purses for Illinois-bred horses and monetary awards paid to the state’s breeders.

* Revenue

Within the capital measure to fund vertical projects, which include buildings, such as schools and recreational facilities, $150 million would come from an increase in video gaming terminal taxes; $10 million from sports wagering revenue; $500 million from upfront license fees from casino and sports betting; $30 million from a tax on parking garages and lots; $68 million from an increase on the real estate transfer tax on commercial properties; $45 million from removing the sales tax exemption on traded-in property valued above $10,000; and $156 million from an increase on the cigarette tax by $1 per pack.

* Heh

State Senator Terry Link, a Democrat from Vernon Hills, has pushed for years to expand casino gambling. He finally got his wish Sunday, on his wedding anniversary.

“For the sake of my marriage, for the sake of the state of Illinois, vote this out with your green lights,” Link said.

The bill passed the Senate 46-10-2. Senate Republican Leader Bill Brady voted “Present”

State Sen. Bill Brady of Bloomington has financial ties to the company that operates half the video gambling terminals in Bloomington-Normal.

State records show Ellsworth-based Midwest Electronics Gaming has brought in $18 million from video gambling terminals in Bloomington-Normal over the last two years. That’s the firm ProPublica reported has financial ties to Brady, the Senate minority leader.

State and municipal records show Midwest Gaming licenses 174 terminals at 39 establishments in the Twin Cities. That’s about half.

From 2012

When the gambling expansion bill was approved by the Illinois Senate last week, state Sen. Bill Brady, R-Bloomington, was a “present” vote. […]

“In this case, I have an equity interest in a hotel in Danville, Illinois. And, when Danville was thrown into the bill, my ethics officer advised me that I should declare a conflict by voting present,” Brady said.

* Related…

* Gaming expansion allows for Fairmount ‘racino’ and more positions at Casino Queen, Argosy

posted by Rich Miller
Monday, Jun 3, 19 @ 1:05 pm

Comments

  1. I think you forgot the Illinois State Fairgrounds and the DuQuoin State Fair. At some point during the last few days I think I saw something that mentioned them as well.

    Comment by Downstate Illinois Monday, Jun 3, 19 @ 1:15 pm

  2. That’s some expansion, on top of existing casinos and slots already all over the state.

    If will be interesting to see who’s up-and-running in five years, ten years.

    Comment by wordslinger Monday, Jun 3, 19 @ 1:16 pm

  3. Good for the Score for sending Joe O down to Springfield to cover something a large part of their audience cares about. He did great for someone without any prior political reporting experience.

    Comment by Grand Avenue Monday, Jun 3, 19 @ 1:25 pm

  4. Nice to see that they are encouraging more racing at Arlington.

    Comment by Chicagonk Monday, Jun 3, 19 @ 1:26 pm

  5. Does the legislation specify which townships could build a new harness facility? Cook County has thirty suburban townships and it would be difficult to think of one that isn’t within thirty-five miles of Arlington Park or Hawthorne Race Course.

    Currently, there are 122 days of live racing at Hawthorne (71 harness dates and 51 thoroughbred dates).

    This is a big deal because the tracks have been struggling for ages.

    Comment by Practical Politics Monday, Jun 3, 19 @ 1:26 pm

  6. I believe the lottery option would let you make NFL parlay bets anywhere you can buy a lottery ticket.

    Comment by Grand Avenue Monday, Jun 3, 19 @ 1:28 pm

  7. I thought the Fire were moving out of SeatGeek Stadium? A sports facility with no professional sports but with sports betting? Guess the ownership value of that facility increased greatly.

    I like the idea of slots at the airports. No more a rip-off than the prices they charge on anything else.

    And a casino on the Cal Sag? I remember that idea being floated (pun intended) decades ago.

