Gambling Expansion Bill Permits Long-Sought Waukegan Casino

SPRINGFIELD, IL — Waukegan is due to receive get one of the six new casinos permitted under the gambling expansion bill sponsored by its local state senator and approved by lawmakers last weekend. The Lake County casino could have up to 2,000 gaming positions, seats at table games or slot machines, under the law, which is expected to be signed by the governor and will take immediate effect. City officials hope to build the casino on a vacant piece of land the city purchased more than 15 years ago.

Supporters of allowing increased legal wagering argued that Illinois is losing tax revenue and potential jobs to neighbors Wisconsin and Indiana by people crossing state lines to go gamble away their money in places like Milwaukee, Hammond and St. Louis. Opponents warned of increased addiction and an over-saturated market that has seen declining casino revenues since the legalization of video gambling machines in 2012.

Senate Bill 690, sponsored by Indian Hills Democrat Terry Link, designates the Lake County seat, along with Chicago, Rockford —one of several south Cook County townships — the city of Danville near the Indiana border in central Illinois and downstate Williamson County near the Kentucky and Missouri borders as one of the locations where new casinos can be permitted. The Senate voted 46-10 to approve the bill Sunday.

"This is a job creation bill that will help people in every corner of Illinois," Link said in a statement after the bill's passage. "I have worked on this for years because it is vitally important for Illinois and the people in our region. I am grateful to my colleagues for helping get this done."

Link estimated the bill would generate more than $12 billion over the next six years, according to Capitol News Illinois. He said it would add billions of dollars of construction and thousands of new jobs. The bill provides for tax revenue from the expansion to go toward capital projects, education assistance, school infrastructure and county criminal justice systems.

Speaking on the Senate floor, Link said it had was an emotional moment for him after spending two decades trying to pass expand gambling in Illinois.

"If we were bringing in six new manufacturers to town, everybody would be on board," Link said, according to NPR Illinois. "Well guess what: we're putting six types of manufacturers on board. They're going to generate money for the state. They're going to generate employees. They're going to generate economic development, not only in those communities, but the state of Illinois."

The bill lays out how the tax revenue from Waukegan's "riverboat gambling" establishment would be divided. Of the 5 percent of gross gambling revenue collected by the state, 70 percent goes to the city of Waukegan, 15 percent to North Chicago, 10 percent to Park City and 5 percent to Lake County coffers.

Waukegan Mayor Sam Cunningham told an Illinois House committee last month that the city was "ready to transform" by adding a casino, according to the Lake County News-Sun. He said he was "beyond excited" the project appeared to be nearing fruition.

"Waukegan is ready to take its vibrant history shaped by Lake Michigan lakefront, our rich arts and music community, our population of 100,000 and our location as the county seat of Lake County, Illinois," Cunningham testified last month. "It is ready to add a casino to that great history."

City officials purchased 32 acres of land in 2003 with the intention of establishing a casino there, the News-Sun reported. The city paid nearly $7 million for the site and, as of a year ago, owed $12.8 million from buying the land and improving nearby infrastructure.

The Fountain Square location is just off the Interstate 94 and southwest of the intersection of Route 41, Route 43 and Route 120, at the site of the demolished Lakehurst Mall.

The bill also allows for stadiums and large venues to buy licenses for up to $20 million to offer sports betting, which states have been able to allow ever since the U.S. Supreme Court found a federal prohibition on wagering on professional and college sports violated the 10th Amendment in the case of Murphy v. National Collegiate Athletic Association.

Pritzker touted gambling expansion as a way to create jobs and help firm up the state's financial footing before taking office earlier this year. He said the bill was a "win for the whole state" that would create 10,000 new jobs in a statement after its passage.

"After the Supreme Court legalized sports betting, I promised the people of Illinois that sports wagering would be a key element of my legislative agenda, so that we are competitive with our neighboring states and can create more revenue for communities around Illinois," Pritzker said.

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