Washington State has long allowed for medical marijuana, and it legalized pot for recreational use last year.  But financial institutions still face intense pressure from federal authorities, because pot is illegal under the nation’s Controlled Substances Act.  Banks that deal with cannabis businesses open themselves up to accusations of money laundering, so they avoid it altogether.  To read the article, click here Money.CNN.com article/video.

      It is now blamed for the undoing of former San Diego Mayor Maureen O’Connor, sinking her deep into debt and resulting in a federal charge of making an unlawful transaction with $2 million in embezzled funds.

     Video poker was her vice, according to federal court records, as it is for many women who seek escape from bigger problems.

     “It’s not about the money.  It’s about how it’s making her feel, ” said Dr. Suzanne Pike, an Escondido psychologist who treats addicts at her San Diego Center for Pathological Gambling.  “It’s a smoke screen for what she’s not dealing with.”

     Click here to read the full story Video Poker Ex Mayor

Rep. Jay Hoffman, formerly point person in the House for Governor Rod Blagojevich, has introduced House Bill 964 to legalize Advance Deposit Wagering through December 31, 2015.  HB 964 would allow these two companies, who conducted illegal gambling, to keep their licenses and continue to conduct Advance Deposit Wagering with no penalties!

Senate Bill 70 would allow video gambling closer than 100 feet from a school or church if the veteran or fraternal group, licensed establishment or truck stop obtained its original liquor license before the school or church located there.   One of the concerns ILCAAAP brought up during testimony to oppose the video gambling, was the fact that many alcohol pouring establishments are closer than 100 feet from schools and churches due to exemptions to the law.

Children play video games, but it is illegal for anyone under 21 to gamble on video gambling machines that will be put in pizza parlors, family restaurants, bowling alleys, and other video gambling establishments located near schools and churches.  There are insufficient safeguards to protect children from gambling when the machines are labeled and advertised as “video gaming”.   An establishment just needs to have one person 21 years of age or older watching the area where the gambling machines are located.   SB 70 is scheduled to be heard in the Senate Executive Committee on February 5^th.   

HB 996 expands charitable gambling:  removes the bet limit on games, like poker, doubles the amount of cash winnings, triples the number of charitable game events that a company can manage or operate, increases the number of charitable games events that can be held in one premise, and allows video gambling machines in the same establishments as charitable gambling.  Currently, slot machines are prohibited at charitable games events.   HB 996 turns charitable events into casinos.

Video gambling will not fly at the Peoria airport

  During an airport authority meeting board members expressed opposition to a proposal.  With just one restaurant at the airport, some board members say hungry travelers, not interested in gambling, would not have other options to choose from during long layovers.   . . . Airport Director Gene Olson says many airports around the country have been approached about establishing video gambling. He says so far none in Illinois have bought into the concept. http://www.cinewsnow.com/news/local/189106061.html

A few years ago, the bowling center, like many across the state and U.S., struggled as adult league membership dwindled to all-time lows while children chose soccer, video games and other modern pastimes over old-school bowling lanes.

But strategic marketing by the bowling industry, welcomed by teachers and parents in the tough economy, has led to an explosion in youth bowling in recent years in Illinois. By offering free bowling balls with youth lessons, bowling equipment for gym classes and college bowling scholarships awarded to children as early as elementary school, bowling officials said youth participation in the sport is higher than ever.

Today nearly 50 percent of Illinois elementary and middle school students are learning how to bowl through a special curriculum designed for gym class, including at 40 of Chicago’s public schools. At Illinois high schools, there are 221 varsity girls teams, compared with 83 in 1989, when bowling became a varsity sport recognized by the Illinois State High School Association. There were 184 boys teams last year, compared with 111 in 2003, its first varsity year, according to the Illinois State Bowling Proprietors Association.

“I love this,” said Kim Sims, co-owner of Fox Bowl who, along with her husband, has offered numerous incentives to inspire young bowlers to fill their center Tuesday, Thursday and Sunday afternoons. “It’s not just an investment in my future; it’s an investment in theirs.”

Once a standing commitment on people’s social calendars across the Chicago area, league bowling peaked in the 1980s when adults didn’t hesitate to sign up for teams that met weekly for 32 weeks. But as new forms of entertainment became available and people became busier, the bowling night tradition faded, said Bill Duff, executive director of the local Bowling Proprietors Association affiliate.

“There were so many more alternatives for people. You had the advent of computers and the Internet and, at the time, VHS tapes. That gave consumers a lot more options,” Duff said.

While the owners of some long-standing bowling alleys saw the shift as reason to close up shop and sell their properties for lucrative real estate values available at the time, others embraced new technology.