    Comment by City Zen Monday, Jun 3, 19 @ 1:33 pm

  8. Did Peoria get a casino license or not?

    Comment by Illinifan Monday, Jun 3, 19 @ 1:35 pm

  9. These additional funds will help with racing purses which should help with the quality and quantity of racing in Illinois. A few years back Kentucky Derby qualification switched from a money-won measurement to a points system, before it did one of the big Kentucky Derby prep races was the Illinois Derby. It would be nice to see some local action get back into the mix somehow. Also it would be great if the new track was easily accessible from public transportation, or at least close to a major expressway.

    Comment by The Captain Monday, Jun 3, 19 @ 1:35 pm

  10. -’New horse track in Palatine’- ??
    Is that a harness track? and certainly within 35 miles of Arlington Park/Arlington Heights. I never heard that discussed and can’t believe AP would give permission.

    Comment by DE Monday, Jun 3, 19 @ 1:38 pm

  11. =If will be interesting to see who’s up-and-running in five years, ten years.=

    It will also be interesting to see which of the current operators are still running in 5-10 years.

    The original premise of gaming was to breathe life into economically depressed areas (downtown Joliet, Elgin, Aurora). The goal was to make these areas destinations for those that wanted to gamble. But as more casinos are constructed gamblers will have less of a need to travel to participate.

    Comment by Pundent Monday, Jun 3, 19 @ 1:40 pm

  12. The new harness track for the south suburbs (likely Tinley Park) is interesting. That means the gaming expansion law essentially allows two new casinos in the south ‘burbs. That’s on top of new potential sports books at the soccer stadium in Bridgeview and NASCAR track in Joliet…not to mention the two existing casinos in Joliet and three in Northwest Indiana….not to mention the expansion of video poker in bars, restaurants and “gaming cafes,” which are quite plentiful already in south Cook. Maybe we should just rename I-80 “North Las Vegas Boulevard.”

    Comment by Can you say “gaming cannibalization?” Monday, Jun 3, 19 @ 1:46 pm

  13. —The original premise of gaming was to breathe life into economically depressed areas (downtown Joliet, Elgin, Aurora)–

    Have you been to Rockford, Waukegan, or Danville lately? They fit the bill.

    Comment by Jake From Elwood Monday, Jun 3, 19 @ 1:46 pm

  14. Not sure where the Palatine stuff came from, new track will be in South suburbs.Text from SB690…

    “the Board shall issue an organization license limited
    1to standardbred racing to a racetrack located in one of the
    following townships of Cook County: Bloom, Bremen, Calumet,
    1Orland, Rich, Thornton, or Worth. This additional organization
    license shall not be issued within a 35-mile radius of another
    organization license “

    Comment by Donnie Elgin Monday, Jun 3, 19 @ 1:47 pm

  15. This will breathe life into the horse racing facilities, hopefully saving and creating jobs. I only get to Arlington once a year, but the crowds have been decreasing and the races had a dwindling number of horses. If sports books are included, it is a big win. I only wish a was a skilled gambler.

    Comment by SSL Monday, Jun 3, 19 @ 1:48 pm

  16. Good on not having to pay a royalty/integrity fee.

    Comment by Jose Abreu's Next Homerun Monday, Jun 3, 19 @ 1:51 pm

  17. ===-’New horse track in Palatine’- ?====
    I believe that is in reference to allowing gaming at Arlington Park racetrack which is located in Palatine Township.

    Comment by Been There Monday, Jun 3, 19 @ 1:52 pm

  18. So when will the video gaming folks be able to add the addtional seat as well as increase the bet limits.

    Will be interesting to look at the data and see how fast the addtional seat spreads.

    Comment by OneMan Monday, Jun 3, 19 @ 1:55 pm

  19. I wonder if the casino in Walkers bluff will finish off the casino in metropolis?

    Comment by Blue Dog Dem Monday, Jun 3, 19 @ 1:56 pm

  20. Baby Boomers: “your favorite horse track”

    Millennials: “what’s a horse race track? Do I have to leave my
    house or can I do it on my phone? Oh, it costs money, no thanks”

    Comment by Merica Monday, Jun 3, 19 @ 2:00 pm

  21. =Have you been to Rockford, Waukegan, or Danville lately? They fit the bill.=

    No doubt. My point is directed more at the saturation that will occur in the Chicago metro area. I question whether any of the legacy “riverboat” locations will be viable in 5-10 years given the amount of competition.

