All bets are on — Pritzker signs $45B capital plan, massive gambling expansion

The law opens the door to a long-sought Chicago casino and sports betting.

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Gov. J.B. Pritzker discusses his “Rebuild Illinois” capital plan Frida

Gov. J.B. Pritzker discusses his “Rebuild Illinois” capital plan Friday at the Joliet Waste Water Treatment Facility in the shadow of the Interstate 80 bridge over the Des Plaines River. Deputy Gov. Christian Mitchell is to Pritzker’s right, and Lt. Gov. Juliana Stratton is second from right. Pritzer called it “the most comprehensive econstruction effort in this state’s history.”

Mitchell Armentrout/Sun-Times

New schools, roads and bridges. A massive casino in Chicago, and an array of new gambling options, including sports betting. 

And a slew of new taxes. 

They’re all part of the $45 billion capital plan signed into law by Gov. J.B. Pritzker on Friday in Springfield, as part of his statewide tour continuing through Monday to tout the new spending package that marks the latest in a legislative winning streak to open the Chicago Democrat’s tenure. 

Branding it “Rebuild Illinois,” Pritzker called the capital plan “the most comprehensive reconstruction effort in this state’s history.”

“Together we passed the largest, most robust capital plan in this state’s history,” Pritzker said. “We’re investing $45 billion over 6 years to fix what’s broken and repair what’s needed.”

Among other categories, the plan sets aside $33.2 billion for transportation projects, $3.5 billion for education projects, $4.3 billion for state facilities and $1.2 billion for environmental projects. The governor’s office says it will create 540,000 jobs.

“This isn’t just an infrastructure plan,” Pritzker said during an afternoon stop in Joliet touting the package. “It’s a jobs plan, for job creation across our state, the likes of which we haven’t seen in Illinois for a very long time. ... This really is about increasing economic growth in this state, giving people more economic opportunity.” 

The plan consists of four hefty measures passed during the overtime spring legislative session that provide for the massive gambling expansion statewide while raising the gas tax by 19 cents, jacking up the price of cigarettes by $1; bumping the price of electric vehicle registration by $250 and by $50 for all other vehicles; and slapping a 15% tax on e-cigarettes. 

It’s the state’s first major capital plan since 2009 when former Gov. Pat Quinn signed the $31 billion Illinois Jobs Now! Act, which legalized video gambling and paved the way for the more than 30,000 video gaming terminals now sprinkled across nearly 6,800 establishments the state.

Gov. J.B. Pritzker poses with Illinois Department of Transportation workers near the Joliet Waste Water Treatment Facility.

Gov. J.B. Pritzker poses with Illinois Department of Transportation workers near the Joliet Waste Water Treatment Facility after touting his $45 billion capital plan signed on Friday.

Mitchell Armentrout/Sun-Times

That number of video gambling options is now poised to shoot up, along with just about all other forms of wagering.

Key among those is approval for the Chicago casino — a potential cash cow that previously had long eluded mayors and state lawmakers — in addition to five other new casinos in Waukegan, Rockford, Danville, Downstate Williamson County and an as yet unchosen south suburban Cook County municipality. 

The Chicago casino would be allowed to have up to 4,000 gambling positions — three times more than any of the state’s 10 existing casinos, most of which will see their maximum number of positions jump from 1,200 to 2,000. 

The money from the proposed Chicago casino would be split in thirds among the city, state and the private owner, with the city’s cut earmarked for police and fire pensions.

“We’re responsibly expanding gaming at the request of cities that want to make sure that they have the resources to pay for police and firefighter pensions, and to fund vital services,” Pritzker said. 

Supporters project the state’s cut of the gaming revenue to top $2 billion in one-time licensing fees before eventually netting the state more than $400 million per year when fully implemented. That money will go toward “vertical” projects, including buildings such as schools and recreational facilities. The gas tax and vehicle registration fee hikes fund “horizontal” projects such as roads, bridges and mass transit. 

The legislation opens the door to video gambling machines at larger truck stops, and to slot machines at O’Hare and Midway airports. And after a feud between billionaire Rivers casino executive Neil Bluhm and online fantasy sports-betting companies DraftKings and FanDuel, it also introduces legal sports wagering to Illinois. 

