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Showing posts with label Illinois. Show all posts
Showing posts with label Illinois. Show all posts

Friday, August 12, 2016

Illinois casino revenue on the decline due to oversaturation



Illinois casino revenue on the decline due to oversaturation


Written By: , Illinois News Network August 11, 2016
ILLINOIS NEWS NETWORK
The latest report on the three casinos in the Quad Cities is quite telling for all of Illinois.
July’s gaming reports from Iowa and Illinois show two different trends in the two states. Iowa, as a state, is seeing more people gambling more dollars. Illinois is not.
The Jumers casino on the Illinois side of the river bucked the state’s trend last month, it did see more people. But numbers show those gamblers played table games.
Tom Swoik, director of the Illinois Casino Gaming Association, said that’s because people can play the slots in bars, social clubs, and even truck stops across the state.
“We’ve got more licensed gaming establishments in Illinois than in the entire state of Nevada,” Swoik noted.
Swoik said just about anyone in Illinois who wants to gamble can.
“Statewide, I believe the gambling market is saturated,” Swoik said video gaming is essentially as large as 20 extra casinos in Illinois. “We’ve got nearly 24,000 video gaming machines out there. We’re limited to 1,200 gaming positions per casino.”
Swoik thinks the state will see the amount of money in play level off.
Statewide casino revenue in Illinois has been sliding down since 2013.



Monday, August 8, 2016

Illinois Casinos Lose $51 Million Settlement Stemming From Former Governor Rod Blagojevich Case




Illinois Casinos Lose $51 Million Settlement Stemming From Former Governor Rod Blagojevich Case

Illinois casinos corruption Governor Rod Blagojevich
The fallout from former Illinois Governor Rod Blagojevich’s corruption continues as $51 million in awarded damages to Illinois casinos was rescinded this week. (Image: AP photo/politico.com)
Illinois casinos lost $51 million this week, but not at the hands of a hot streak from gamblers. Instead, the Seventh Circuit Court of Appeals in Chicago is responsible for the mammoth take.
It all stems from one of Illinois’ most infamous politicians, former Governor Rod Blagojevich (D). The impeached politician convicted of soliciting bribes to fulfill Barack Obama’s US Senate seat following his election to the presidency sent Blagojevich behind bars for 14 years.
Affectionately known as “Blago,” the 40th Governor of Illinois’ corruption wasn’t isolated to naming Obama’s replacement.
During Blagojevich’s arrest in 2008, it was revealed that horse racetrack executive John Johnston had bribed the governor with a $100,000 campaign contribution. In exchange, Blago signed a bill that many believed to be an excessive tax on the state’s leading casinos.
The legislation placed a three percent tax on adjusted gross revenues at Illinois’ four largest riverboat casinos. The proceeds were directed to the Horse Racing Equity Trust Fund.
At the time, that meant an estimated $36 million a year in new revenue for the horsemen.
“These bills will help protect the jobs of thousands of hardworking people who depend on the horse racing industry for their livelihood,” the governor said after signing the bill. “They will also create a more level playing field that will allow the horse racing industry to remain competitive.”
Johnston was never forced to follow through with his bribe as Blagojevich was arrested before the contribution was paid. However, the new law remained.

Judge Overturns Verdict

Casinos impacted by the bribe sued Johnston’s Balmoral Racing Club and Maywood Park Trotting Association, and also brought legal action against Blagojevich. A federal jury awarded the casinos $25.9 million in damages two years ago.
The prosecution successfully argued that Johnston and Blagojevich’s actions constituted a conspiracy to engage in a pattern of racketeering. Under the Racketeer Influenced and Corrupt Organizations Act (RICO) passed in 1970, criminal and civil damages are subject to treble, or tripled rewards of actual compensatory damages.
The $25.9 million ballooned to $77.8 million. This week the Chicago appeals court reversed the ruling.
“The jury did not have legally sufficient evidence to support a verdict finding a conspiracy to engage in a ‘pattern’ of racketeering activity, as required for liability on a RICO conspiracy theory,” the court opined.
“A one-time bribe to a corrupt public official is criminal and wrong, but without more, it is not enough to prove a pattern of racketeering activity.”
The casinos haven’t publicly responded to this week’s verdict. The state currently has 10 riverboat casinos.

Blago’s Appeal

It’s been four years since Blagojevich has been a free man, but that could soon change. Last year the same Seventh Court of Appeals vacated five of his 18 criminal convictions.
The vacated counts included two counts of wire fraud, extortion conspiracy, attempted extortion, and bribery conspiracy. His resentencing is schedule for August 9.
Also worth mentioning is that Blagojevich is reportedly in a music band. Known for breaking into his Elvis Presley impression during his political career, apparently the shtick has been well received in prison.
According to a former inmate who spoke with a local FOX affiliate in Chicago, Blagojevich’s group call themselves the Jailhouse Rockers.



Wednesday, September 2, 2015

Gambling Embezzlement: Lake Station mayor's corruption trial starts






Lake Station mayor's corruption trial starts



The federal corruption trial of Lake Station Mayor Keith Soderquist, shown in April during a city council meeting, got started Tuesday in Hammond. (Kyle Telechan / Post-Tribune)

By Teresa Auch Schultz

Post-Tribune

Federal attorneys say Lake Station mayor, wife used donated money for gambling Lake Station Mayor Keith Soderquist's criminal trial finally kicked off Tuesday afternoon with attorneys describing two versions of the politician: in one, a mayor who defrauded others to keep gambling, and in the second, a mayor so dedicated to the city he lost his job.

Soderquist and his wife, Deborah Soderquist, are charged with one count of conspiring to commit wire fraud, seven counts of wire fraud and three counts of filing a false income tax return.

"Soderquist campaign reports pulled by FBI"

Assistant U.S. Attorney Josh Kolar argued during the government's opening statement that the couple used money donated to his campaign election committee and the Lake Station Food Pantry to pay for trips to local casinos over a period of several years.
"This didn't happen once, this didn't happen twice," Kolar said. "It happened more than 50 times."