    Comment by Pundent Monday, Jun 3, 19 @ 2:00 pm

  22. Heard on horse racing network this morning that Arlington & Hawthorne can have table games but not Fairmount. True or false?

    Comment by Collinsville Kevin Monday, Jun 3, 19 @ 2:03 pm

  23. They should put the new casino in Homewood. Then it can be in Rich, Thornton, Bloom AND Bremen townships.

    EVERYBODY WINS(Banned Punc)

    Comment by ChrisB Monday, Jun 3, 19 @ 2:06 pm

  24. Nothing says classy global city like slots in the airports.

    Comment by Ok Monday, Jun 3, 19 @ 2:10 pm

  25. =If will be interesting to see who’s up-and-running in five years, ten years.=

    It will also be interesting to see which of the current operators are still running in 5-10 years.–

    It was the current operators I was primarily referring to (including northwest Indiana).

    Bright, shiny, new things are usually a hit in the gaming industry — until the next ones come along.

    Comment by wordslinger Monday, Jun 3, 19 @ 2:12 pm

  26. ==Nothing says classy global city like slots in the airports.==/s

    Fixed it.

    Comment by Enviro Monday, Jun 3, 19 @ 2:16 pm

  27. SeatGeek Stadium may be eligible for a license, but the Fire are relocating to Soldier Field next year. I wonder if the GA will take the stadium off the list?

    Comment by God's Country Monday, Jun 3, 19 @ 2:28 pm

  28. But everyone is a winner./s

    Comment by Blue Dog Dem Monday, Jun 3, 19 @ 2:31 pm

  29. City Zen: Chicago Fire are moving back to Soldier Field. However, the Chicago Red Stars, professional women’s soccer team, will still play in Bridgeview.

    Comment by Offshore Accounts Monday, Jun 3, 19 @ 2:34 pm

  30. ” This additional organization license shall not be issued within a 35-mile radius of another organization license”

    ALL of Cook County is within a 35-mile radius of Hawthorne. So that doesn’t work as written.

    Comment by Chris Monday, Jun 3, 19 @ 2:51 pm

  31. Doesn’t look like any of the Chicago tavern licensees except ones in the airports will get video poker unless I missed something.

    At least now Chicago will get some gaming revenue from the casino (and little rake on sports bets?) but no video poker will be a big blow to the couple hundred neighborhood taverns still left that were holding out.

    Comment by ChicagoBars Monday, Jun 3, 19 @ 2:54 pm

  32. This is a micro-issue, but I’m curious how sports talk radio is going to handle the change. They’ll get tons of ad revenue from the operators and the “information brokers” offering to pick winners for people, but in my experience most sports fans want to listen to talk about teams winning or losing, and don’t like the segments about beating the spread, fantasy leagues, or the like.

    Comment by lake county democrat Monday, Jun 3, 19 @ 2:55 pm

  33. The racetrack in the Quad Cities has been closed for 20+ years, and then was an off-track betting parlor until recently. Is it eligible to reopen w/sports betting & slots, etc? They have not sold the property.

    Comment by Interim Retiree Monday, Jun 3, 19 @ 3:20 pm

  34. Chicago taverns are fully eligible for video poker under state law, but the City Council needs to approve it.

    Based on Mayor Lightfoot’s fear that sports betting at stadiums would hurt the revenue of the soon-to-be Chicago megacasino, I have a feeling she will not be seeking video poker in bars for the same reason.

    Comment by Fax Machine Monday, Jun 3, 19 @ 3:21 pm

  35. @Lake County Dem

    If you don’t want to hear about point spreads, I would avoid listening to sports radio on Fridays during football season, because there will probably be a handicapper on every hour.

