20% Increase in Gambling Yields Only 2.1% More for State Aid to Education, Des Plaines Casino Cannibalizes Nearby Illinois and Indiana Competitors
The money lost at casinos in Illinois has increase over 20%, but money going to State Aid to Education is up only 2.1%.
One reason is that Illinois has a graduated income tax based on calendar years.
Because Des Plaines opened in July, it’s taxable income is based on six months revenue.
The other Chicago area casinos took huge hits on their gambling revenue, so their tax rates went down.
Besides that, the General Assembly sucked money off the top from what otherwise could have gone to education:
- 15% for the Horse Racing Equity Fund
- 2% as a subsidy to Cook County government for law enforcement
- 2% to Chicago State University (thank then-Senate President Emil Jones for that atrocity)
Gambling losses went up 33% in the first nine months of Fiscal Year 2012, according to the Illinois Commission on Government Forecasting and Accountability.
But the four exiting casinos saw losers bet 12% less. Elgin, the closest to Des Plaines, had betters lose 19% less. That amounted to $41 million.
Indiana casinos saw betters lose 4% less or almost $40 million.
Undoubtedly because of the closeness of Des Plaines to Chicago, overall casino gambling loses were up 10.7%.