The following handout from Governor Pat Quinn’s legislative lobbying operation has been distributed by the Illinois Church Action on Alcohol and Addiction Problems.

OPPOSE HB 996

(Proposed Charitable Games Act Amendments)

Would undermine the original intent of the Charitable Games Act to allow charities to conduct modest gaming events as a fundraising activity.

Would allow charities to conduct high stakes gambling:

• The bill would allow the bet size to double for many games, from $10 to $20, and would allow the cash winnings to double as well, from $250 to $500. The bill would also allow unlimited non cash prizes.
• For non house backed games like Texas Hold ’em, the bill would allow unlimited amounts to be wagered.

Would allow charities to operate casino-like environments:

The bill would allow video gaming terminals to be operated at the same time a charitable games event is conducted. Current law prohibits simultaneous operation of slot machines and similar devices for this very reason.

Would allow more charitable gaming events in the facilities that host such events, increasing the burden on the neighborhoods where these facilities are located.

• Would change the formula for the amount to be paid to the State by the charity from the event receipts:  rather than 3% of the gross proceeds, the amount would be 5% of the net proceeds could make it more difficult to ascertain whether the correct amount was remitted.

Would allow charities to compete more directly with other forms of legalized gambling:

• The sum total of the changes made by the bill would enable charities to conduct gaming on a level that legitimately rivals
  other gaming interests, such as riverboats.
  More events with higher betting levels and higher value winnings (cash and non-cash) would increase the challenges of policing these events and enforcing the limitations.

Look at the phone call that McHenry’s John O’Neill got from a gambling group.

He couldn’t figure out whether it was a pro-gambling organization or one in favor hiding under a name that might appeal to be anti-gambling.

Share what you think the objective of the group is.

John O’Neill

“I received a phone call from the Coalition for Responsible Gaming Expansion.”The caller immediately stated, ‘Recently Governor Quinn vetoed a bill to expand gaming in the state of Illinois. Do you agree with his veto to benefit the rich casino owners who already have gaming licenses?’

“I asked who she was and she stated, ‘OK sir, we are the Coalition for Responsible Gaming Expansion.’

“I asked when they are.

“She said, ‘OK sir, we have a website, would you like the address?’ http://www.responsiblegamingcoalition.org/

“I went to the website looking for info on who made up the Coalition but I couldn’t find any real info.

“I filled-out their ‘contact us’ form asking the following, ‘Your site states, “The Coalition for Responsible Gaming Expansion” is a broad group of concerned citizens, community leaders and business groups…”

“Please name some of the Concerned Citizens. Who are the Community Leaders involved with your organization? Please let me know which Business Groups are affiliated with the Coalition for Responsible Gaming Expansion.”

“Maybe if we all fill-out their forms we may find out who exactly are involved with The Coalition for Responsible Gaming Expansion.

“Just a thought.

“Thank you,
“John O’Neill”

= = = = =
The Illinois
Church Action on Alcohol and Addictive Problems tell me, “The Illinois Casino Gaming Association is part of this group.”

A press release from The Task Force to Oppose Casino Gambling for Chicago:

Task Force Applauds Governor Quinn’s Veto of SB1849

The Task Force to Oppose Gambling for Chicago today called Governor Quinn’s  veto of SB1849 a courageous political act. Despite pressure from Mayor Emanuel and others to bring a casinos to Chicago and four other areas, he kept his word to veto the bill.

Doug Dobmeyer, Spokesperson for the Task Force to Oppose Gambling for Chicago said, “The proponents, many not even living in the city want to bleed the city dry. Chicago will dodge a bullet that would have changed the character of Chicago forever.”

The Task Force to Oppose Casino Gambling for Chicago consists of business, civic organizations and religious leaders. The group continues to be in formation.

= = = = =

Locally State Senator Pam Althoff and Dan Duffy voted against the bill.  State Rep. Kent Gaffney voted “Yes,” while State Reps. Jack Franks and Mike Tryon voted “No.”

With slot machine salesmen and liquor licensees urging the Fox River Grove Village Board to legalize what proponents like to call “video poker,” the Board complied on a 6-0 vote.

Frank Gumma, owner, Ideal Gaming, Inc., East Dundee, made the successful pitch.

He characterized the proposal as “casual type gambling.”

What kind of gambling?

“Blackjack, poker and line games like slot machines,” Gumma replied.

He touted the regulation of the Illinois Gaming Board as “the most difficult gaming board in the whole country.”

