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The latest plan to add casinos in Illinois got a hearing in Chicago today as gambling expansion supporters pitched a revised version aimed at winning the elusive signature of Democratic Gov. Pat Quinn.

The plan for a large Chicago casino with up to 10,000 betting positions was separated from other proposals that would add a total of five new casinos across the state.

The move is aimed at blunting arguments that the gambling market outside the city is already saturated with existing casinos and video gambling machines at bars and truck stops. However, peeling a Chicago casino out of a larger package presents its own problems as downstate and suburban lawmakers may be less inclined to vote in favor of the proposal unless they get a piece of the gambling pie.

As it stands, final approval of such a huge expansion has remained elusive for years, and will be only more difficult during an election year. But proponents contend the possible revenue can't be ignored. The state faces a budget cliff if portions of a temporary income tax hike expire on scheduled starting in January, while Mayor Rahm Emanuel is pushing a property tax increase to help shore up the city's struggling pension systems.

Under the new measure, revenue generated by a Chicago casino would be split evenly between the city and state. Chicago could use the money to pay for pensions, education or infrastructure. The state would have to divide the money between education and construction.

"This is an option," said Rep. Robert Rita, a Blue Island Democrat leading gambling negotiations. "These are the three areas where everybody is saying we need revenue."

An Emanuel spokeswoman declined to answer specific questions about the proposal or address whether money from a Chicago casino is a viable source of funding to ease the city's pension woes.

“The mayor does not believe it is appropriate to talk about gaming until we have addressed pension reform,” said spokeswoman Sarah Hamilton. A city pension reform bill is on the governor's desk awaiting action.

The casino bill also includes a number of other changes aimed at winning the support of Quinn, who previously has refused to back various gambling expansion proposals citing a variety of objections. One change would give ownership of a Chicago casino to the state, which would be responsible for issuing bonds to build it. It also would toughen restrictions on campaign contributions from gambling interests and funnel some money to struggling south suburban communities.

An official with the Illinois Gaming Board, which regulates gambling across the state, said the bill contained many improvements but could still be toughened. Caleb Melamed, an attorney for the agency, questioned whether the state should own the casino, noting current law requires a private operator that would be regulated by the state.

Melamed also questioned the size of the Chicago casino, saying 10,000 gambling positions would make it the largest casino in the world and equate to more than eight existing casinos. Rita said the city would have the option of trimming the size.

Lawmakers this afternoon will weigh an alternative proposal which calls for a smaller Chicago casino along with four others in southern Cook County, Lake County, Winnebago County and Vermilion County. That measure would also allow gambling at certain horse racing racks.

Tribune reporter Bill Ruthhart contributed.

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