Help for Hamstrung Illinois Gaming Industry of Riverboat Casinos

The Illinois riverboat free casino industry competes for gambling dollars with its neighboring states much the same as a prizefighter with one hand tied behind his back. It is the only state where licenseholders are restricted on the number of gaming positions (1,200), plus the state imposes a 70 percent tax on gross revenues for the most successful operations.

Meanwhile, statistics reveal gamblers are flocking to Indiana to the east, Iowa to the west and Missouri to the southwest, where each property has unlimited gaming positions and the tax environment for casino owners is less hostile. Riverboat revenues in Illinois dropped nearly 8 percent and admissions fell 17 percent in 2004, while both statistics in neighboring states rose. Now State Rep. Robert Molaro, a Chicago Democrat, has introduced a proposal to increase the gaming positions to 3,000 with a provision that the 70 percent tax on revenues would be rolled back. Illinois Governor Rob Blagojevich is taking a look at the increase in gaming positions to help his cash-strapped state, but he has been quoted as saying he wants to make the 70 percent tax permanent.

In light of the fact Molaros proposal puts a price tag of $20,000 on each new gaming position, its unlikely that expense coupled with the 70 percent tax will have Illinois riverboat casino owners clamoring to invest in their properties. Stay tuned.