He said Fox River Grove should approve video gambling in order to attract new restaurants, which would come to town because neighboring towns, such as Cary and Barrington, have not done so.  $30-35,000 more in income his competitor slot machine supplier Chris estimated.

“The nearest is Port Barrington,” he observed.

Gumma pointed out that Illinois was the seventh state “to go legal.”

One Trustee asked a prescient question, considering that coin-operated machines overseen by the Syndicate were run out of Fox River Grove for decades:

“How are we going to be sure there won’t be any criminal element involved in this?”

“They (the State Gaming Board) have done their due diligence and then some,” competitor Chris Hersh (sp?), sitting in the front row next to bar owners, added.

Trustee Michael Schiestel asked if the salesman had an studies on negative social impact.

Commenting on the possibility, Gumma replied, “I’d like to think not.”

No one was in the audience to provide a rebuttal to any of the proponents’ arguments.

One of Schiestel’s seatmates, Suzanne Blohm asked if “we can opt out at a future time.”

Trustee Michael Ireland pointed out that it was an “annual permitted use.”

Village Attorney John Donahue did not contradict Ireland.

When asked their opinions, the tavern and restaurant owners were uniformly in favor of approval of the extra stream of revenue.

“We’re just bringing in another vendor,” one said.

After the salesman observed that the average person will take home 92% of what he or she bet, Steve Knar pointed out that “the average person will end up losing a lot more” compared to an experienced player.

“Don’t misrepresent it to them or to us.”

“I don’t see this being any kind of problem,” the owner of Deadman’s Pub said.

He told of people coming in when his bar was empty, ordering a beer and leaving.

“This will entertain him for a couple of minutes.  He’ll play it casually. ”

“We need to help our businesses,” Knar said observing that people would go to Cary or Barrington, if they said, “Yes,” and we said, “No.”

Schiestel followed the line of argument that “if money is spent on a machine, it won’t be spent somewhere else” like “groceries.”

“I think it would help our businesses attract more people,” Jerry Menzel countered.

Schiestel asked the median income of slot machine players.

Chris said he didn’t have that information.

Menzel asked if the house didn’t “always win.”

“Of course,”Gumma replied forthrightly.

Menzel wondered if the proposal wasn’t “a recreational sport.”

“Yes,” Gumma said.

He then told of a trip he took to West Virginia to check out how the industry operates there.

Talking to two men watching sports at the bar, he learned that both of their wives were at the machines elsewhere in the establishment.

Village President Robert Nunmaker then entered the conversation.

“It’s not about the money,” he said, referring to the Village’s 5% cut of the money gambled.

“It’s an issue of supporting our businesses and doing what’s right for our residents.”

“I don’t think we’re in the business to dictate or allow how our residents enjoy themselves,” Knar added.

“I’m not particularly fond of social engineering,” Menzel agreed.

Although I didn’t get her words, Trustee Joanna Colletti expressed a similar opinion.

With the Mayor not voting, the proposal to bring back legalized open gambling in Fox River Grove passed 6-0.

Those businesses in McHenry County that want to have slot machines (video poker to those who wish to make this form of gambling sound more benign) are listed below:

Algonquin

• Creekside Tap
• Don Marcos Mexican Restaurant
• Main Street Billiards Cafe
• Nero’s Pizza and Pub
• The Riverview Restaurant

Fox River Grove

• The Dead End Bar & Grill

Harvard

• Cool Music Stop
• Hub Lounge
• Front Street Tap
• McGarry’s Bowl
• South Side
• Stingerz Bar & Grill

Huntley

• Huntley Legion Home Inc.

Johnsburg

• Duffy’s Palace Bowl
• McHenry Lodge Loyal Order of Moose
• Oak Park Lounge
• Sunnyside Tavern

Lake in the Hills

• Moretti’s Pizza

Marengo

• Harley D’Z
• King’s Court Bar and Grill
• Miss Kitty’s Saloon
• Northside Tap
• Water’s Edge Golf Club Inc.

McHenry

• After The Fox
• Corkscrew Pointe
• Firewood Restaurant
• Main Street Station
• Nicolino’s Trackside
• Town Club
• Twisted Moose
• VFW Post 4600
• Vickie’s Place

Port Barrington

• Hermann’s Rest A While

Richmond

• Duffy’s Palace Bowl
• Red’s Steak and BBQ

Woodstock

• 8 LANES A WEEK INC.
• Wayne’s Lanes

An email from Mike Tryon about the next-to-the-last week in Springfield:

Key legislation was debated and voted on last week in the General Assembly. Here is an update of some of the more noteworthy items:

Bill to Curb use of Special Prosecutors Heads to Governor

After receiving unanimous support in the Illinois House in March, legislation that would put strict guidelines in place for judges who wish to appoint special prosecutors to investigate elected officials gained unanimous Senate support last week.