Kolar laid out the government's case, including evidence that the Soderquists would withdraw money from accounts connected to the food pantry or the campaign fund within 24 hours of trips they would take to the casinos. The Soderquists oversaw both accounts because they were the chairman and secretary of the campaign fund, and Soderquist had made his wife assistant director of the food pantry when he became mayor. He noted that the food pantry didn't have an ATM card until the Soderquists took over and that they never recorded the withdrawals from the campaign fund on forms they were required to fill out.

Kolar also described the couple's financial difficulties, which started in 2009 after Soderquist lost his private, full-time job. They withdrew more than $95,000 over three years from their retirement accounts, he said, and racked up credit card debt. At the same time, they kept gambling, losing as much as $45,000 a year.

"They kept gambling, and they paid for that from donated money," Kolar said.

Defense attorney Scott King argued the government's case isn't supported by the evidence.

"It's going to show Deborah and Keith Soderquist did not conspire to commit any act remotely close to fraud," he said.

King admitted the Soderquists did get into financial trouble because the mayor spent so much time trying to help the city recover from the 2008 floods that there were complaints about not doing all his duties at his private job.

He was eventually fired, and in order to shore up their finances, the couple took steps to cut their costs, including taking money from their retirement accounts, King said. They also wanted to renegotiate their credit card debt, but in order to do so, King said, they had to first go into default.

They also finally decided to seek reimbursements from the pantry and his campaign for expenses they had originally paid for out of their pocket, the attorney said.

"Every penny that the government is going to wave in front of our faces is reimbursement for money spent out of their own pockets," King said, adding that they had receipts to support this.

He urged the jury to not judge the couple for gambling, noting that these trips were just a relaxing evening for the Soderquists to enjoy a free dinner and then play some slots. He also questioned the government on how much the couple had actually lost, although he did not say how much that amount was.

The opening statements got underway at 4 p.m. at the U.S. District Court in Hammond after a full day spent selecting the jury, which includes 12 jurors and four alternates. The trial was originally set to start Monday but was canceled for the day after only a few hours when not enough potential jurors showed up to select a jury. The trial is supposed to last four to five days.


http://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-soderquist-day-two-st-0902-20150901-story.html





Sunday, May 24, 2015

More gambling will not solve budget problems







Predatory Gambling targets those who can least afford it regardless of the state.

Is there any state that has prospered from Gambling?
Even Nevada is Expanding Gambling to suck more dollars from locals.

And how about Atlantic City? High crime, local businesses destroyed....

Harrah's [now Caesars] determined that 90% of their profits originated from 10% of their patrons [see 'Winner Takes All" by Christina Binkley. Great book! or 'The Luck Business' by Professor Robert Goodman.] That's Gambling Addiction without which the Gambling Industry wouldn't survive.

The Gambling Industry is immensely profitable because it thrives on creating more Gambling Addicts. Could that be why Illinois is faring so poorly?

Has Illinois exhausted the supply of Gambling Addicts?

Sad commentary on elected leaders when Predatory Gambling is the best idea they propose!



Letter: More gambling will not solve budget problems


Posted May 23, 2015 at 1:00 PM

Gambling interests have paid for a study that overestimates revenue and jobs and fails to factor in any of the social costs — addiction, bankruptcy, crime, family problems and suicide.
Winnebago trustees recently rejected proposals for video gambling at a grocery store and bar and voted to keep the ban on video gambling. The Will County Board passed a ban to prevent any more video gambling establishments in unincorporated areas of the county.
Municipalities that approved video gambling are now trying to limit video gambling. Rockford, Springfield, Peoria and other cities have enacted ordinances requiring 50-60 percent of the revenue to come from food and drink sales at video gambling establishments. Love’s Park is capping the number of video gambling parlors, which are neighborhood casinos that target women.
On average, electronic gambling devices/slot machines take one net job away from the economy every year. Each gambling machine takes an average of $300,000 in consumer spending out of the economy, according to the U.S. International Gambling Report.
A city-owned casino for Chicago and/or a massive expansion of casino gambling, including one for Chicago, is being negotiated behind closed doors. More gambling will not solve the budget problems for the state or for Chicago, but will create more problems, costs and negatively impact tourism.
Call Gov. Bruce Rauner and your state legislators (217-782-2000) and tell them “no more gambling.”
— Anita Bedell, Illinois Church Action on Alcohol and Addiction Problems




http://www.rrstar.com/article/20150523/OPINION/150529871/14261/OPINION

Saturday, April 18, 2015

Casino cafes aren’t good for local economies







In the Spotlight: Casino cafes aren’t good for local economies

By Dave Zickar
Posted Apr. 17, 2015 at 7:35 PM
Updated Apr 17, 2015 at 7:41 PM



Corporations have quietly been opening hundreds of casino cafes in neighborhoods across the state over the past several months. Just 10 corporations are operating 185 cafes already, and they’ve announced plans to open hundreds more.
The spread of casino cafes is an unintended consequence of the Video Gaming Act that is undermining its intent and integrity. Casino cafes are not taverns or restaurants but gaming businesses. In other states where cafes metastasized, slot income was reportedly more than 90 percent of their annual business.
These cafes are a threat to the small businesses owners of bars and restaurants and those who run VFWs and American Legion Halls. We are concerned because when customers go to a casino cafe, they aren’t visiting our establishments to buy a meal or a beverage; rather, they’re putting their money into corporate slot machines that ship the revenue out of East Peoria.
This gaming entertainment is readily available at the more than 4,000 legitimate bars, restaurants, truck stops and fraternal orders licensed in the state. Casino cafes are the lowest form of hospitality business possible. They offer a minimal menu, operate out of a small storefront and have just enough staff to keep the lights on and the slots spinning, sometimes for 20 hours a day.
While East Peoria makes a nickel of every dollar earned at a cafe, that is offset by the lost economic activity at legitimate neighborhood restaurants and taverns. The economic progress casino cafes claim to generate are an illusion because their gains come at the expense of already established community-based businesses.
For many small business owners, video gaming has been a welcome source of new revenue. Left unchecked, these cafes will undermine the hospitality industry video gaming was supposed to assist. Towns like Springfield, Rockford and Loves Park have been overrun with dozens of cafes that snatched up valuable real estate. Locally, Emma’s Eatery in Peoria has siphoned over $490,000 out of town and has only been operational for a year. Emma’s is part of a corporate chain that currently has 50 locations and a total slot revenue of $83.7 million. Are these the kind of businesses we want in our town?
Local mayors need to be given the power to prevent casino cafes from swarming our communities. State Sen. Darin LaHood of Peoria has already filed a bill in Springfield (SB 1794) to give local government more power to work with business owners to create appropriate liquor license and gaming regulations.
Small businesses need to stand together against the onslaught of corporate casino cafes. We spent decades trying to legalize video gaming for our businesses, and now, just two years later, corporate interests have swept in to open pop-up casino cafes.

