How New Casino Elsewhere Could Be A Win For Des Plaines

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How New Casino Elsewhere Could Be A Win For Des Plaines

Entrance to Rivers Casino in Des Plaines off Devon Avenue. (Journal file photo)

When new casino developments eventually take shape in Illinois, Des Plaines would stand to receive an extra $5 million annually in gambling revenue through 2042.

Language in Senate Bill 690 — a bill that expands gaming opportunities in the state — stipulates that Des Plaines’ contribution of gambling revenue to the state be cut by half when a new casino opens elsewhere in Illinois, according to State Sen. Laura Murphy (D-28th) of Des Plaines.

When Des Plaines was granted approval to host what was intended to be the last casino in the state over a decade ago, a $10 million Host Gaming tax contribution was included as part of the deal, as well as a 40% revenue share with the South suburban communities of Dixmoor, Ford Heights, Hodgkins, Phoenix, Robbins, Harvey, Markham, Riverdale, Summit and Chicago Heights.

According to 2017 figures from Des Plaines Finance Director Dorothy Wisniewski, Des Plaines received approximately $8.8 million in net revenue from Rivers Casino. That year, the city contributed $5.9 million to the South suburbs.

With the expansion of gaming last year, local elected officials became concerned about what it could mean for Des Plaines’ Rivers Casino, which has remained the most profitable casino in the state since it opened. According to the January 2019 revenue report from the Illinois Gaming Board, Rivers generated nearly $25 million more than the second most profitable casino in the state, Harrah’s in Joliet.

With approval of the expanded gaming legislation, a new casino is permitted to open in Bloom, Bremen, Calumet, Rich, Thornton, or Worth townships in or near the South suburbs, as well as Waukegan, Rockford, Danville, Williamson County and Chicago.

In order to protect the revenue Des Plaines receives from Rivers Casino, Murphy and State Rep. Marty Moylan (D-55th) worked to reduce the city’s Host Community Tax contribution.

Murphy told the Journal & Topics she and other local lawmakers are still working to refine language in Senate Bill 690 in regard to the Chicago casino, which she said is expected to generate $1 billion in revenue.

Although Des Plaines can expect to share less in gaming revenue under the new bill, the city still must wait until one of the proposed Illinois casinos begins operating. So far, plans for casinos in Waukegan and Rockford are moving ahead.

Last October, Waukegan heard proposals from four potential casino operators, including Rivers. Waukegan sent three of the proposals to the Illinois Gaming Board and is waiting for approval. Also in October, Rockford approved a casino proposal from Hard Rock Cafe. That casino proposal is also under review by the gaming board.

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