I was a sponsor of this bill.

House Bill 4797 was filed in response to the excessive bills associated with an investigation of McHenry County States Attorney Lou Bianchi, who was eventually acquitted on all charges.

To date, the taxpayers of McHenry County have had to pay more than $525,000 in special prosecutor costs.

According to the bill, before a judge can appoint a special prosecutor, he/she must first exhaust all efforts to find a state’s attorney from

• another county or
• the Illinois Attorney General to do the work.

If it is determined that a special prosecutor must be hired, the bill includes language that gives county boards a voice in discussions regarding costs and the right to see itemized bills.

House Approves Massive Medicaid Reforms

Historic Medicaid reforms – a key component to fixing the State’s budget crisis, were also approved last week.

While difficult, I supported the reforms.

Without meaningful Medicaid reforms, Illinois’ backlog of unpaid bills would grow to approximately $21 billion by 2017, a level of spending that is simply unsustainable.

The General Assembly’s action to cut nearly $1.6 billion from the State’s $11 billion Medicaid program will go far in helping get Illinois back on solid fiscal ground.

With passage of Senate Bill 2840, an estimated 300,000 individuals are expected to be removed from Illinois’ Medicaid rolls because they

• do not meet income eligibility guidelines,
• are not Illinois residents,
• have died, or
• have aged-out of the All Kids program.

This eligibility verification alone will save taxpayers $350 million.

The bill also provides for a moderate rate reduction for hospitals of 3.5% and exempts Critical Access and Safety Net Hospitals from the reduction.

In addition, Senate Bill 2840 will do the following:

1. Roll back the Blagojevich expansion of Family Care by reducing the eligibility limit for parents to $30,000 for a family of four
2. Impose a $10 co-pay for emergency room visits
3. Require a $3.60 co-pay on all services and a $2 co-pay for generic medications
4. Limit prescription coverage to four prescriptions per month without doctor certification of need or specialty drug/condition exception
5. Eliminate funding for adult chiropractic services

Shortly after the House approval of SB 2840, the Senate also approved the bill. It awaits final action by the Governor.  [For who voted how, see here.  Democrat Jack Franks did not support the bill.]

Cigarette Tax Approved

Last week the House also voted to increase the cigarette tax in Illinois. Under current law, the State charges a tax on cigarettes that is equivalent to 98 cents per pack of 20.

Senate Bill 2194 would raise the cigarette tax to $1.98 per pack.

The additional revenue raised by this tax, an estimated $350 million per year, would garner a federal match, bringing in a total of $700 million for the State’s financially stretched Medicaid program.

SB 2194 also contains language intended to create a financial incentive for Illinois hospitals and hospital-affiliated health care facilities to provide charity health care to low-income and underserved Illinois residents.

SB 2194 was approved by the House by a vote of 60-52-0 and awaits action in the Senate.

I voted against this bill because I can not and will not support any additional taxes on the people of Illinois.

The key to getting Illinois’ finances in order involves making difficult decisions; not simply creating more revenue sources.

Gambling Expansion Approved

With many providers waiting months to be paid by the State, and painful cuts being imposed on Medicaid, many other State programs, and on the State’s own workforce, the House passed legislation this week for a new round of licenses to conduct gambling within a variety of Illinois venues.

Senate Bill 1849, as amended, would direct the State to award five additional licenses to operate riverboat casinos at specified locations throughout Illinois.

The bill would also authorize a Chicago casino and the operation of slot machines at Illinois racetracks.

SB 1849 would raise estimated gaming tax revenue of $200 million a year, with additional one-time revenues through the awarding of the additional gaming licenses.

The bill would also provide funding for many agricultural programs and the State Fairgrounds.

The House passed SB 1849 on Wednesday by a vote of 69-47-2; the bill is currently awaiting a concurrence vote in the Senate.

Governor Pat Quinn has indicated that he does not support the proposal.

I voted against the bill, and while I am not opposed to a MODEST expansion of gambling, I feel strongly that revenues from any expansion need to be earmarked, at least in part, toward a pension stabilization fund.