For the next two decades, features such as automatic scoring, gutter bumpers and black lighting helped bowling center owners make up revenue lost after the demise of league bowling. But the new attractions attracted occasional, not lifelong, bowlers.

And that, bowling industry leaders feared, would become a problem eventually.

“Centers were more successful in making revenue, but they had a declining league base, and sooner or later, that catches up to you,” Duff said.

Read the full story…

The most popular gambling activity with students was playing the lottery (41 percent), followed by card games (38 percent) and sports betting (23 percent).

From the PITTSBURGH TRIBUNE-REVIEW:

PITTSBURGH — Just weeks before Christmas 2005, Greg Hogan Jr. — president of his college class, gifted cello player and son of a respected minister — slipped a note to a terrified Lehigh County bank teller warning that he had a gun and demanding all her money.
Later that day police slapped handcuffs on him as he was about to perform with his college orchestra.

For Hogan, it was the end of a tortured journey from friendly dorm room poker games with buddies to the life of a compulsive gambler so addicted to online gambling that he sometimes spent more than 12 hours a day at his computer placing wagers.

About 6 percent of college students in the United States have serious gambling problems, according to the National Council on Problem Gambling. It’s a number experts say is growing as more opportunities become available to gamble.

Nationally, about 75 percent of college students gambled last year and 18 percent admitted they did so at least weekly, according to the council’s partner, CollegeGambling.org.

The most popular gambling activity with students was playing the lottery (41 percent), followed by card games (38 percent) and sports betting (23 percent).

Dr. John Massella, who runs a California University of Pennsylvania addiction program called Cal Clean and Sober, said the temptation is heightened in areas where casino gambling is readily available.
Patrons at the state’s 11 casinos must be 21, but anyone 18 and older can play the lottery.

In Pennsylvania, “there’s a lot of gambling; there’s no shortage of it,” said Dan Romer, director of health communication at the University of Pennsylvania.

The freedom that comes with being away from home and the need to fit in with peers often leads students to dabble in gambling, Romer said.

College officials are increasing their efforts to deal with problem gambling. Massella started a group at his school for students battling the addiction.

Butler County’s Human Services Drug and Alcohol branch partnered with Slippery Rock University of Pennsylvania to assess the status of gambling on the campus, which is an easy drive from casinos in Erie and Pittsburgh. They will identify where problems exist and develop resources for students.

The Civic Federation supports Governor Pat Quinn’s veto of Senate Bill 1849, which would authorize casino gambling in Chicago and significantly expand gambling in other parts of Illinois.

Governor Quinn’s veto of Senate Bill 1849 awaits action by the Illinois General Assembly. In his veto message, the Governor emphasized deficiencies in the proposed gambling expansion’s regulatory oversight and ethical requirements.

The Civic Federation supports Governor Quinn’s veto and strongly agrees that the Illinois General Assembly should put aside gaming expansion until after the passage of comprehensive pension reform. Faced with an unfunded pension liability of $97 billion and total pension payments that are expected to consume 22% of State-source general operating revenues in FY2013, the General Assembly should no longer be distracted by the issue of gaming expansion.

Rationale for the Governor’s Veto

The Civic Federation supports the Governor’s reasons for vetoing SB1849, which include the following:

• The bill does not provide the Illinois Gaming Board with clear regulatory authority over the Chicago casino, in line with its oversight of other Illinois casinos. The Gaming Board, which already has substantial resources and expertise in regulating gambling, should be the sole regulatory authority;
• The bill does not prohibit campaign contributions from gaming licensees and casino operators. Such a ban is needed to help prevent political corruption and protect the public interest; and
• The State’s most pressing financial problem is its severely underfunded retirement systems. The General Assembly should focus on finding a solution to the pension crisis.

Additional Concerns of the Civic Federation

In addition to supporting the Governor’s reasons for vetoing SB1849, the Civic Federation has the following objections and recommendations relating to the proposed gambling expansion:

