Legislative Action
Many Chicagoans had high hopes that by the time the spring legislative session adjourned, there would be a law on the books making riverboat casino gambling legal in the Windy City. Mayor Richard M. Daley and Gov. Jim Edgar seemed to be in agreement that they would push for legislation authorizing five floating casinos there this spring. But before the session was too far along, it began looking like those hopes would have to be put on hold until after the November election. Even then, nothing is a sure bet. Riverboat gambling originally was billed as a means for filling the coffers of struggling Illinois river towns like Peoria and East St. Louis. The state law originally enacted allows 10 riverboat licenses to be issued statewide, but doesn't allow any of those licenses to go to Chicago. It soon became apparent, though, that riverboat gambling is far too lucrative for any city to ignore, including the state's largest. According to the Illinois Gaming Board, the state's 12 boats took in $79 million in April of this year. During floor debate earlier this year, state Sen. Peter Fitzgerald (R-27, Inverness) briefed his colleagues and everyone else who was listening on some specifics of just how lucrative the activity has become for individual investors. Reading from documents filed with the Securities and Exchange Commission, Fitzgerald reported that the state's top grossing riverboat, the Joliet Empress, returned $87.1 million in profits to its nine biggest shareholders within its first 18 months of operation. The top three shareholders each collected more than $15 million, or more than $840,000 a month, during that period. The nine share-holders nearly tripled their $7 million investment within six months after the boat opened. With money like that to be made, it's no wonder officials all over Illinois began setting their sights on luring riverboats to their own communities. Before long, it seemed everyone was clamoring for a riverboat, even in communities without a real river. In such an atmosphere. Senate President James "Pate" Philip (R-23, Wood Dale) had the perfect opportunity to flex some of his political muscle. He introduced a bill in the Senate that would create 10 new riverboat licenses for the state, with none guaranteed for Chicago. And he called for "pro-business" reforms to be attached to the riverboat gambling measure, making it clear that such reforms would have to be approved if any additional floating casinos are to be approved by his Republican-controlled Senate. The business reform connection. Senate Republicans reasoned, was that if riverboats were going to be approved as a mechanism for creating jobs and boosting business in a municipality (by luring tourists to hotels, restaurants and shops), lawmakers had better be ready to approve some measures that in Republicans' minds are guaranteed to improve the state's business economy. Specifically, Philip and other Senate Republicans want to see limits put in place for medical malpractice and product liability damages, changes in the state's worker's compensation laws and adjustments in awards to workers in the construction trade if their own negligence contributed to their injuries. But it's hard to imagine the state's House of Representatives supporting a linkage between measures like these and riverboat gambling, at least so long as the chamber is controlled by Democrats. House Democrats already have made it clear they oppose tying the two issues together, and don't appear likely to budge. It's easy to see why. These kinds of proposals are vehemently disliked by labor organizations and trial lawyers two groups that have helped the Democrats retain control of the House through campaign contributions. But the proposals are favored by the medical community and business organizations groups that support Republicans like Philip. With the House and Senate majority parties eager to stay loyal to their friends, there is a deadlock when it comes to river- boat gambling in Chicago, or any other new locations, for that matter. To keep the issue floating, so to speak, the House committee that deals with civil law conducted hearings on riverboat gambling proposals, even as their chances of approval were dwindling. Representatives from cities hoping to eventually snare a license if the legislature expands the number available made their cases. Opponents of expanded gambling, like the state's horse-racing industry, put in their two cents as well. And groups like the Illinois Chamber of Commerce also appeared before the committee, explaining their support of tying business reforms to casinos. But these appearances have largely been written off as "dog and pony shows," serving little purpose except to allow the House Democrats running the committee to stress their support of expanded gaming in Illinois. With Indiana having approved floating casinos recently, and Iowa eliminating betting limits on boats there, Illinois supporters are eager to see the state get additional riverboats running as soon as possible. Judging from the gulf that exists between the two legislative chambers, though, these supporters are going to have to do either a lot of compromising, or a lot of cooling their heels.
Next month in Illinois Issues
Crime in Illinois:
Boot camps:
July 1994/Illinois Issues/35
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