General Assembly Works Through the Weekend

The General Assembly worked through the weekend and is also in session today. As your Representative, I am committed to staying in Springfield as long as it takes to make the required decisions that will lead us to a balanced budget for fiscal year 2013. I will continue to update you as other important pieces of legislation move through the process.

Remember our Military Today on Memorial Day

Lastly, as you gather with friends and family to celebrate this Memorial Day, please keep in your heart the brave men and women who have served in uniform and given their lives in service to our country. All of these heroes are deserving of our utmost respect today, and every day.

Sincerely,

Michael W. Tryon
State Representative, District 64

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%.

An informal discussion was held Tuesday night by the Crystal Lake City Council about whether to allow slot machines (“video poker,” if you favor the idea) in town

After presentations by two gambling machine purveyors, City Council members expressed a 6-1 margin against turning Crystal Lake into “Potterville,” to put it in Mayor Aaron Shepley’s words.

“I’ll bet if we wanted to make Crystal Lake the mecca of adult entertainment, we could do that,” Shepley said.

“Just because we could do it doesn’t mean we should do it,” he said just before referring to “one of my favorite movies, ‘It’s a Wonderful Life.’”

Comparing the scenes of Bedford Falls and Pottersville, he said, “If you don’t look at the extreme examples, you’re not looking at the whole picture.”

Presentations were made by representatives of two slot machine companies.

One, Stepanie Drougas, from Triple 7 Illinois, based in Lake in the Hills, told of the split of profits from the money gambled:

• 30% to the state
• 35% to the liquor licensee
• 35% to the machine owners (the ones at the meeting)

As I understand it, 5 percentage points of the state’s share goes to the local city or county (if unincorporated).

The Triple 7 Illinois woman estimated that each machine would generate $1,000 for the city each year.

“Your bars and restaurants are struggling.  This will give them a little shot in the arm,” she said.

Councilwoman Ellen Brady Mueller confirmed that the machines to be installed would not be the ones “sitting in bars now.”

“[Is it] basically equivalent to Vegas as to the speed it would spin?” Councilman Ralph Dawson inquired.

Jeff Thorsen calculated that $17 million could be gambled in Crystal Lake machines with $3.4 million going to the state.

“That’s a lot of money you’re pulling out of pockets,” he said.

Yours truly spoke in opposition on behalf of  the First United Methodist Church of Crystal Lake

I pointed out that each machine could be expected to pull $20,000 out of money now spent in local businesses on goods and services.

I explained that Methodists were holding a once-every-four-year General Conference in Tampa about which stories would surface later this week.

However, I explained the fights between liberals and orthodox Methodists that would end up in the stories would not be about gambling.

I told the Council that both liberal and conservative Methodists opposed gambling.

After the two gambling machine company representatives and I spoke, Shepley said,

“Let’s call it what it is. It’s gambling, period.  This is not Crystal Point Mall and pinball.”

Then he asked his colleagues how whether or not they favored allowing the machines in Crystal Lake:

• “Not,” said Brett Hopkins forcefully.  “I’m not going to open the door now.
• “I don’t really see the need,” Carolyn Schofield said.
• “I have a problem of introducing a sin so we can tax it.  Are those the revenues I really want to chase down and create,  I’m in the ‘No’ [column].”
• “Absolutely in the ‘No’ column,” said Cathy Ferguson.  She told of working with youth at the Arlington Park Race Track.  “I can tell you horror stories about people [there].  I do not want to have any part of that.”  Ferguson later told of visiting South Dakota.  “You cannot go anywhere for breakfast without gambling.  Those towns are dead.  It’s not doing what they wanted it to.”
• Ralph Dawson also spoke in opposition.  He pointed out that the gambling machines might “very well drive customers out of establishments.”
• “It’s not my job to decide what is or isn’t a sin,” Ellen Brady Mueller said.  “Got to bars and [you]see the same people sitting on the same stools [day after day].”  She indicated that a number are probably alcoholics, but suggested, “If that’s your addiction, you’ll find a machine.

“I think I’m probably in the same boat as the majority of the Council.

“I think it’s a fair thing to compare it to the pawn shop.  Those types of organizations tend to prey on the weak or people who are down on their luck.

“Do I find it somewhat disappointing bordering on disgusting that Illinois turns to gambling?” he asked rhetorically.

He characterized selling gambling as the answer to public financing problems as “snake oil.”