Casinos and horse racing tracks — which now will be able to offer slot machines and other games of chance — will be able to apply for the $10 million sports betting licenses and begin laying odds as soon as they’re approved by the Illinois Gaming Board, which regulates all state gambling. Pritzker has yet to name anyone to lead that board, following the resignation earlier this month of Springfield attorney Don Tracy, who was appointed Gaming Board chair by former Gov. Bruce Rauner.

But the online sports betting giants will be stuck in the “penalty box” for the first 18 months, effectively giving the casinos a head start on the tech companies that have been taking bets online in the state over the objections of former Illinois Attorney General Lisa Madigan, who called their operations unconstitutional. 

Instead, the fantasy sports sites can partner with a casino, a race track or a sports venue — 17,000-plus capacity stadiums like Wrigley and Soldier Field — that run their own physical sports book. Those wanting to bet would have to physically enter a casino sports book to register to play and to place deposits. They then would be able to follow the action on the apps.

After 18 months, the sites would be able to run independently online, should they get one of the $20 million online licenses the state is offering.

The bill also provides for a brand new “racino” — a combination horse racing track and casino — in south suburban Cook County, making it the first new Chicago area track to open for betting on the horses since 1946.

The new track, which would be devoted to harness racing at a still undisclosed location, would be allowed to offer slot machines, table games and sports betting, like all the other racetracks in the state.

Fueling the $45 billion plan for hundreds of projects statewide are $150 million from an increase in video gaming terminal taxes; $10 million from sports wagering revenue; $500 million from upfront license fees from casino and sports betting; $30 million from a tax on parking garages and lots; $68 million from an increase on the real estate transfer tax on commercial properties; $45 million from removing the sales tax exemption on traded-in property valued above $10,000; and $156 million from an increase on the cigarette tax by $1 per pack.

Conservative opponents slammed the new plan. 

”Today is a bad day for Illinois citizens,” said state Rep. David McSweeney, R-Barrington Hills. “Doubling the gas tax and increasing vehicle registration fees will hurt Illinois low income and middle income families and kill jobs that have been created by small businesses. Republicans ‘leaders’ who supported this massive tax hike should be ashamed of themselves.”

The dark-money group Ideas Illinois, which opposes the graduated income tax plan championed by Pritzker, labeled the massive capital plan as a “blank check from taxpayers.

“Mike Madigan has run Illinois for almost 40 years and has failed to maintain Illinois’ crumbling infrastructure and now Governor Pritzker wants to cut ribbons instead of admit that in order to pay for his massive spending binge he needs a blank check from taxpayers,” Ideas Illinois chairman Greg Baise said in a statement. “Polling shows that public support for lifting the cap on taxes is falling fast because no amount of shiny objects will get taxpayers to trust politicians in Springfield.”

Pritzker has said 10,000 new jobs will spring from the gaming expansion, which passed over the objections of several church groups.

Anita Bedell, executive director of the Illinois Church Action on Alcohol and Addiction Problems, was one of the few anti-gaming voices in Springfield before she said the expansion “was rammed through during the final hours of the legislative session.

“While the governor and legislators are celebrating the signing of the bill, a large part of the funds for new buildings will come from Illinois residents losing their money in video gambling machines, betting on sports, gambling at stadiums and on cell phones and at more casinos,” Bedell said in an email. “This is a terrible way to raise money.”

The expansion also has received a lukewarm reception from the Illinois Casino Gaming Association amid concerns of further saturating a market that’s flooded with video terminals, as revenues have dwindled at most existing casinos over the last several years.

“This bill is so complicated, and there’s so much expansion that it’s going to be difficult to implement,” gaming association director Tom Swoik said. “I think the revenue projections are extremely higher than what we’re actually going to see.” 

Illinois becomes the 17th state to legalized sports betting since the U.S. Supreme Court paved the way for it last year. 

“As the state rolls out its sports betting framework, it’s critical that Illinois sports teams and other newcomers to the gaming business follow the lead of the state’s licensed gaming operators in advancing responsible gaming practices that ensure protections for consumers, bets and game integrity,” American Gaming Association CEO Bill Miller said in a statement. 

State Sen. Terry Link, D-Vernon Hills, who has pushed gaming expansion in Springfield for more than two decades, estimated new casinos could break ground within 12 to 18 months of the bill signing, with sports books potentially opening sooner. 

Pritzker demurred when asked if he likes to gamble.

“It can be a very fun thing to do,” he said with a laugh. “I want to encourage people from around the Midwest and around the world to come to Illinois to enjoy gaming and our entertainment facilities.”

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