• Allocation of new casino licenses: The Civic Federation opposes the determination of new casino locations by the General Assembly. The interests of State taxpayers are best served by permitting new casino licenses to be allocated through a competitive bidding process overseen by the Illinois Gaming Board. The General Assembly should not choose the locations of new casinos on political grounds.
• Approval of electronic gaming licenses for racetracks: The Civic Federation opposes the provision of SB1849 that appears to require the Gaming Board to award electronic gaming licenses to racetrack owners. The General Assembly should not mandate which applicants receive gaming licenses. This determination should be left to the Gaming Board.
• City ownership of Chicago Casino: The Civic Federation opposes government ownership of a casino or any other enterprise for which there is a viable private alternative.
  • The primary purpose of government is to protect the public interest and promote improved quality of life for all citizens through law enforcement and reasonable regulation of business activities. The ownership goal for a business enterprise is to maximize profits for its shareholders. These two goals are in direct conflict for a government-owned casino.
  • We oppose using public funds to promote and market a government-owned activity that competes with already existing, privately-owned business activities. Although it may appear that the success of a City-owned casino is assured, there are substantial risks and Chicago taxpayers should not be asked to guarantee the success of such a venture.
  • If Chicago municipal government desires to have casino gambling it should participate in an open bidding process with all other parts of the State. The City should also publicly disclose where and under what circumstances such establishments would be authorized and what taxes would be applied.
• Modest Fiscal Impact: The Civic Federation is concerned that the bill is projected to generate only modest increases in recurring State general operating revenues due to reduced tax rates and diversion of revenues to special-purpose funds. Tax rate reductions and diversions from general operating revenues reduce economic and fiscal benefits of gaming expansion for the State of Illinois.
• Evaluation of costs and benefits: The Civic Federation urges that an independent cost-benefit analysis of any new casino be conducted each year during the term of the initial license.
  • The evaluations should be modeled on those produced for the Indiana Gaming Commission and provide information on total costs, including social costs such as crime, bankruptcy and mental health problems, compared with total benefits, including jobs created and wages generated.
  • After the initial renewal period, the Federation recommends that independent cost-benefit analyses be done for each casino—both new and existing—prior to each license renewal.

  Summary of SB1849

  • Authorizes five new casinos: four in the cities of Chicago, Rockford, Danville and Park City (near Waukegan) and the fifth in one of six townships in south suburban Cook County;
  • Authorizes land-based casino operations upon approval by the Illinois Gaming Board;
  • Establishes the Chicago Casino Development Authority with dual status as a local unit of government and a casino licensee regulated by the Gaming Board. The Authority is governed by a five-member board appointed by the Mayor;
  • Grants the Authority the power to issue long-term bonds to fund casino development backed by casino property, revenues and other payments;
  • Grants the Authority a permanent gaming license. Other owners’ licenses may be revoked, suspended or have their renewal terms of up to four years limited by the Gaming Board;
  • Grants the Authority an initial total of 4,000 gaming positions. Each of the other four new, non-government owned casinos is granted an initial total of 1,600 gaming positions;
  • Expands total gaming positions to 1,600 from 1,200 at the ten existing riverboats with any unclaimed positions being available to other locations;
  • Authorizes electronic gaming at the State’s six racetracks, allowing 1,200 positions at Cook County tracks (Arlington, Hawthorne and Maywood), 900 at Balmoral and Fairmount and 350 initial positions at Quad City Downs, increasing to 900 by 2015;
  • Creates a new wagering tax structure that:
    1. Establishes separate tax rate structures for table games and electronic gaming;
    2. Reduces the highest tax rate applied to Adjusted Gross Receipts (AGR, or gross receipts minus winnings paid to gamblers) from 50% across the board to 22.5% for table games and 40% for electronic gaming devices;
    3. Includes lower tax rates for the highest AGR levels (16% for AGR of $70 million and up for table games and 20% for AGR of $350 million and up for electronic gaming devices);
    4. Includes a tax reduction of up to 5% if a casino receives less after-tax AGR than in calendar year 2012; and
    5. Mandates revenue diversions to provide funding for a variety of special purposes, including agricultural programs, State and county fairs, the Cook County Forest Preserve District, natural resource conservation and economic development of depressed communities.
  • Results in an estimated $41 million decline in total recurring gaming revenues in the first year of expansion (according to the Commission on Government Forecasting and Accountability) due to lower tax rates. Total incremental revenues in FY2016 are projected at $334.7 million: Local government revenues of $114.2 million;
    State capital revenues of $20.1 million; State education revenues of $163.1 million; and Other revenues to various State funds of $37.3 million.
  • Results in estimated one-time revenues, excluding amounts bid for licenses, of $1.5 billion: License fees for new gaming facilities of $1.1 million; Position fees for new gaming facilities of $316.9 million; Position fees for expansion at existing facilities of $50.0 million;Reconciliation payments (collected 4 years after new operations begin) of $1.093 billion;
  • These one-time revenues would be used to pay Gaming Board expenses and to pay down outstanding State bills; and
  • The projected $1.5 billion does not include other one-time revenues from bidding on licenses for the four new casinos outside of Chicago or the split of any management contract bid amounts from the operator of the Chicago location.
  • Results in estimated AGR at the Chicago casino of $662 million upon full operation after three or four years: Of this amount, approximately $184 million is paid in tax revenues, including $39 million that would be returned to the City of Chicago as the local government distribution; The remaining $478 million includes the amount that Chicago would pay to the casino operator. This amount is unknown but would presumably be negotiated with the operator; and
    City revenues from the casino would be used for infrastructure and capital-related expenditures.Read the original article…

Have Governor Pat Quinn and Deputy House Majority Lou Lang buried the hatchet?

