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Illinois Gaming Board tells lawmakers to consider changing terms of Chicago casino license
The Illinois Gaming Board wants lawmakers to consider changing the terms of the license for the long-proposed Chicago casino after a consultant last month said the tax rates set in state law are so high that the project could fail to attract investors.month recommend casino
But the board, which regulates 10 existing casinos and is overseeing a massive gambling expansion that includes new licenses for Chicago and five other locations, isn’t making any specific recommendations on how legislators should address the issues outlined in the consultant’s report.
The resolution approved unanimously by the five-member body Monday says that, based on the study from Las Vegas-based Union Gaming Analytics, “the board recommends that the General Assembly consider making modifications to the terms of the Chicago casino license authorized under the Illinois Gambling Act."
The state law signed by Gov. J.B. Pritzker in June required the board to respond to the report within 90 days. The board’s chairman said the agency has fulfilled its obligations and won’t be getting into specifics on how the Chicago casino legislation should be changed.
“It’s not our role,” said Chairman Charles Schmadeke, a Springfield attorney whom Pritzker appointed in late July. “Our role is merely to refer it to them for consideration, and it’s up to them to do as they deem appropriate.”
Rep. Bob Rita, a Blue Island Democrat who sponsored the legislation in the House, said he was comfortable with the board’s approach. "You don’t want them to completely lay out the terms,” Rita said.
While discussions about possible changes to the law are ongoing, it’s too soon to know whether they’ll be taken up when legislators return to Springfield in late October and mid-November for the fall-veto session, he said.
The Senate sponsor of the legislation, Vernon Hills Democrat Terry Link, did not respond to a request for comment.
The feasibility study, which was required in the law and paid for by the city, found that a “very onerous” combined state and city tax rate of roughly 72% on post-payout revenue — with 33.3% going to Chicago to pay down police and firefighter pension debt — would leave razor-thin profit margins for potential developers.

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