Story posted Friday, July 17, 2009
Lang: Legalized Gambling Machines Will Pay Off
By TOM ROBB Journal & Topics Reporter
When the Illinois Legislature passed its capital infrastructure spending bill that Gov. Pat Quinn signed into law earlier this week, the plan to pay for it was by legalizing payouts of video gaming machines at local restaurants, taverns and fraternal halls.
State Rep. Lou Lang (D-16th) of Skokie, who sits on the House Gaming Committee, was a sponsor of the measure legalizing payouts from the machines. He has been a long time supporter of legalizing payouts.
Lang said the state conservatively estimated earning $375 million from the machines. Local governments could also see millions in tax revenue.
A long time advocate of land-based casinos, Lang helped push the plan that will see a new casino built in Des Plaines in the next two years. He continues to support a casino in Chicago as well.
Acknowledging concerns about wide spread video gaming Lang said, "While you can argue this (video gaming machines) is a dangerous and addictive form of gaming, there are 65,000 of these machines licensed only for amusement throughout the state now. Many are (illegally) paying out."
Legalized video gaming machines would be allowed in liquor serving establishments such as restaurants, taverns and fraternal lodges like Elks and VFW halls under the new law.
The Illinois Gaming Board has 60 days to craft regulations governing the licensing of the new machines. Lang said he is not sure the gaming board can accomplish that task in time. "Some might call it a bureaucratic nightmare," said Lang.
But Lang said legalization is still preferable. "We cannot hire enough police to do enforcement so it's better to legalize it. All other comments are just red herrings so let's get out of it what we can," said Lang.
Lang said by legalizing and regulating gaming payoffs the total number of machines would be reduced across the state from 65,000 to 40,000 and he added establishments violating laws regarding the machines would lose their liquor licenses.
Lang admitted general enforcement by the Illinois Gaming Board might be difficult with so many potential licenses being granted.
Under the new law, net revenues from the machines would be taxed at a rate of 30% with 25% going to the state and 5% going to the local municipality.
The law provides local municipalities the ability to ban the legal gaming machines from their communities through either a vote of the city council or village board or through a referendum vote of the people.
Area mayors Journal & Topics Newspapers reporters spoke with have a wide array of reactions with some embracing the machines, some opposed and some taking a wait and see approach.
Lang said the level of scrutiny would not need to be as great with video machines as it is with large casinos because in those cases the operator has a monopoly over a much larger cash operation. He added, "The bad apples will get weeded out."
Licensed machines will be networked to a central computer hub in Springfield the same way Illinois Lottery machines are now, Lang said.
Lang maintains a land-based casino is needed in Chicago saying it would create many jobs and would act as an economic stimulus for the region.
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