Quinn and Lang have been at loggerheads over Illinois gaming expansion legislation for more than a year, a dispute that has spilled out in public.

Lang, who backed Quinn in his 2010 primary fight against Dan Hynes, has frequently aired his complaints to reporters over the governor’s negotiating style and subsequent veto of Lang’s prized gaming bill.

But the feud may be easing.

Quinn made a surprise appearance at Lang’s fundraiser in Skokie on Tuesday night and schmoozed with Lang and the crowd, making a strong impression on the Deputy Majority Leader.

Look for the public fireworks to fade.

Legislators will return to Springfield for the veto session on November 27 -29 and December 4-6, and they may be asked to override Governor Quinn’s veto of the massive gambling expansion bill (SB 1849).

With so many forms of legalized gambling in Illinois, why isn’t the State flush with money? Did the Lottery solve the problem of funding education? Do gambling sponsors really believe that nearly tripling the amount of casino gambling will be the “magic bullet” to fully fund education and pay overdue bills? Gambling is an unstable source of revenue.

Legislative sponsors want residents to gamble and lose their money in Illinois. They are not satisfied that Illinois residents are losing money on video gambling machines, recently installed in neighborhood establishments, and that many more applications await approval. They want the governor to cut a “backroom deal” to legalize11 more land-based and racetrack casinos, including a city-owned casino in Chicago that is more than twice the size of other casinos.

Addiction, bankruptcy, crime, child neglect, divorce, and suicide will increase with gambling expansion. For every $1 of revenue gambling interests indicate is being contributed in taxes, it costs taxpayers $3 in social welfare, criminal justice, and regulatory costs. (U. S. International Gambling Report Series, 2009)

Gambling interests promise more than they deliver. Governor Quinn and Legislators have critical issues to deal with during the Veto session, and they have been distracted long enough with gambling expansion that will increase harm. Call your State Legislators (217-782-2000) and ask them to support the Governor’s veto of SB 1849.

According to the 2012 National Survey of American Attitudes on Substance Abuse youth state that beer is the easiest substance to obtain for consumption. Of 1,003 youth who were asked what substances were the easiest for someone their age to get, 24% cited beer. These findings from data are from a random sampling of households in the 48 continental states who had a person ages 12 to 17 living in the household. The survey was conducted by The National Center on Addiction and Substance Abuse at Columbia University (CASA), National Survey of American Attitudes on Substance Abuse XVII: Teens, 2012.

Read the full survey…

• SB 1849 is a massive expansion of gambling that more than doubles the number of casinos in Illinois.
• SB 1849 legalizes a City-owned casino in Chicago with a perpetual license and 4,000 gambling positions—twice the size of other casinos in Illinois.
• SB 1849 legalizes 4 additional land-based casinos in Danville, Rockford, Park City in Lake County, and one in the south suburbs of Chicago. The presence of a gambling facility within 50 miles roughly doubles the prevalence of problem and pathological gamblers, according to a study commissioned by the National Gambling Impact Study Commission.
• SB 1849 legalizing slot machines, video gambling machines, and machines that simulate table games at 6 racetracks, thus transforming the tracks into land-based casinos.
• SB 1849 increases the number of gambling positions at Illinois casinos from 1,200 to 1,600 per casino.
• SB 1849 further expands gambling by including grants up to $7,500 a year for each county fair to conduct wagering on horse racing. Currently only the Brown County Fair has betting on horse racing, and it is not profitable.
• SB 1849 includes a feasibility study of conducting electronic gambling at the State Fairgrounds. The report will include findings with recommendations for legislative action. The State Fairgrounds could then operate a land-based casino 356 days a year.
• SB 1849 lowers the tax rate for casinos. There would be two different tax rates—one for slot/video gambling machines, and one for table games. This would result in less money for the State and more revenue for wealthy casino and track owners.

Gambling interests tend to exaggerate the amount of revenue that will be generated from casinos, and do not include the social costs. The average cost to society per pathological gambler per year is $13,586. (Business Profitability versus Social Profitability: Evaluating Industries with Externalities. The Case of Casinos, pp. 143-162) Crime increases an average of 8 to 10 percent the third year after casino facilities open in a count,y and that crime continues to increase every year thereafter. Professors Earl Grinols and David Muster found that casinos do not just shift crime from neighboring regions, but create crime. (Casinos, Crime and Community Costs, 2006)

For every $1 of revenue gambling interests indicate is being contributed in taxes, it costs taxpayers $3 in social welfare, criminal justice, and regulatory costs. (U. S. International Gambling Report Series, 2009)