Illinois: Quinn caves; Money grab in Missouri

That pesky Illinois Legislature writes up a new, gambling-expansion bill as fast as Gov. Pat Quinn (D, left) can veto the last one. Evidently worn down by long combat with lawmakers and facing a $100 million hole in the state’s education budget, Quinn has finally waved the surrender flag. This Christmas tree is garlanded not just with slot-only “airsinos” at Midway and O’Hare airports but racinos at five tracks. Chicago will finally get a casino in the Loop, and four other municipalities are expected to cash in on the big buildup. Danville and Rockford are juiced in, leaving Waukegan, Park City, Calumet City and at least three others — likely more — wrestling for the last two spots at the table.

In a petty (and constitutionally dubious) concession to Quinn, “gambling interests” are forbidden from making campaign contributions. Regardless of whether companies are people or not, political donations are a longstanding form of free speech. One hopes this is struck down quickly. Mind you, there is nothing sacred about the protected oligopoly enjoyed by Illinois’ casinos but legislators have a fiduciary duty to consider the economic consequences of at first perforating (with slot routes) and now shredding that veil. They’re in for a serious shock when their economic projections — including $1.2 billion in front money — turn out to be horse poop, carefully placed by the horsey set, which enjoys an unwonted amount of leverage in Peoria, home to a riverboat casino, by the way.

It’s time for casino owners in Illinois to get serious about liquidating assets. In face of such an anti-business climate, what’s there to be gained by staying? Emaciated revenues, that’s what! April’s takings were 5% down from last year’s, with even the Bluhm is off Des Plaines Casino, down 1%. All Chicagoland boats felt the market’s displeasure, from a 12% plunge at Harrah’s Joliet to a 7% drop at Hollywood Aurora. Empress Joliet did “best,” down just a fraction more than 1%. Downstate, Harrah’s Metropolis is really suffering from Isle of Capri Casinos‘ move into Cape Girardeau. Metropolis fell 12% last month, making you wonder if Gary Loveman tried to offload this seemingly doomed asset before the Cape Girardeau opening (instead of fleeing the St. Louis market instead) and, if not, why not?

Across the river, in Missouri, casino owners want to get into something new and not a little disturbing, more apt for someplace like Macao. Appropriately filed under “Political Fix” is an item detailing how casinos in the Show-Me State don’t feel it is easy enough for one to spend one’s money gambling and what to facilitate it further by extending short-term loans to patrons. If you don’t pay, the casinos can suction the money right out of your bank account. Disturbing? Yes. Invasive? You betcha!

This seems to be the brainchild of Troy Stremming, enjoying a final (?) moment in the spotlight as Pinnacle Entertainment prepares to devour his own company, Ameristar Casinos, which greased lawmakers’ palms with $192,000 in campaign cash last year. (Ameristar’s owner-to-be Pinnacle is, unsurprisingly, in lockstep with Stremming.) The bill blew through the lower House overwhelmingly — and with moolah like that behind it, why not? — and is set for likely state Senate passage and the affixing of Gov. Jay Nixon‘s signature. “All this does is let them give credit to high rollers … This has nothing to do with people who live paycheck to paycheck,” naively rationalized state Rep. Bob Burns (D), who is obviously not over-generously endowed with gray matter.

Oh yeah? It’s more like hooking an IV drip of booze into an alcoholic’s arm. I’m astonished to find myself in agreement with the Missouri Baptist Convention. The latter wants some common-sense provisions added, along with a certain tightening of what the casinos could and couldn’t confiscate. Lawmakers may rationalize this “particular bill will be targeted for people coming from out of town — baseball players, rappers like Lil Wayne. After his concert, he may want to spend $30,000 [gambling] on a boat. That’s his prerogative,” but the far likelier pigeon is John Q. Public.

Update: The state Senate killed the bill in committee.