Dave Zickar owns the Brass Key Lounge in East Peoria.



 http://www.pjstar.com/article/20150417/OPINION/150419279/2011/OPINION#OPINION/?Start=1&_suid=1429405081898007247385016021002

Monday, October 6, 2014

Video gambling thefts coming to light






Letter: Video gambling thefts coming to light

Posted Oct. 5, 2014 @ 2:00 pm


The gambling machines have been in operation for two years, and now video gambling thefts are coming to light. The city of Springfield has the most video gambling machines in the state. Thieves have broken into six bars a total of 10 times since September, targeting ATMs or cash-redemption machines from video gambling terminals, according to the State Journal-Register.
In southern Illinois, burglars took thousands of dollars from a Knights of Columbus. That burglary was at least the third that occurred in Franklin County establishments with video gambling, reported the Southern Illinoisan.
Thieves have broken into video gambling machines at taverns in Collinsville, Godfrey, near Jerseyville and in Summerfield to steal the cash. Thieves have also broken into gambling machines in Oak Lawn and Northlake.
Local residents are losing millions of dollars in the 18,000 video gambling machines that are operating in 4,500 neighborhood establishments statewide. Making gambling more accessible and acceptable in neighborhood casinos will increase addiction, bankruptcy and crime.
Local officials should seriously consider this information when deciding whether to overturn an existing ban or issue a new liquor license to allow video gambling parlors in the community.
— Anita Bedell, executive director, Illinois Church Action on Alcohol & Addiction Problems


Read more: http://www.rrstar.com/article/20141005/Opinion/141009721#ixzz3FN1LA24j

Monday, June 23, 2014

Is gambling being spread too far?





Is gambling being spread too far?




Oak Lawn is no Las Vegas.

But something straight out of Southern Nevada recently invaded the sleepy Illinois suburb: slot machines.

I found them when I traveled home to Chicago in May and visited my father’s favorite watering hole. There in the back corner were four video slots. Though they represent a tiny fraction of the 800,000 slot machines that dot the country, their presence disturbed m e.

In front of those glowing machines sat people I knew from the neighborhood — people who rarely gambled before the government legalized slots in bars. It was disheartening to watch the wide-eyed players zone out in a boozy buzz, mindlessly tapping the “spin” button and waiting for a big win.

In one four-hour catch-up session with Pops, at least two patrons ran their winnings past $100. But most people lost, including my dad, who slipped in a $20 bill, then another, and then another before calling it quits.

Then I watched a guy in his 20s use his grandfather’s ATM card to withdraw cash to play. While his grandson played, the old-timer sat the bar, sipping his beer alone.

It’s no surprise governments have latched onto legalized gambling like leeches; it draws a ton of cash. In the 1980s, legalized gambling drew about $10 billion annually nationwide. It now draws $119 billion annually.

But experts say the proliferation of slot machines in other parts of the country could create a crushing societal problem in a short time, particularly when it comes to problem gambling.

“New problem gamblers have been created because of local governments buying into this without considering the heavy costs associated with the spread of legalized gambling,” said Sam Skolnik, a former Las Vegas Sun reporter, gambling addict and author of the book “High Stakes: The Rising Cost of America’s Gambling Addiction.” “I view that as problematic and a cause for real concern.”

My Midwestern peers once had to save up cash to travel to Las Vegas or a riverboat or an Indian casino to gamble. If they didn’t have the cash to travel? They didn’t gamble.

Now it’s as easy as walking to the local tavern. That carries costs I’m not sure most cities are ready for.

Consider that Las Vegas has more than 100,000 problem gamblers and 100 Gamblers Anonymous chapters that meet every week. And we are the gold standard when it comes to gambling and addiction.

Can other cities handle that?


http://www.vegasinc.com/business/2014/jun/22/gambling-being-spread-too-thin/

Sunday, June 8, 2014

“We call this not gridlock but 'greedlock.'



Casinos wonder if they've made a bad bet


The proliferation of video gambling in Illinois bars—underway for less than two years—already has created the equivalent of a competing casino within a 50-mile radius of Joliet's Hollywood Casino, according to General Manager Wayne Smith.

His casino, one of two in Will County, wasn't betting on another backyard competitor when it committed $90 million in 2009 for a three-restaurant pavilion and other improvements to freshen its appeal.

“We wouldn't do that now,” says Mr. Smith, after the upgrades failed to halt a decline in patronage. Last year, the casino reported adjusted gross receipts of $131 million, a little more than half of 2007's $240 million.

The gambling industry's contraction, punctuated by the June 2 shuttering of a Mississippi casino and a January closing in Atlantic City, New Jersey, is jeopardizing an easy fix politicians thought they had for economic development. Or for saving underfunded public pensions, a selling point for a proposed huge Chicago casino.

