Illinois court rules Chicago casinos must pay surchage to tracks

The Illinois Supreme Court on Thursday ruled that the four casino riverboats in the Chicago area must pay a surcharge to the racetracks, reversing an earlier decision that said the casinos were unconstitutionally targeted by a 2006 law that required they pay three percent of their receipts to the tracks.

The four casino boats had previously alleged the bill—that applied only to casinos with more than $200 million in annual revenue—unfairly left out five less lucrative boats. While the case was being adjudicated, the four casinos paid $79 million, which has been held in escrow.

Included in their arguments, the casinos alleged the surcharge violates the state Constitution because the money goes to private parties instead of using it for the public good, but the Supreme Court ruled that the Legislature can determine the public good.

“While it may be true that all casinos might be able to incorporate a surcharge into their services and pass the charge along to customers, this does not mean the casinos are identical,” wrote Justice Ann Burke.

The law provides that 40 percent of the casino money will go the racetracks and 60 percent to purses.

The casinos could ask the state Supreme Court to reconsider its ruling, or they could appeal to the U.S. Supreme Court for a review.

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