Casino Gets A Reprieve

SPRINGFIELD -- In a last-minute legislative maneuver, Casino Rock Island was spared from the brunt of new gaming-tax increases proposed by Gov. Rod Blagojevich.

The Rock Island boat long has been one of the least profitable in the state. While some other Illinois casinos have adjusted gross receipts of more than $250 million, Casino Rock Island raked in about $40 million last year.

``People think that is how much we make,'' said Ron Wicks, president of the Casino Rock Island. ``That's simply how much our gross revenues are before we pay our employees and take care of our other expenses. I can tell you our return on our investment is somewhere less than 10 percent.''

Saturday, the Senate endorsed a measure that greatly increases the taxes paid by the state's nine riverboats. In fact, boats with adjusted gross receipts greater than $250 million will see their top tax bracket rise from 50 to 70 percent.

For a smaller operation, like Rock Island, the top rate it would pay would rise from 22.5 to 32.5 percent. The state now charges a casino $3 for each patron who crosses a gangplank. Through a last-minute legislative maneuver engineered by Sen. Denny Jacobs, Casino Rock Island was exempted from an admission-fee hike that will affect all other casinos in Illinois.

Other casinos will see their admission fees increase to either $4 or $5, depending on the size of the operation, but Casino Rock Island's admission fee will remain at $3. Tom Schafer, a spokesman for Gov. Blagojevich, said the governor plans to sign the measure, which has been endorsed by both chambers of the legislature.

The higher tax brackets and increased admission fee on all of the state's casinos would generate an additional $200 million for the state. The higher tax rates on revenue would expire in two years, or when a 10th riverboat casino opens in Illinois. Admission fees would remain at their elevated levels.

Mr. Wicks declined to say whether this would have been the case. But he noted that the Quad-Cities has a far more competitive gambling market, with three floating casinos, than other places. He noted there is one gaming position for every 75 people in the Quad-Cities. In the Chicago market, he said, there is one gaming position for every 2,000 people.