Despite the expansion of gambling options, Illinois collected 35 percent less last year ($538 million) in gambling-related revenue than it did in 2007. While the recession and slow recovery hurt performance, even net wagering at the still-growing number of video gambling terminals—some 16,000 in bars, truck stops and fraternal organizations—fell for the first time, in April from March.

“We call this not gridlock but 'greedlock.' It's a lose-lose-lose downward spiral for the state,” says John Kindt, a gambling policy critic and a professor emeritus of legal policy and business at the University of Illinois at Urbana-Champaign.

Market saturation is hardly the only headache for casino operators like Mr. Smith, who worry about their livelihood jumping to the Internet. Their bread-and-butter slot players are aging. A ban on smoking is cutting traffic. And, Mr. Smith points out, it's hard to separate millennials from their handheld devices.

'ZERO-SUM GAME'

For now, the greatest threat to casino operators is being eaten by their own kind. The proliferation of betting positions, or seats, not only creates competitors but even dulls the customer's taste for the novel.

“Gaming in the Midwest is definitely very mature,” says Alex Bumazhny, a Fitch Ratings analyst in New York. “It's basically a zero-sum game.” A study commissioned for a proposed casino in Cedar Rapids, Iowa, found that it would cannibalize existing sites for three-fourths of its business.

Two years after it opened in Des Plaines, Rivers Casino last year was the sole Illinois casino to report an increase in receipts—though just barely: up less than 1 percent, to $419 million. Its nearest competitor, the Grand Victoria Casino in Elgin, is scrambling, much as Joliet's Hollywood Casino, to improve amenities after receipts plunged by more than half since 2007.

State Rep. Louis Lang, D-Skokie, an evangelist for gambling as an economic development tool, believes there's still room for growth. The Illinois House deputy majority leader says stalled expansion plans that include a Chicago casino could boost annual gambling-related tax revenue statewide to as much as $2 billion, more than double any yearly amount so far.

“We don't count up how many McDonald's and Starbucks there are. There's no evidence we're at a saturation point,” he says, claiming Illinois is losing revenue to casinos on the Indiana lakefront.

Mr. Smith begs to differ, noting the impact on taxing bodies like the city of Joliet. The city says video gambling-related revenue in the first quarter of 2014 was $75,000, while casino-related revenue fell $470,000 from the same period last year.

“When is enough enough? In Illinois the saturation point has already passed,” Mr. Smith told an industry conference June 3 in Rosemont.

Illinois' 10 casinos have a combined 12,000 gambling positions. A city-owned casino, with as many as 10,000 gambling positions, along with a doubling of the number of video terminals and other expansion plans could boost Illinois to a nation-leading 55,000. That would put the state ahead of Nevada's current 44,000.

DIFFERENT GOAL DOWNTOWN

“Downtown Chicago is a different economic case than anywhere else,” says Kim Goluska, a Chicago architect and casino proponent for the Chicagoland Chamber of Commerce. The main goal for such a casino isn't to generate tax revenue, he argues, but to draw tourists   [WHERE IT'S NEVER HAPPENED BEFORE] to nearby restaurants, theaters and other attractions.

Video gambling is welcomed by many taverns. The Avenue Flower Shop & Wine Bar in Oak Lawn now attracts about $30,000 in monthly wagering. Downstate, though, the Champaign City Council rejected a proposal in March to permit on-site alcohol consumption—a condition for video gambling—at gas stations and convenience stores.

Thursday, April 17, 2014

Illinois: When you're too dumb to stop.....

Another Poster Child for all that is wrong with Predatory Gambling and short-sighted politicians too blinded to create sensible fiscal policies.....




How much more discretionary income can politicians suck from the poor?

Chicago casino plan draws more support at hearing


SOPHIA TAREE, Associated Press

Updated 3:14 pm, Wednesday, April 16, 2014
 
CHICAGO (AP) — A proposal for a state-owned Chicago casino won praise Wednesday from business groups and a warmer reception from a state regulatory board than past attempts to expand gambling, but the plan also drew criticism from downstate officials and the horse racing industry who said it would cheat them out of needed revenues and jobs.
 
The hearing in Chicago, which wasn't heated like public exchanges in other parts of Illinois, was the latest attempt to bolster gambling, but questions were also raised about support for the legislation in an election year where other major fiscal issues are pending. Previous bills approved by legislators were twice rejected by Gov. Pat Quinn largely over ethical concerns about corruption, and last year's bill calling for five casinos fizzled out after the Illinois Gaming Board scrutinized plans that would have allowed Chicago to have authority over a casino.
 
State Rep. Bob Rita, a Blue Island Democrat sponsoring the plans, said he wanted to gauge interest in a Chicago-only plan and give lawmakers options. Two proposals are on the table: One adds five casinos, including in Chicago, plus slots at racetracks. The other calls for a mega-casino in Chicago. In both plans, the Chicago casino would be state run, which Rita said was in response to past criticism.
 
Though neither Quinn nor Chicago Mayor Rahm Emanuel have weighed in recently, the board that regulates Illinois' 10 existing casinos highlighted the changes.
 
"There are certainly improvements," gaming board attorney Caleb Melamed told lawmakers. "This is a significantly different piece of legislation than previous years."
 
He voiced other concerns about the potential of saturating the market with other Chicago area casinos. He also questioned a state-run casino, a model that's unusual among other states. The
 
Chicago Crime Commission objected to the structure, calling for an operator-owned model like other casinos and more protections against corruption. Chicago area pastors and anti-gambling groups also warned lawmakers of possible social costs on either plan, such as more people hooked on gambling.
 
"Casino gambling is really nothing more than an increased tax on those who can't afford it," said Matt Fitzgerald, senior pastor at St. Pauls United Church of Christ in Chicago.
 
Noticeably absent from Wednesday's hearing were Chicago city officials, even while chamber of commerce groups said a downtown Chicago casino — in either plan — would create jobs and benefit the economy with estimated revenues between $450 million to $950 million. The Chicagoland Chamber of Commerce and urban planners envisioned a Chicago casino as a draw for tourists and locals, with shopping and live shows. They said possible locations included the Congress Plaza Hotel, the top floors of a downtown Macy's department store or the James R. Thompson Center, which a state building.
 
