Casino news source: The Herald News - http://www.suburbanchicagonews.com
Casino funds up in smoke
JOLIET EXPECTS TO LOSE MONEY WHEN GAMBLERS GAME IN STATES THAT DON'T BAN PUBLIC SMOKING.
December 9, 2007
By BOB OKON Staff writer
JOLIET -- The city of Joliet already expects its casino tax revenue to drop by 7.5 percent next year when a smoking ban takes effect. But that forecast could be low if the casino industry's prediction proves true.
Illinois casinos are predicting a 20 percent decline in revenue strictly because of the smoking ban.
» Click to enlarge image
City officials are showing signs that they expect their budget to be pinched by both a smoking ban next year and the prospect of more casino competition in the future.
(AP File)
"That's what happened in Delaware, and that's what happened in Windsor, Canada," said Tom Swoik, executive director of the Illinois Casino Gaming Association.
Just what happens in Joliet, of course, won't be known until the city's two casinos start operating without cigarette and cigar smoke in the air.
But Joliet's two casinos do tend to lose business when gamblers have a reason to switch to Indiana. And the smoking ban that goes into effect in January could be one such reason.
Possible budget pinch
City officials are showing signs that they expect their budget to be pinched by both a smoking ban next year and the prospect of more casino competition in the future.
Last week, the city council cut back a four-year plan for managers' pay raises to one year, noting in part the uncertainty of future casino revenues.
Councilman Warren Dorris did not mention the smoking ban. But he did say that more casinos in Illinois could dilute the amount of money Joliet has available to pay city employees in the future. State lawmakers are looking at a plan that could let a casino into Chicago and make room for as many as three additional casinos in Illinois.
Cuts in use of gambling money
The proposed city budget for 2008 forecasts a $2.8 million decline in casino revenue to $34.5 million.
That's a small part of a $268 million budget. But the city is accustomed to seeing casino revenues rise.
The city budget freezes the amount of gambling revenue that would be shared with school districts and other taxing bodies and nonprofit agencies.
Schools would get $1.28 million like they did last year. But there are cuts in the use of gambling money for capital projects and one-time expenses, said Ken Mihelich, director of management and budget.
Mihelich said the budget does not calculate any declines in revenue that could come if Joliet's two casinos have to compete with more casinos in Illinois.
"We didn't do it at this point because there wasn't anything that would indicate that it would affect us in 2008," he said.
If the state does approve more casinos, they aren't likely to open in 2008, he said, and the budget can be adjusted if they do.
Mihelich said city officials believe their prediction of a 7.5 percent reduction in casino revenues is "conservative."
There is a school of thought that casinos won't lose business because they'll attract more people who don't smoke and who avoid places where smoking is allowed.
The casinos claim that they've accommodated nonsmokers with more sophisticated ventilation systems.
Right now, they're more worried about losing gamblers who smoke. Not all gamblers smoke. But, Swoik said, "There seems to be a high correlation." |
|
World Casino Directory 
Gambling Forums 
