Expansion Plan for Gaming Gets Noticed

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In Illinois, the latest plan to expand gambling includes a grant to help the state’s horse racing. Additionally today, Gov. Rod Blagojevich showed an interest in the idea.

The plan brought to fruition by Rep. Robert Molaro, a Democrat, is a variance of the very plan the Governor himself implied in March.

The plan would permit the state’s casinos to have up to 3,000 slot machines and also have table games. Currently, Illinois only allows up to 1,200 slots. In return, casinos would give the state $20,000 for each new machine. No new casinos would be allowed.

It is approximated that the state would generate between $500 – $600 million next year alone, in additional taxes and earnings from permitting more space to gamble in the casinos.

The difference between the governor’s plan and the Representative’s plan is that, Molaro’s plan includes giving 3% of the casinos’ gross earnings to the state’s racing industry. Molaro idea is to save the racing industry from the extra competition created by the state.

Additionally, the Rep’s plan asks for the top tax rate on Illinois casinos to drop down to 50%. Currently it is 70%, which the Governor supports.

The plan is likely to get a conservative response from lawmakers who are in favor of opening new casinos.