Expert: Illinois casino expansion would force closure of 1 or 2 in NWI

Gambling analysts say an Illinois casino bill — one awaiting Gov. Pat Quinn’s signature — could force the closure of Northwest Indiana casinos.

The bill expands Illinois gambling by allowing for casinos in Chicago, the suburbs and downstate, as well as slot machine permits at racetracks and Chicago airports.

Ball State University professor Michael Hicks, who studies casinos and racinos, said the impact on Northwest Indiana casinos would be devastating if the bill is signed into law.

“The Illinois casino package will really clobber Lake County gambling,” Hicks said. “The closure of one or two will be very likely.”

Quinn admitted some ambivalence about the scope of the bill, saying a Chicago casino has his support but the rest of the bill is “excessive.”

Indiana state Rep. Charlie Brown, D-Gary, is waiting to see what Quinn does with the bill.

“If this stays as is, it’s going to be devastating to Northwest Indiana,” Brown said. “I maintain it is still going to do harm to the existing boats out there, so it’s going to be interesting over the next few days what the governor’s decision is.”

Any casino losses would also be felt in the communities that receive gambling money.

“(If closed) the property values of the casinos will plummet significantly as would the property taxes of that property and surrounding properties,” Hicks said.

The tax revenue returned to the county would drop as well.

Ed Feigenbaum, editor of Indiana Gaming Insight, said he’s doubtful the Chicago area can support another casino. Hicks agreed it’s not a huge market in terms of players.

“I’m surprised the casino operators haven’t risen up and said this would hurt them,” Feigenbaum said.

Ameristar Casino senior vice president of government relations and public affairs Troy Stremming said that he was shocked by the massive expansion of gaming in the bill.

“It’s still in Gov. Quinn’s hands,” Stremming said. “We’re in somewhat of a wait-and-see mode right now.”

Stremming said that the bill may force Ameristar to re-evaluate its investment in the Cline Avenue bridge replacement.

“We’ve evaluated the detrimental impact on the casino through the loss of the bridge,” Stremming said. “It’s really difficult since all of the pieces aren’t in place.”

Hammond’s Horseshoe Casino, which claims that 90 percent of its customers come from Illinois, would be hit particularly hard by Illinois casinos, especially by one proposed to be built in the south suburbs, Hicks said. And it wouldn’t take long for the boats to get up and running; construction usually takes a year or two.

“A Chicago casino wouldn’t attract the same people who go to Northwest Indiana,” Feigenbaum said. “Those who come here don’t want to go downtown, don’t want to worry about parking and paying an exorbitant price for it.”

Some casinos in Northwest Indiana may decide to give up a license in Indiana for Illinois, Hicks said. He said he believed Majestic Star Casino would bid for one of the Chicago locations and close one of its two casinos at Buffington Harbor in Gary.

Staff writer Chelsea Schneider Kirk contributed to this report.