In the Illinois General Assembly, State Senator Pam Althoff voted for the authorization bill, while State Senate Dan Duffy voted, “No.”  That Roll Call is here.

In the House of Representatives Mike Tryon and Mark Beaubien voted in favor of the slot machine bill.  Jack Franks opposed it.  Here’s the House Roll Call.

= = = = =
Tim Kane wrote a story on the council consideration of gambling for Crystal Lake Patch. He pointed out that I began my presentation with my “telling City Council members that the Devil will come as an attractive salesman with a tempting offer. That offer, Skinner added, would be ‘hard-core slot machines.’”

In the Northwest Herald, Brett Rowland also referenced what I said:

“‘I’m sure it would help downtown,’ he said. ‘But I’m not sure downtown needs help. You built a nice downtown district without gambling.’

“He also said that if the City Council doesn’t want pawn shops, he couldn’t understand why it would allow gambling. The council decided last month not to create an ordinance that would have allowed pawnbrokers to operate in the city.”

I’ve seen Personal PAC, the rabidly pro-abortion Political Action Committee endorse McHenry County Board candidates, but I have never seen a statewide Pro-Life group do the same.

Paul Caprio, Executive Director of Family PAC has written a letter of endorsement for District 3 McHenry County Board member Nick Provenzano’s candidacy, as you can see below:

A press release from The Task Force to Oppose Gambling for Chicago:

Gambling Expansion, Including a Chicago Casino Threatens Families in This Recession

Task Force Appeals to Quinn to Veto SB 744 House

(Chicago, IL…) The Task Force to Oppose Gambling for Chicago while opposed to a casino for Chicago is deeply concerned with the

• proposed opening of five new casinos,
• slots at the tracks and
• expanding slots at the existing ten casinos

in the middle of a major recession.

It is not known if the newest downturn in the economy is the feared “double dip” that has been speculated about, but it is clear economic times are not good.

The Illinois General Assembly passed last spring SB 744, the latest gambling expansion bill establishing casinos in

• Chicago,
• Park City (near Waukegan,
• Danville,
• Rockford and
• an undisclosed location in South Cook County).

The proposed bill will finally go to Governor Quinn for a decision on approval or not by early September. Quinn has raised concerns over the radical expansion bite to the state…

The Governor has met with some opponents and proponents of the bill. The Task Force to Oppose Gambling for Chicago sent the following points to Governor Quinn to consider:

1. The tenth license opened in mid-July in the near by suburb of Des Plaines. This casino will remove the concern Mayor Emanuel has about Chicagoans going to Indiana to gamble, thus removing tax dollars from the state. We have no position on the existing ten casinos in Illinois;
2. We are greatly concerned about how a casino will change Chicago forever, now an international business center and world class city orientated to families. Chicago as you know is vibrant, exciting and appeals to all classes of people;
3. We are also concerned about the impact on people with gambling problems. The research published in the Journal of Studies of Alcohol, November, 2001shows 4.2 percent of Latinos, 3.7 percent of African-Americans and .5 percent of Whites have gambling problems. The math shows that minorities will be carrying the burden of gambling problems. The issue of problem gamblers was mostly ignored by legislators. Gamblers with problems, which are expected to increase, were relegated to being collateral damage, aided by a paltry amount of addiction relief money;
4. Citizens of Chicago have not been asked their view on a Chicago casino through a referendum. We know you share a concern over the lack of citizen input on major public policy decisions;
5. We share as the Chicago Crime Commission and Gaming Board chair, Aaron Jaffe has articulated concerns over crime increasing. As you know in Chicago we need to be concerned about street and individual crime as well as institutional crime in a city with a reputation for such behavior; and
6. Mayor Emanuel has made several budget adjustments since taking office that allows him to do away with furlough days. This move effectively removes the city’s argument they are in dire financial straits and thus needing a casino.

Doug Dobmeyer Task Force spokesperson said,

“We ask Governor Quinn to veto SB744 to preserve the integrity of Chicago and Illinois we know it and veto SB744 as a major mistake of state public policy. If the bill moves ahead with the governor’s approval, the nature and culture of Chicago will change forever. Citizens of this city have previously indicated they do not favor a casino. Instead a coalition of non-Chicagoan legislators provided the leadership to pass the bill. Preserve your reputation as a leader for people instead of a shill for Vegas type gambling bosses.”

The Task Force to Oppose Gambling for Chicago is a coalition of religious, civic and neighborhood organizations committed to opposing casino style gambling in Chicago formed in 1992.