Illinois Gambling Squabbles May Resume with Gaming Board Re-Appointments

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Monday, September 2nd, 2013 | Written by Stephen Smith

As the political season ramps up again in Illinois after summer break, it seems likely that the hotly contested issue of casino gambling – and its regulation – will again engage the legislature and the governor.

An op-ed piece published by the Chicago Tribune last week predicts a rocky road ahead for Michael Holewinski and Aaron Jaffe, both of whom have been reconfirmed to the Illinois Gaming Board by the state’s Democratic Governor, Pat Quinn.

The catch? The two must be re-approved by the same Illinois State Senate that has for years been trying to undercut the power of that agency.

Failed legislation would have spun off oversight

Illinois has seen a number of legislative attempts to expand gambling in the state over the last few years. While they have differed in nature, size and scope, one consistent theme of the various bills and initiatives was the shifting of some – or all – of the power to regulate gambling in Illinois away from the Illinois Gaming Board.

For example, legislation introduced in early 2013 sought to not only establish a casino in Chicago that would have been under the oversight of the city government instead of the IGB, but also to introduce online gambling under the purview of the Illinois Lottery.

Both efforts ultimately failed to be put before a vote in the spring session of the Illinois legislature. The body reconvenes for a brief fall session in a few weeks before wrapping up their duties completely for the year.

With casino expansion could come online regulation

Many observers agree that casino expansion in Illinois is all but inevitable. But a question that remains open is whether or not online gambling regulation will accompany that expansion.

Illinois Senate President John Cullerton attempted to bundle the two initiatives together in a bill he put forward in February of 2013. That bill would have seen Illinois legalize a variety of online gambling while increasing the number of land-based casino licenses available for the offering.

Cullerton eventually stripped online gambling from the bill and attempted, unsuccessfully, to advance land-based expansion as a standalone issue. Cullerton’s office indicated that Cullerton would reintroduce online gambling – also as a standalone issue – at some point in the future, but firm plans for said reintroduction have yet to manifest.

Online gambling does have substantial support in Illinois, a state that is home to several Caesars properties. Illinois also houses the headquarters of land-based casino supplier WMS, who have a strong relationship with leading online gambling provider (and poker) 888 Poker.

Illinois does offer online sales of lottery tickets, but otherwise provides residents with no clearly legal and regulated online gambling options.

Tough issue as Governor mounts re-election campaign

Complicating the overall political climate in Illinois is the fact that statewide elections are scheduled for 2014. And sitting at the top of the ballot will be what increasingly looks to be a bitterly contested race for the Governor’s chair.

Current Governor Pat Quinn has been somewhat ambivalent on the issue of casino expansion, remaining open to the prospect in theory while repeatedly stressing the need for pension reform to take precedence over any upsizing of Illinois’ regulated gambling industry.

But as the election approaches, Quinn may find himself less able to resist the powerful forces in his party that are pushing for more regulated gambling. And Quinn may also be hesitant to deny the wishes of Chicago Mayor Rahm Emmanuel, who has long sought a Chicago casino.

Emmanuel believes that casino revenue could provide a way to staunch the growing hole in the city’s budget, and may exert maximum pressure on Quinn to deliver that solution during a period when Quinn will be in undeniable need of money and allies.