"Chicago is an incredible prize for the gaming industry," said Kim Goluska, president of Chicago Consultants Studio Inc. "The revenues are going to be huge no matter what they are."
 
Still, Emanuel spokeswoman Sarah Hamilton said the mayor wouldn't address expanded gambling until the city solved its pension problem. State lawmakers have approved a partial fix to Chicago's pension problem, but Quinn hasn't indicated if he'll sign it. Quinn's spokeswoman Brooke Anderson said the Chicago Democrat hadn't seen the two gambling expansion plans.
 
Rita said he hadn't spoken to either Quinn or Emanuel about the proposals, but wanted to call his legislation for a vote before the end of May. He's said that the political climate in Springfield could be more favorable than last year when lawmakers were considering plans to address the pension system, which is the worst-funded in the nation. Quinn has since signed a pension law. Lawmakers are also looking for additional revenue sources in this election year as the temporary income tax increase rolls back next year and creates the potential for major budget cuts.
 
One of his current plans calls for a Chicago casino with up to 10,000 terminals that'll share revenues;
 
Half would go to Chicago and the other half statewide for education and capital construction spending. The other plan would call for a 4,000 to 6,000-spot Chicago casino and smaller, 1,200-position ones in a suburb south of Chicago and the counties of Lake, Winnebago and Vermilion. It would also allow for slot machines at most horse racetracks. The second plan would also allow for revenue sharing.
 
The idea to separate out the Chicago casino has already drawn opposition from the Illinois' horse racing industry and mayors elsewhere, particularly in economically-depressed areas. They've argued for job creation with the five-casino proposal. The Illinois Casino Gaming Association, which represents most of the state's casinos, said it opposed both plans citing revenue drops over the years and market saturation.
___
The bill is SB1739.
 
 
 
 
 
 

Wednesday, April 16, 2014

Cops: Man shot, robbed after winning thousands at casino



Cops: Man shot, robbed after winning thousands at casino
Special to the Tribune
6:01 p.m. CDT, April 15, 2014
 
Palos Heights police officers investigate
Palos Heights police officers talk on the 7900 block of West 131st St. (Kevin Coyne, for the Tribune / April 15, 2014)
 
 
A man who won thousands of dollars at a casino Monday was shot and robbed this morning in his Palos Heights home, authorities said.

Palos Heights police are searching for two men in their 20s or 30s who entered the home through the back door, struck the victim with a blunt object and demanded his winnings from the riverboat casino.

Deputy Chief Dave Delaney said police were notified around 3:30 a.m. and dispatched officers to the 7900 block of West 131st Street.

“He had been at a gambling boat earlier in the night and had won a large amount of cash,” Delaney said. “It is believed that he was targeted due to his winnings at the boat.”

Scott Farrow, 51, was unable to recall the exact amount of money he had won at the riverboat but police estimate that his winnings were “several thousands of dollars.”

When Farrow refused to relinquish his winnings one of the men shot Farrow in the abdomen. Farrow fled to his neighbor’s house who then called police and medical personnel.

Paramedics took Farrow to Advocate Christ Medical Center in Oak Lawn, where he underwent surgery this morning. He was listed in serious but stable condition, Delaney said this afternoon.

“We are trying to talk to the victim, but he’s been in and out due to the pain medication,” Delaney said.

Crime scene tape encircled both Farrow and his neighbor’s home this morning while several police cars ushered traffic in front of both homes.

Local schools were notified of the incident but police believe there is no immediate threat to the community.

Police hope surveillance video from the casino where the Farrow was gambling the night prior to the shooting will help to identify the assailants. Farrow provided police with two riverboats and was unclear which one he attended Monday night, authorities said. Police said they are looking into both casinos before identifying them.

The shooting was the first in Palos Heights in at least 24 years, Delaney said.

“We haven’t had any shootings, outside of suicide, in the 24 years that I’ve been here,” Delaney said.

“The last homicide I can recall was at the Shell station in the early ’80s.”



http://www.chicagotribune.com/news/local/suburbs/palos/chi-palos-heights-shooting-robbery-20140415,0,6001541.story

 

Saturday, April 5, 2014

Old Casino Queen to be auctioned for debts







Old Casino Queen to be auctioned for debts

 


WOOD RIVER • The bright neon paddle wheel stopped beckoning gamblers to the East St. Louis riverfront years ago. The cacophony from slot machines fell silent.

The old Casino Queen riverboat, once a garish symbol of opportunity, is now stripped to its bones in a backwater boatyard, waiting for a little luck of its own.

Raccoons, mud swallows, sunshine and time have left the once-majestic vessel with tattered awnings, broken windows, rusted metal and peeling paint. It sits in Wood River, technically under arrest by U.S. marshals.

Today, they plan to auction the vessel to pay off its obligations and perhaps set it off on a new career.

Technically, it’s now called the White Star One. And after a federal lawsuit, an aborted auction and bankruptcy cases in two states, it is to be sold at 1 p.m.

East St. Louis was guaranteed a license when Illinois legislators authorized riverboat gambling to try to revitalize riverfront communities. In 1992, officials announced that a new, $13 million replica of a 19th-century sidewheeler was on the way. It would be the largest gambling vessel in Illinois and one of the biggest in the U.S.

The Casino Queen arrived the next year, stretching more than 400 feet at its mooring near the Eads Bridge. It held up to 3,000 passengers on three chandelier-accented gambling decks, plus a lounge on top.

The state required the boat to cruise the river, when conditions permitted, during gambling sessions. It last left the dock with passengers in 1999; regulators had relaxed the rules.

Further rule changes, in 2007, ended the boat’s career by allowing the gambling floor to be moved to a “boat in a moat,” a barge permanently anchored just inland.
The old Casino Queen went up for sale.

