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Bill On Video Gambling Awaits Votes In Illinois House

Posted on May 25th, 2010

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A video gambling bill that has already passed the Illinois Senate has passed the House Executive Committee Monday with a 9-2 vote. It is now on its way to the full House, and if approved, will then go to Governor Pat Quinn’s desk for his signature. Video gambling has already been legalized by the state, and the bill, HB 4927, would make the earlier law more effective and enable the state to tax the games.

Earnings from taxes are estimated to generate from $250 million to $500 million to be used for the state’s program to improve and construct roads and schools and other infrastructure projects. But the state’s gambling regulators are opposed to the bill saying it would undermine the gaming regulators’ authority because the measure would grant amnesty to video poker machine operators who have been illegally running the machines in bars for years.

Aaron Jaffe, chairman of the Illinois Gaming Board said passing the legislation would be “a disaster.” He said the legislators in Springfield are listening to the wrong people, referring to Joe Berrios, the Democratic nominee for Cook County assessor, and the other lobbyists pushing for the passing of the bill. Berrios and other lobbyists acting on behalf of the Illinois Coin Machine Operators also were responsible for convincing Illinois lawmakers to legalize the gambling machines last year.

The bill authorizes the Gaming Board to deny a person a license to operate the machines if that person has been convicted of illegal gambling operations. Before the state allowed the machines last year, gambling on the machines was illegal, but only a few people were actually charged and found guilty of the offense. Several of them could own up to much lighter offenses that are not covered by gambling laws. Also, many bar owners are only made to pay an amount by the liquor control commission for breaking the law.

Mark Ostrowski, Administrator of the state Gaming Board said the bill, if passed, would make it difficult for regulators to deny licenses based on an applicant’s record of illegal gambling operation because only a few people have been convicted. There are very, very, very, very few convictions on these things,” Jaffe said. “The law-enforcement agencies have not enforced this, and we are, pursuant to statute, charged to make sure gaming is free of forces that are not very savory.”

The Gaming Board, under Jaffe’s leadership, took on a new ruling that would need applicants to declare under oath that they have never illegally operated the machines. But state Rep. Lou Lang, D-Skokie, the bill’s House sponsor said that Jaffe has gone too far with the rule. Lang said, “It’s not the Gaming Board’s province to go back in time and find out who those people are, especially the way they drafted the rule. So because the rule was vague, we decided there needed to be some definition in the rule. Otherwise, who would go out and invest in these machines?”

Forrest Claypool, an Independent candidate for Cook County assessor also criticized Joseph Berrios’ lobbying efforts for the passing of the measure which he said would inhibit the Gaming Board to fully enforce licensing rules against convicted felons and their associates. Claypool made an appeal to the members of the Illinois House not to approve the measure that would effectively limit the power of the Gaming Board to reject applications for video gambling licenses.

He said the regulators need all the support for them to be able to eliminate the influence of organized crime on an activity that has been allowed to operate in the state. Berrios did not issue a comment, but said he will stop all his lobbying activities once elected assessor.