    Comment by Fax Machine Monday, Jun 3, 19 @ 3:24 pm

  36. Lake County Democrat - I think the score had an ad this morning with celebration by KC and the Sunshine band playing in the background promoting how they are going to cover it and what this means

    I suspect sports betting is going to play a bigger role than it already does (they have had handicapers on for a while). I also suspect a ton of sports book ads are coming.

    Comment by OneMan Monday, Jun 3, 19 @ 3:29 pm

  37. Is the the gambling crowd really large enough to support all this? Gambling simply has not come up in any conversation in the last couple of years. Last horse race I went to had a lot of empty seats. But hey, their money to spend. Good luck.

    Comment by zatoichi Monday, Jun 3, 19 @ 3:31 pm

  38. ===Heard on horse racing network this morning that Arlington & Hawthorne can have table games but not Fairmount. True or false?====
    I don’t read it that way. I don’t see where Fairmount is excluded.

    Comment by Been There Monday, Jun 3, 19 @ 3:31 pm

  39. ===I have a feeling she will not be seeking video poker in bars for the same reason. ===
    I am thinking you are right. At least until after the downtown casino gets up and running. I don’t think she is worried about the mom and pop taverns competing as that is like saying that Gibsons worries about the local pizza joints. But most of the downtown hotels have four, five or maybe liquor licenses on their premises and having them all over downtown could hurt it. I wonder if the city could pass an ordinance that allows it to pick and choose which wards in can be in?

    Comment by Been There Monday, Jun 3, 19 @ 3:37 pm

  40. Will be highly disappointed if Anita Bedell doesn’t issue an outlandish press release in response

    Comment by Lester Holt’s Mustache Monday, Jun 3, 19 @ 4:00 pm

  41. For nearly a decade the line out of City Hall in Chicago was that you can’t have neighborhood video poker because it would diminish the eventual (and I really can’t believe this has actually come to pass) license fee for a Chicago casino… money which will be used to pay down pension debt.

    I don’t personally expect that to change anytime soon and am sure that most Chicago Aldermen will happily avoid a vote for video poker in neighborhoods.

    Comment by Chicago Bars Monday, Jun 3, 19 @ 4:04 pm

  42. “I also suspect a ton of sports book ads are coming.”

    @One Man:

    Legalized bookmaking was advocated by Chicago Mayor Ed Kelly and opposed by Governor Henry Horner. It has taken almost eighty-three years to make it happen.

    Comment by Practical Politics Monday, Jun 3, 19 @ 4:57 pm

  43. If any of the casinos are going to a child or organization affiliated with the President, please get our money in advance. /s

    Comment by IllinoisCitizen Monday, Jun 3, 19 @ 8:01 pm

  44. == Is the gambling crowd really large enough to support all this? ==

    Not unless they expand the number of gamblers, as well as increase the take from current gamblers. The research shows that accessibility is a major factor in gambling. For this massive expansion to pay off, there will have to be a massive increase in gambling. It’s a good thing it’s not called a vice anymore.

    Comment by anon2 Monday, Jun 3, 19 @ 9:43 pm

  45. Not long ago gambling was labeled a vice along with smoking and drinking. Had the State enacted a plan to double the amount of smoking and drinking, the public would’ve been concerned about the consequences to public health. But doubling casino gambling, well there’s nothing to see here. The number of problem gamblers is likely to surge, since accessibility is a factor in how much gambling people do.

    Comment by anon2 Monday, Jun 3, 19 @ 9:59 pm

  46. Casinos are tacky, but this is Illinois and we do tacky very well.

    Comment by Bavette Monday, Jun 3, 19 @ 11:28 pm

  47. –Casinos are tacky,–

    Miss Manners here.

    Comment by wordslinger Tuesday, Jun 4, 19 @ 9:34 am

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