Pony Up! Political giving by horse tracks surges
past casinos
May 16, 2003
The prospect of quick winnings draws many to gambling,
and Illinois government is no exception. Squeezed by a deficit
approaching $5 billion and a gubernatorial promise not to raise
sales and income taxes, the legislature seems inextricably pulled
toward proposals to increase the number of gaming sites around
the state. These may include increasing the number of operating
casinos, legalizing slot machines and video poker at horse tracks
and other locations, increasing the number of machines at existing
casinos, or some combination of these.
| Political giving by gambling interests,
2001-2002 |
| Horse tracks |
$1,488,147 |
+89% |
| Operating casinos |
$709,323 |
-2% |
| License seekers |
$117,147 |
-58% |
| Misc.* |
$41,698 |
N/A |
| Total |
$2,356,315 |
+31% |
| * Mostly video gaming and slot machines |
In recent years, proposals to tinker with the state's
gambling laws have generally ballooned to gigantic proportions,
only to finally fall of their own weight. And this year may be
no exception. Gambling interests are regular players, and large
campaign contributors, at the State Capitol. But what may make
this year's push different is the unified control of the legislature
and governor's mansion under the Democrats, meaning that fewer
political interests need to be accommodated. And the suddenly
keen interest of Chicago Mayor Richard M. Daley may help advance
the effort.
Illinois campaign disclosure laws frustrate efforts
to follow the money during the legislative session. Campaign reports
are complete only through the end of 2002; total figures for the
first half of 2003 will not be available until August.1 While
observers can note who gave in the recent past, most contributions
made during the current legislative session will be hidden from
view until after adjournment.
Riverboats and racetracks tend to have distinctly
different interests, often at odds with each other. Horse tracks
seek to protect and expand their tax subsidies, and lately have
sought video and slot machine positions to supplement stagnating
receipts at the gate. Operators of existing casinos have sought
to increase the number of machines they can operate, while blocking
increases in the number of casinos and to reduce the taxes on
their net incomes. Potential new operators have sought licenses,
either through the assignment of the dormant tenth license or
the addition of new licenses. Here's a breakdown of gambling giving:
Horse tracks have increased their giving the most
recently, and are now easily the largest gambling donor. Horse
track giving ballooned 89.1%, from $787,066 in 1999-2000 to $1,488,147
in 2001-2002. Increases may be due to their concerns as track
owners, but two of the largest owners, the Duchossois and Bidwill
families, have historically been large Republican donors, and
their increase may also be tied to efforts to help Republicans
retain power in the face of a strong Democratic tide.
- Duchossois family interests. The Duchossois family sold
majority interest in Arlington Race Track to Churchill Downs,
but retains a minority holding. Total giving by these associated
interests reached $912,700 in 2001-2002.
- Bidwill family interests. The Bidwill family owns Sportsman's
Park, which was remodeled to include the Chicago Motor Speedway
to host both horse and auto races. In December, 2002, the
state paid $750,000 to Sportsman's, which is now shuttered,
to reimburse some of the costs of converting to dual use.
The Bidwills are also associated with the National Jockey
Club, which merged with Hawthorne Race Course in July, 2002
to form Hawthorne National; Charlie Bidwill III remains a
vice president of the merged company. Total giving by interests
associated with the Bidwills reached $164,000 in 2001-2002.
- Four aligned horse racing interests combined to give $168,000
in 2001-2002, including $85,000 to Gov. Rod Blagojevich on
May 21, 2002. These racing interests include the Racing Association
of Illinois and Balmoral Racing Club, located at the same
address in Crete, and the Egyptian Trotting Association and
the Maywood Park Trotting Association, both located at the
same address in Maywood.
Existing casinos have been less generous than the
horse tracks this year, but are still large donors. In addition
to their political giving and lobbying efforts, the casinos have
argued that tax increases or the expansion of gambling positions
would lower the value of the tenth license, which may be auctioned
for the benefit of the State. Giving was down slightly, partly
because the boats' biggest issue, dockside gambling, was won in
the last legislative session. Too, Empress Casino, which gave
over a quarter million in 1999-2000, was bought by Argosy, partly
controlled by Republican power broker Bill Cellini, and their
giving fell by half. If efforts to increase the number of casinos
or to expand gaming positions to tracks and other locations appear
to be taking hold, however, casinos may be expected to play a
larger role, as both contributors and as lobbyists.
- Hollywood Casino Aurora. Total giving reached $222,000 in
2001-2002, up 98% from 1999-2000.
- Argosy Gaming Company. Total giving reached $143,000 in
2001-2002, down 50.4% from 1999-2000.
- Harrah's Operating Company. Total giving reached $122,000
n 2001-2002, down 4.3% from 1999-2000.
Interests believed to be seeking a casino license
include the City of Rosemont and a consortium in Lake County.
While the Rosemont and Lake County interests had been fighting
in court over control of the tenth license, it now appears that
neither side will get a casino. The City of Chicago has also recently
expressed interest in obtaining a casino.
- Rosemont Mayor Donald E. Stephens has given $106,400 through
his main political committee. Rosemont was to have received
the tenth license, but the Gaming Board delayed final assignment
of that license due to allegations of ties between the Emerald
consortium, which would operate the Rosemont casino, and organized
crime. Rosemont reportedly seeks reimbursement for the cost
of a parking garage built adjacent to the intended location
of the casino.
- Lake County interests. Led by S/L Waukegan LP, the Lake
County interests gave $16,500 in 1999-2000, but reported only
$500 in giving in 2001-2002. The Lake County group lost a
court challenge to block the Rosemont casino.
- City of Chicago. Most of the political muscle regarding
Chicago's potential receipt of a licensed casino is probably
unrelated to campaign giving. Chicago Mayor Richard M. Daley
reports no transfers out from his political committee. Donald
Trump, who owns a casino in nearly Indiana and recently purchased
the Chicago Sun-Times headquarters on the Chicago River near
downtown, gave $10,000 during 2001-2002.
Whatever happens with the gambling proposals, one
thing is clear: contributions and clout have combined to push
gambling expansion down the final stretch of the legislative session,
shouldering aside other concerns that lack the gaming industry's
muscle.
1 Committees that did not file certificates of non-participation
were required to file reports in relation to the municipal elections
last Winter. These reports are not representative of all committees,
and include giving only through the date of the April run-off.
These reports show total giving of $52,900 from gambling interests
to statewide executive and legislative committees during 2003.
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