White Star Line LLC, managed by John Joslyn, bought it in 2008 for $2.5 million. The new owner moored it at Mike’s Inc., a boatyard in Wood River, at $200 a day, beginning Oct. 26, 2008.

In court filings, lawyers for Mike’s said it was supposed to stay only a short time.

Reached Thursday by phone, the Mike’s Inc., operations manager, Mike Marko Jr., said, “It seems like it’s been there forever.”

General Manager Amy Marko recalled that it arrived with carpet and other fixtures in place, and slot machine tokens scattered on the floor. Contractors eventually stripped the interior.
 
A TITANIC MUSEUM?
 
Mike’s workers heard that Joslyn, a Titanic shipwreck obsessive who has created Titanic museums in Branson and elsewhere, planned to turn the boat into another.

Joslyn is a former television producer who took a submersible to the Titanic wreck in 1986 and produced a documentary, “Return to the Titanic ... Live.”

But the museum plans apparently stalled.

White Star stopped making payments for a short time in the fall of 2010.

The rent went up to $300 a day on Jan. 1, 2011, $500 a day on Oct. 31, 2011, and $1,000 a day in
February 2013.

Lawyers for Mike’s Inc., filed an admiralty complaint in March 2013, claiming White Star Line and Joslyn failed to pay for almost $300,000 in mooring fees and other services since April 2011. The suit asked a judge to order that the boat be “arrested, condemned and sold,” with proceeds to first go toward bills at Mike’s.

Regions Bank then claimed that Joslyn and White Star owed $1.4 million on a $2.5 million promissory note from 2008.

ACF Property Management Inc. claimed that Joslyn and White Star owed it more than $1 million.
White Star and Joslyn asked for a delay in the proceedings, saying they were planning to move the boat elsewhere and obtain financing that would repay Regions Bank, ACF and Mike’s.

Joslyn, also in filings, said that the loans were personally guaranteed by himself and his wife, meaning that lenders would pursue them if sale proceeds don’t cover the debts.

In filings, White Star also complained about the price increases. But Mike’s responded that White Star did not protest at the time, nor move the boat.

A lawyer for White Star and Joslyn did not return a message seeking comment Thursday. Joslyn declined to comment, saying he had “nothing to say about it.”
 
AUCTION DELAYED
 
An auction was set for November, but was postponed when White Star filed for bankruptcy in Delaware. The case was later moved to the Southern District of Illinois, and in February the auction was given a green light.

An order by Bankruptcy Judge Laura K. Grundy noted that Joslyn decided not to attend a Feb. 13 hearing, as he had a “press conference in Tennessee related to a Titanic memorabilia display” and “made a strategic decision to put the interests of another venture ahead of the Debtor’s and not attend the trial.”

Neal Settergren, a lawyer for Mike’s, said that auction proceeds would be divided up by a federal judge.

During a tour for a reporter Thursday afternoon, Amy Marko said the old Casino Queen occupies more than one-and-a-half of the five end-to-end barges that make up the boatyard, which offers a drydock and a variety of repair and other services to river traffic.

She said it is hooked to electricity, so the boat doesn’t freeze up during extremely cold weather, and is regularly checked for problems. The once-iconic attraction, she said, receives little or no attention from passing river traffic.

Amy Marko said that from the outward appearance, the boat has experienced only the expected wear and tear.

Settergren, the lawyer for Mike’s, insisted that the hull and engines are sound. He said, “It’s not deteriorated or worthless.”

Robert Patrick covers federal courts and federal law enforcement for the Post-Dispatch. Follow him on Twitter: @rxpatrick.


http://www.stltoday.com/news/local/crime-and-courts/old-casino-queen-to-be-auctioned-for-debts/article_b254daae-d844-52dc-a098-db52c7003446.html



 

Thursday, March 27, 2014

Argosy reducing 3rd floor hours, shuffling slot machines



Casino limiting top floor hours


March 24. 2014 10:45PM
By Linda N. Weller lweller@civitasmedia.com

ALTON — Argosy Casino’s continuing dipping revenues forced the gaming facility to cut back hours on its top, third-floor slot machine area to three days per week.


“We did it to match our business levels,” said Scott Saunders, Argosy vice president and general manager.


The change, to only open the third floor gaming area on Friday through Sunday of each week, started at the beginning of March, Saunders said.


On those days, the third floor is open during the casino’s regular 22 hours, from 8 a.m. to 6 a.m. the next day. Every day, Argosy closes from 6 a.m. to 8 a.m.


Saunders said through attrition, the casino has not laid off employees because of the reduced hours on third floor, but it did adjust staffing posts.


As result of the hours reduction on third floor, though, Argosy is moving the most popular machines from the area.


“We are taking the machines that are played the most and relocating them to the first and second floors,” Saunders said.


Since 2007, when Argosy recorded its highest adjusted gross receipts of $125,701,589, AGR have dipped each succeeding year, as follows: $90,689,307 (2008); $84,206,140 (2009); $77,352,471 (2010); $73,064,474 (2011); $70,952,955 (2012); and, $64,253,526 in 2013.


Last year, though, Mississippi River flooding forced the casino to close for a week, which affected its 2013 revenues.


Source of the AGR data is Illinois Gaming Board’s website: (http://www.igb.illinois.gov/annualreport).

http://www.thetelegraph.com/news/news/880401/Casino-limiting-top-floor-hours

Monday, March 24, 2014

Indiana Couple Arrested for Cheating Harrah's


Indiana Couple Implicated in Joliet Casino Cheating Ring Jailed

Two of the five alleged casino cheats who took the Joliet Harrah's for as much as $500,000 were arrested.

Virginia Thorpe

Former LaPorte supt. now faces charges involving Illinois casinos

POSTED: 04:53 AM EDT Mar 24, 2014
 
Rande Thorpe
Former LaPorte Schools Superintendent Rande Thorpe (Miss. booking photo)


The former superintendent of LaPorte Schools and his wife both now face several charges involving Illinois casinos.

