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New casino may not be all roses |
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New casino may not be all roses
Gambling experts caution a new casino in Ford Heights may not be "all roses" as some lawmakers presume, pointing to a listless economy that has some Indiana casinos in bankruptcy and others in Illinois bringing in less money.
Illinois legislators are weighing a plan to add four casinos, including one in Ford Heights, as well as allow thousands of new slot machines at racetracks and expand the number of gambling terminals at existing casinos.
"You have to realize it's not all roses. We had a lot of businesses shut down, restaurants especially, because they could not compete with the casino," said Thomas McDermott, mayor of Hammond, Ind., which is home to the expanded Horseshoe Casino, the largest riverboat casino east of the Mississippi River. "It definitely affects business negatively."
State Sen. Terry Link (D-Waukegan), the measure's sponsor, says additional gambling could generate an extra $1 billion per year for the cash-strapped state, which faces a $13 billion budget deficit. The sites selected for the four casinos - Chicago, Ford Heights, downstate Danville and north suburban Park City - were chosen in part because they lie in economically depressed areas, said Link, chairman of the Senate Gaming Committee.
Ford Heights' average annual income is $20,000 and more than half of its residents live below the poverty level. But experts caution the weak economy, coupled with lenders reluctant to loan out cash, could quell any new casino plans.
"(Illinois' lawmakers) are about 15 years too late," said Ed Feigenbaum, a gambling industry expert and editor of Indiana Gaming Insight, a bi-weekly newsletter. "Anytime you're seriously looking at this, in an economic time like this, it just strains the bounds of credulity."
Indeed, gambling revenue is down in Illinois - mainly because of a drop at riverboat casinos.
A new report from the Legislature's Commission on Government Forecasting and Accountability found Illinois' share of overall gambling revenue was at a 10-year low because of a sagging economy, a smoking ban on riverboat casinos and competition from other states. Illinois' total gambling revenue - from horse racing, the lottery and riverboat casinos combined - was down nearly $50 million, or 4.5 percent, in the fiscal year that ended June 30, according to the bi-partisan panel's findings.
Local governments' share of gambling revenue also has dropped.
Harrah's Casino in Joliet turned over about $2 million less to local governments in the last fiscal year than it did the previous year, the report said. Empress Casino in Joliet was up, but a fire had temporarily closed it the year before.
Indiana's nearby casinos aren't performing well either.
The Gary casinos, adjacent Majestic Star I and II, are in bankruptcy, Feigenbaum said, and two horse racetracks with gambling terminals near Indianapolis are struggling to remain afloat.
"The real strong wave of casino gaming in terms of being able to help sustain a community and provide a steady diet of good-paying jobs has apparently passed," Feigenbaum said. |
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