New Gaming Bill - New Problems In Illinois

[MichiganDale]

I received this memo from IHHA President Dave McCaffrey today....

Monday, April 8, 2013

                        A New Gaming Bill and a New Problem
With spring comes warmer temps and yet another gaming bill in the state legislature.  The latest bill is SB 1739.  We are told this bill will fix some of the problems (not horse racing related) that the governor had with previous bills.  The good part of SB 1739 is that the racino part of the bill is essentially the same as the racino part of the two previous bills that passed both the House and the Senate but were vetoed by Governor Quinn.  The bad part of this new bill and the reason for this correspondence is that it legalizes Internet Gaming (I-Gaming) and gives the racetracks and the current ADW license’s an option to attain an Internet gaming license.  Why is that bad?  Because Illinois horsemen are not included in any potential future revenues from the internet gaming piece of this new bill. What appears crystal clear to us is that the only reason why racetracks and ADW companies exist in Illinois today is because of their relationship with horse racing. The idea that they are being considered for an I-Gaming license without sharing revenue with horsemen is unfathomable. The IHHA and the ITHA (Thoroughbred Association) believe that SB 1739 as is currently written regarding Internet Gaming has the potential to kill horse racing. Yes, you read that right.  Without significant change, it potentially could end horse racing in Illinois.

We think the brick and mortar “racino” model that is in SB 1739 and took months and months of intense negotiations will be destroyed by SB 1739.  Consider the following current options handed to racetracks in this new bill. On the one hand, racetracks would have to spend upwards of a hundred million dollars to build a brick and mortar racino, pay tens of millions of dollars to license and purchase the slot machines, pay tens of millions more in gambling taxes, and then share the profits of that revenue stream from those slot machines with horsemen.  Additionally, recapture would end with the first dollar generated from slot machines at tracks.  On the other hand, in this current proposed SB 1739, racetracks can spend a fraction of the racino cost and own an internet casino.  Racetracks (internet gaming licensees) would only be required to pay $20 million of their future taxes up front.  They would not have to spend hundreds of millions to build brick and mortar racino facilities.  They would pay less in taxes on internet wagers than they would on racino wagers.  They would not have to share any portion of their revenues with horsemen, nor would they have to guarantee that racing continue, nor would they have to end their purse crippling practice of taking money away from horsemen in the form of recapture.  Simply stated, the current version of SB1739 is the death of horse racing in Illinois. 

If horsemen are expected to support this legislation then we will insist on the same benefits from an internet casino as we would from a brick and mortar casino.  In fact, because the entry point into internet gaming is so much less than the brick and mortar cost, we believe that our revenue share should see a substantial increase in percentage.

In a letter to his membership, Illinois Thoroughbred Horsemen’s Association President Mike Campbell wrote, "Unless SB 1739 is amended to require Arlington to share (I-gaming) revenue with purses, the proposal threatens to radically diminish Illinois horseracing and, in the process, cost thousands of middle class and lower-income workers their jobs, harming the best interests of the state of Illinois and its taxpayers."

The IHHA agrees with Mike Campbell.  So, what is it that we want?   SB 1739 needs to be changed.   Either the Internet Gaming language needs to be completely taken out of the bill or it needs to be changed to accommodate horsemen.  Over the next few weeks, our two organizations will work arm in arm to have the I-gaming part of the bill changed; if it does not get fixed, horsemen cannot sit idly by and witness another recapture-type effort pass under our noses. 

As we get closer to the end of the legislative session (May 31), we will provide regular updates.   Please stay informed.

Dave McCaffrey

 

[luc]

cOMplete waste of time..


ILL,WILL NEVER GET SLOTS,,

TILL THEY GET ,,MADIGAN ON BOARD..

AS SOON AS DAVE MACFFERY WAKES UP AND REALIZES THIS ,,HE WILL BE BETTER OFF.

STOP THE WATSE OF TIME ,,LETTERS AND CRAP..

BS ,,STORIES ,,FOR THIS IS THE 847674 VERSION OF THIS BILL I HEARD..


CANT TRUST LANG,,AND  CANT TRUST ,,GOVERNOR..


NOTHIN WILL HAPPEN IN THSI SESSION,,OR THE NEXT 12 SESSION,,


WASTIN NOTHIN ,,BUT TIME TO WRITE THESES FONEY ,,PROPOSALS..

[pezz97]

I am so tired of hearing about this. It isn't going to happen. People in the Illinois Government can't walk and chew gum at the same time, let alone pass a bill that will help millions.


I just want my ADW back NOW!!

[luc]

 shIt AINT  passin till they get ,,mike madigan on board period,,

he runs ILL,,NOT THIS WEASEL FCKIN GOVERNOR,,QUINN,,PERIOD

AND LANG THIS KNOWN RAT ,,AND LEGIT WEASEL,,IS NOT  GOOD ENUFFF TO WASH A  CAR ON MY CAR LOT ,,PERIOD,,


ANOTHER SESSION,,,MORE FCKIN BULLSHTT FOR ILL HORSESMEN AND WOMEN,,

WE ARE JUST SICK OF IT,,,


WE GOTTA RACE OUTSIDE OUR STATE JUST SO WE CAN BREAK ,,FCKIN EVEN


GIVE US A BREAK,,,LANG,,STOP YOUR BULSHTT,,ITS GETTIN REAL DEEP IN ,,ILL


LUCPARK,,

SORRY ABOUT THE SWEAR WORDS,,,GARY

BUT I'M PISSED GOOD   HORSE PEOPLE HERE IN ILL,,ALWAYS GETTIN THE FCKIN SHAFT

[Just Saying]

I shut down mi IL racing operation about 3 years ago. The handwriting was on the wall then. Casinos have millions and millions to dole out to politicians... horsemen have been starved out. I just don't think it gets any simpler than that. I now run a boarding stable for saddle horses. It's boring, but it pays the bills. I'd sure much rather be racing.

[careless hal]

This state is just so screwed up you could write a 12 volumn encyclopedia entitled " Guide to Illinois Government Corruption, Greed and Incompetence" 
I really think there can be no good ending to all this crap. 

[luc]

HEY HAL...


THIS STATE IS IN TROUBLE ANY WAY ,,IT LOOKS,,

PERIOD

[mo doc n]

I shut down mi IL racing operation about 3 years ago. The handwriting was on the wall then. Casinos have millions and millions to dole out to politicians... horsemen have been starved out. I just don't think it gets any simpler than that. I now run a boarding stable for saddle horses. It's boring, but it pays the bills. I'd sure much rather be racing.

In other words "It's a dead game laddie" 

[careless hal]

 It's insane!  I can go to a local bar and play slots, but racetracks can't have slots.

[MichiganDale]

Being a native Illinoisan that has lived in a couple of other States, its very clear that the Power Brokers in Illinois are so into themselves and their own little empires that they have Zero clue as to how ridiculous they look and how screwed up Illinois looks to those outside the State.....it was bad for years, its worse than it ever has been now....The most outrageous thing to come out of their mouths, from Quinn and Madigan on down is that they care about the people of Illinois....They could give a rats butt about the people of Illinois.....