Illinois gamblers will not see more baccarat tables or other gambling positions
Illinois' gamblers will not see more baccarat tables or other gambling positions at the state's nine riverboat casinos in 2006, but pending tax law changes may mean more are coming in the future.
"I think everybody is interested in expanding," said Tom Swoik, executive director of the Illinois Casino Gaming Association. "In any of the projects that are moving forward now, I would anticipate that the various properties will be looking very closely at what they think their market may be able to increase to if they got additional positions."
While pending legislation encourages expansion, it also guarantees the state will receive at least as much revenue as it did last year under a "hold-harmless" provision.
The Par-a-Dice in East Peoria, for example, will have to pay the state at least $43 million a year for the next two fiscal years, until the hold-harmless provision expires.
Graduated taxes
Under a law that went into effect in 2003 and expired this year, all but one of Illinois' riverboats were paying at least 50 percent of their adjusted gross receipts in taxes, with some paying as much as 70 percent. Now, under a measure awaiting Gov. Rod Blagojevich's signature, the top earning casinos -- those grossing $200 million or more -- would be taxed at a 50 percent rate.
Those raking in receipts between $100 million and $150 million, which includes the Par-a-Dice, would be taxed at 37.5 percent.
As a compromise for the riverboats, the new law requires that the eight casinos that attract more than 1 million visitors each year will have to pay a $3 tax per admission, instead of the previous system in which those casinos with the highest admission totals were paying up to $5 per admission.
Attempts to reach the governor's representatives for comment were unsuccessful.
Expansion possibilities
Rob Stillwell, vice president for corporate communication at Boyd Gaming, which owns the Par-a-Dice, said it's too early to tell how the new tax structure will affect the casino in terms of revenue growth.
"A couple of years ago, the tax was supposed to sunset, and now here we are with the hold-harmless provision, so we're not sure exactly what's going to happen," Stillwell said.
Still, the new tax structure may afford the Par-a-Dice an opportunity to expand, which Stillwell said the casino would like to see happen eventually. Two months ago, Stillwell said the East Peoria casino would not be interested in expanding without a cut in taxes.
Swoik said measures that would expand gambling positions, including one pressed by Blagojevich, were taken off the table this year because the state received enough tax money through the General Assembly's decision to suspend pension payments to the state's retirement systems.
When that pension holiday is over, Swoik said he expects a major push to increase the number of casino positions because gambling is one of the few revenue generators capable of raking in $500 million for the state.
"Whenever we do get additional positions there will be a lot of capital expenditures and improvements and expansion going on within the existing facilities," he said.
