Originally, riverboats were required to cruise during gambling, but dockside gaming was approved in 1999. The first full year of dockside casino gambling occurred during 2000.
According to the American Gaming Association, in 2004 nine riverboat casinos were operating within the state: two on the Fox River and two on the Des Plaines River near Chicago in the northeast part of the state, one on the Illinois River in the central part of the state, one on the Ohio River in the south, and three on the Mississippi River to the west. Illinois riverboat casinos generated $1.71 billion of adjusted gross revenue (gross receipts less winnings) in 2003, a 6.6% decrease from 2002. (See Table 4.6.) The vast majority (85%) of 2003 revenue was from electronic gambling devices. The remainder was from table games. Admissions were 16.6 million in 2003, down 11.8% from 2002.
Illinois casinos are levied an admissions tax and a wagering tax. In 2002 the state legislature increased the admissions tax from $2 per patron to $3 per patron. In 2003 the admissions tax was increased to $4 per patron for casinos admitting 1–2.3 million patrons per year and to $5 per patron for casinos admitting more than 2.3 million patrons per year. Also in 2003 the legislature established a new rate structure for wagering taxes based on adjusted gross revenue (AGR). The rate begins at 15% for casinos with AGR less than or equal to $25 million and increases with increasing AGR. Casino taxes are shared by the state and local communities in which casinos are located. According to the 2003 Illinois Gaming Board Annual Report, during 2003 the casino industry paid $617.8 million in state taxes and $102 million in local taxes.
The state's tenth casino license has been dormant since 1997. Although Emerald Casino, Inc. has applied for renewal several times, the applications have been denied for a variety of legal and regulatory reasons. In 2001 the Illinois Gaming Board denied the company's latest bid for renewal following allegations that company owners were associated with known members of organized crime. The company was also accused of violating Board rules and providing false information about its operations. In 2003 the company was forced to file for bankruptcy. As part of its reorganization plan it was agreed that the casino would be sold and top company managers would be banned from the state's casino industry.
The controversy did not end there. In March 2004 the Illinois Gaming Board agreed to allow Emerald Casino to sell its gaming license for $518 million to Isle of Capri Casinos, Inc. The new company announced plans to build a casino in the town of Rosemont, a suburb of Chicago. Although the mayors of Rosemont and Chicago were in favor of the deal, it was vigorously opposed by state officials. The Illinois attorney general launched an investigation amid allegations that the licensing deal was approved by Gaming Board directors despite strong objections from Board staff members. The attorney general sued the Board seeking a halt to the license review process. As of November 2004 the issue had not been resolved.
In May 2004 Chicago Mayor Richard Daley announced his plan to ask the state legislature for permission to build a city-owned land-based casino in downtown Chicago. In response, Governor Rod Blagojevich announced that he would veto any such legislation.
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