Four Illinois casinos sue

Four Chicago-area casinos have sued to overturn a new state law signed by Gov. Rod Blagojevich that requires them to fork over tens of millions of dollars to the struggling horse-racing industry.

The four riverboats--Empress Casino and Harrah's in Joliet, Hollywood Casino in Aurora and Grand Victoria in Elgin--argue in the suit filed Tuesday in Will County Circuit Court that the law is unconstitutional and an unjust tax aimed at supporting a competing gambling interest.

The law, signed Friday, imposes a 3 percent surcharge--estimated to total $36 million annually--on the adjusted gross receipts of each casino.

The horse-racing industry is supposed to give $20 million to breeders and horse owners in the form of larger racing purses, and the other $16 million is to be used to upgrade tracks and market the industry.

The money would be divided among the five Illinois tracks that hold horse races, four of which are in the Chicago area.

The four casinos have paid the tax in protest, meaning the money is being held in escrow until there is a legal resolution, said Marc Laino, executive director of the Illinois Racing Board.

Laino said the legislation for the tracks was "long overdue." In 1999 the state legalized dockside gambling on riverboats, and the legislation tied benefits for the horse-racing industry to the opening of the state's 10th casino.

That casino, the Emerald, never opened and the company's owners had their license revoked last year.

"The racing industry was promised a portion of the proceeds from the 10th license," Laino said. "That never came to fruition, but the casino industry has received all sorts of benefits. This new legislation provides some relief." (Chicago Tribune)

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