SUPPORT SB 1849 (Link /Lang) 

NEW GAMING REVENUES TO FUND EDUCATION AND
CAPITAL PROGRAMS AND TO CREATE AND SAVE JOBS

 BACKGROUND

                Last spring, the General Assembly passed major gaming legislation that the Governor has criticized.  SB1849 incorporates changes recommended by the Governor.  The Illinois Commission on Government Forecasting and Accountability in its 2010 report on “Wagering in Illinois” indicates that the “most prominent ideas for improving state revenues include establishing new riverboats near Chicago, increasing the maximum number of gaming positions, and allowing slot machines at racetracks”.  SB 1849 implements this plan.

PLAN

New Gaming Positions

·         Provides for 1 Chicago land-based casino [4,000 gaming positions].

·         Provides for 4 new riverboats (land-based optional): Danville (Vermillion Co.), Park City (Lake Co.), South Suburban Cook County (Cook Co.) and Rockford (Winnebago Co.) [1,200 gaming positions per facility]. 

·         Current law authorizes 12,000 gaming positions (1,200 at each of the 10 riverboats).  This bill increases the number of gaming positions at the existing and new riverboats to 1,600. 

·         All riverboats may become land-based.

New Electronic Gaming (“Racino”)

·         Grants gaming positions to the State’s 6 racetracks (“racinos”) – Each Cook County track (Arlington, Hawthorne, and Maywood) is authorized up to 1,200 positions.  Each track outside Cook County is authorized up to 900 positions (Balmoral, Quad City Downs, and Fairmount). Quad City Downs may implement 350 positions initially but may group to 900 at a later date.  Requires additional dollars to be spent on backstretch workers, university research, State & county fairs, and retired or injured thoroughbred horses, increases purses by $60 to$80 million per year. 

·         Provides that racetracks must operate live racing opportunities for horsemen.

·         Eliminates the casino impact fee; eliminates purse recapture; and eliminates the 10^th license subsidy to racing.

REVENUES TO THE STATE

·         The Education Assistance Fund is estimated to receive an additional $536M-$785M annually between CY13-CY18. 
Note:  The Education Assistance Fund received $445M in CY08 and $382M in CY09.

·         The Capital Projects Fund is estimated to receive $68M-$105M annually between CY13-CY18.

·         The State’s total annual privilege tax revenues from all facilities (existing and future) are estimated to be between $750M-$969M in CY13-18. 

·         The State is estimated to receive the following up-front licensing and initial fees ($440M for State debt pay down).

·         The State is estimated to receive the following reconciliation payments within 5-7 years after gaming positions become operational ($970M for State debt pay down).

·         Creates Future of Agriculture Fund for new funding of county fairs, 4-H and FFA programs, soil and water conservation, forestry and parks. $25M will be spent annually for these agribusiness programs from taxes from electronic gaming.

·         Authorizes funds to rebuild Illinois State fairgrounds.

JOBS

The proposal would create an estimated 1,200 to 1,500 new permanent jobs at the racetracks and an estimated $200 million to $400 million capital investment at these tracks, which would support hundreds of trade organization jobs to construct new facilities or remodel the racetracks to operate electronic gaming.  In addition, new casinos will serve as an economic development engine for Illinois, expand our tourism and hospitality industries, and provide 1,000’s of new jobs for Illinois.  The proposal would support the state’s historic horse racing industry and stem the loss of racing jobs to other states.

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