Rande Thorpe, 57, and 59-year-old Virginia Thorpe are accused of taking part in a ring that would rig video Keno machines at a Joliet, Illinois casino.

The couple is now charged with several crimes there.

Thorpe was arrested for the same type of crime at a casino in Mississippi just before he suddenly resigned from LaPorte at the end of January.


http://www.wsbt.com/news/local/former-laporte-supt-now-faces-charges-involving-illinois-casinos/25130500


Former LP schools superintendent arrested


By MATT FRITZ
Staff writer
Published: Tuesday, February 4, 2014 5:05 PM CST
La PORTE — Two days after the La Porte Community School Board accepted a retirement request from interim superintendent Rande Thorpe, he was arrested in Mississippi on a charge related to gaming violations.

Thorpe was arrested on Jan. 22 by the Tunica County Sheriff's Department.

"We are shocked by this happening," school board president Mike Kellems said Monday. "We were made aware of some legal issues by Mr. Thorpe just prior to his request to retire, and the one thing we are confident of is it had no connection to the La Porte Community School Corporation."

On Jan. 20, board members accepted Thorpe's retirement request, citing a letter from Thorpe which referred to family health issues

During the meeting, board member Mitch Feikes made reference to a sign on Thorpe's wall at La Porte Community Schools reading, "I will never do anything illegal, immoral or unethical."

He was credited with keeping the corporation in good financial standing despite state budget cuts and the county-wide tax situation, which severely cut corporation revenue.

On Monday, Kellems said the school board has little knowledge about what Thorpe's facing or what occurred.

"The only thing we knew is just prior to his request to retire there was a warrant issued for his arrest in the state of Mississippi for a gaming violation," he said.

He said he had the school board attorney contact the Mississippi attorney general's office for more information, but to no avail.

"I understand when there's an ongoing investigation they are only going to release so much," said Kellems, who is also the commander of La Porte County Jail, "and this is something I'm doing as board president, not as a law enforcer."

While confirming the arrest, representatives from the Tunica County Sheriff's Department would release no further information without a written request.

A representative from the Mississippi Gaming Commission said Thorpe's arrest is part of an ongoing investigation and the organization is not releasing any information at this time.

Kellems said the school board is now advertising for a permanent superintendent and is selecting a committee to help in the process of selecting a candidate.

An interview with a prospective interim superintendent was held Monday during an executive session of the board.

http://thenewsdispatch.com/articles/2014/02/04/news/local/doc52f040a1528c4216474566.txt

Friday, December 27, 2013

Gambling Addict Embezzles $124,000


Woman who stole $124,000 sentenced to probation





An Illinois woman who admitted she had a gambling addiction when she embezzled $124,000 from a Quad-City staffing agency was sentenced Thursday to probation.

Scott County District Judge Mark Cleve told 40-year-old Heather Quist of Carbon Cliff that if she violates her probation, she'll face 20 years in prison.

She had pleaded guilty to two counts of first-degree theft.

"I want to teach my children that if you own up to what you've done, there is some sort of forgiveness," Quist said in court.

Cleve said he was giving Quist probation so she can work to pay off what she stole from Chenhall's Staffing, 2119 E. 12th St., Davenport, where she worked at least two years as a recruitment specialist.

Court records state Quist issued checks to herself from the company's checking account without authorization and deposited the checks into two different banking institutions.

When issuing checks to herself, she forged the name of the company’s owner, Bob Hickman, records state.

She accused of embezzling $124,812.92 from the company account from October 2010 to December 2012.

"She's very embarrassed about what happened," her attorney, Jean Capdevila, said.

Capdevila said Quist suffers an addictive personality disorder, including a gambling addiction, as well as bipolar disorder.

Quist said in court that she's seeking therapy for her gambling addiction and hasn't gambled in a year.

Hickman, who appeared at her sentencing, declined comment afterward.

http://qctimes.com/news/local/crime-and-courts/woman-who-stole-sentenced-to-probation/article_bd74da1f-3088-565e-850b-a0da7f57dcf3.html



She pleaded guilty in 1998 to fourth-degree theft, court records state. She was sentenced to one year of unsupervised probation. Fines, court costs and restitution at the time totaled $1,000.

http://qctimes.com/news/local/crime-and-courts/area-woman-charged-in-theft-from-employer/article_b1b8e280-9275-11e2-92b5-0019bb2963f4.html

 
Carbon Cliff woman pleads guilty to embezzling
Originally Posted Online: Nov. 08, 2013

By Rachel Warmke
A Carbon Cliff woman has pleaded guilty in Scott County to two counts of theft that say she embezzled more than $120,000 from her employer and used the identity of a former employee to cash phony paychecks.

Heather Quist, 38, a former accountant with Chenhall's Staffing, 2119 E. 12th St., Davenport, faces 10 years in prison for each count of theft.

She is scheduled for sentencing Dec. 26, when two counts of forgery and one count of fraud (identity theft) are expected to be dismissed as part of a plea bargain.

Scott County prosecutors said that between Oct. 18, 2008, and April 9, 2010, Ms. Quist issued 38 payroll checks in the name of a former employee, for work that had never been done.

After forging the name of the past worker on the check, Ms. Quist wrote "pay to the order of" and her name on the back of each check, and cashed them, charges say.

"The victim of the identity theft never authorized the use of his personal information by the defendant," a police affidavit states, alleging the name of the former employee, his date of birth and social security number were among details deceitfully used.

Charges say the scheme cost Chenhall's Staffing about $40,205.

In a second felony count, Ms. Quist  was accused of embezzling about $124,812 from the company's account between October 2010 and December 2012, then forging the name of the owner or using a signature stamp to issue checks to herself.

Charges say she deposited the checks between three accounts she had with two banks.

In a victim impact statement filed Aug. 22, company owner Robert Hickman claimed Ms. Quist had stolen $190,000 during five years, which "about put us under."

He said his company has since adopted new accounting policies. "Double checks on everything related to financial!" he wrote.
 

http://qconline.com/archives/qco/display.php?id=658999&query=Heather Quist

 


Wednesday, October 16, 2013

24-Hour Casinos A Bad Deal For Illinois, Gambling Critics Say



24-Hour Casinos A Bad Deal For Illinois, Gambling Critics Say
Ellyn FortinoMonday October 14th, 2013

Anti-gambling groups and opponents of around-the-clock casinos are urging the Illinois Gaming Board to reject a proposal that would allow the state's 10 casinos to operate nonstop, seven days a week.

The gaming regulatory board heard arguments last month about the push to extend the current 22-hour operating limit for state casinos to 24 hours. As part of the proposal, backed by the Illinois Casino Gaming Association, casinos would decided on an individual basis whether to operate continuously.

Supporters say the two extra hours would help boost revenue and allow casinos to better compete with video gambling and slot machines at truck stops and bars as well as 24-hour gambling houses in nearby states like Indiana and Wisconsin.

But opponents say they are concerned that people with gambling problems will stay way past the 24 hours.

"We know that there are those horror stories where people sit more than 24 hours and gamble, and that’s not discretionary money, those are the problem gamblers," said Jeanie Lowe, director of governmental affairs with the Illinois Church Action on Alcohol & Addiction Problems, an anti-gambling organization. "They usually are the ones who have to be asked to leave when (casinos) close for those two hours, [and] maybe that’s the only time they go home or they get away from the machines."

Anita Pindiur, clinical director of The Way Back Inn, a suburban Chicago drug abuse and addiction center, said problem gambling affects about 3 percent to 5 percent of the nation's population.

"When there is a problem gambler in the family, he or she (is) affected by this disease, but so is the family economically [and] emotionally," said Pindiur, a member of the Illinois Council on Problem Gambling.

Pindiur, who said she does not take a position on gaming-related laws or proposals, said she's less concerned about 24-hour casinos and more focused on making sure that help and treatment is available to those who need it.

"If a problem gambler can gamble 22 or 24 hours, it doesn't really make that much of a difference," she explained. "What makes a difference is: is there help? Is it available? And can they access it?"

The Illinois Casino Gaming Association, which represents the 10 casinos, says it has helped with various gambling-addiction efforts, such as working to set up a hotline for addicts as well as a program where people can voluntarily bar themselves from casinos.

Pindiur acknowledged that casinos have taken important steps to address gambling addiction, but she said they could be doing more, especially if the facilities are allowed to operate around the clock.

"If they want to be open 24 hours, great. But if they notice that somebody is there for 24 hours, there's probably some other underlying issue, and perhaps [casino officials] being able and willing to say, 'What is this issue? What do we need to do? Maybe we can do some outreach for this person.'"
Gambling addition can take a toll of families, but it's also a drain on communities, Lowe added.

That's because people with gambling problems often spend a good chunk of their money on gaming and fewer dollars on basic necessities and other forms of entertainment, like going to the movies or out for dinner.

Overall, 24-hour casinos are a bad bet for Illinois' economy, said prominent gambling critic John Kindt, emeritus professor of business and legal policy at the University of Illinois. Kindt called slot machines "job killers."

“Every slot machine takes at least one job out of the consumer economy because people aren’t buying cars, refrigerators and the other necessities of life," Kindt said in a statement. "They’re gambling all that money away. Staying open all day and all night year-round just intensifies this problem.”

Slot machine owners and operators in Illinois each take home 35 percent of a gaming device's gross revenue, and 30 percent is set aside for the state to share with the municipality housing the casino, Kindt noted. That means the state makes $30,000 for every $100,000 a slot machine collects.

“For the state to keep siphoning 35 percent to owners of the machines and then another 35 percent for the operators – the truck stops, the bars – makes it a total giveaway of taxpayer dollars to special interests who are destroying the state’s economy by reducing our overall tax revenues, creating huge new social problems and killing our jobs,” he stressed.

Jane Ramsey, former executive director of the Jewish Council on Urban Affairs and current president of Just Ventures, said casinos already prey on the most vulnerable people, including low-income seniors and families. Ramsey, a member of the Task Force To Oppose Casino Gambling in Chicago, said she's worried that 24-hour casinos would mean more economically-insecure people being drawn to the gaming facilities to spend their already limited resources.

"(Casinos) will get more dollars, but those are not public-good dollars. Those are dollars that are going to private pockets," she said. "Our concern is from a public policy standpoint. The casinos do not benefit the state of Illinois, and they are not benefiting our services."

According to the gaming association, Illinois' nine casinos, not including the new River Casino in Des Plaines, saw revenues drop 38 percent since 2007, which ultimately means a decline in revenue for the state and local communities. The nine casinos also lost a total of 2,000 workers since that time.

The association maintains that 24-hour casinos would provide the state with $5 million in additional revenue each year.

But Lowe said extending casino hours to help level the playing field with gaming devices elsewhere is a "very weak" and "thinly-veiled" argument.

"Because one state does one thing that they shouldn’t do doesn’t mean that Illinois should follow suit and do the same thing," she said, referring to other states that permit 24-hour casinos.

In response to the issue of gaming devices at truck stops and bars, Kindt argued that those gambling services should be scaled back to more reasonable hours.

“Instead of expanding gambling, we need to start restricting it," he said. "A good first step would be rejecting this push to keep casinos open 24/7, and then move on to curbing these obvious abuses at bars and truck stops.”

The gaming board may make a decision regarding the extended casino hours later this month at its October meeting. Board members have already taken up the issue three times since 1990, but they shot it down each time.

"We're just praying that the gambling board will stay strong and continue to be a strong regulator and not a cheerleader for (casinos)," Lowe said. "(Gamblers) just need to be told, 'You need to go home.

It's time to stop.' They need that break. We don’t see that as a lot to ask."

http://progressillinois.com/quick-hits/content/2013/10/14/24-hour-casinos-bad-deal-illinois-gambling-critics-say