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Churchill Downs blames prohibitive tax rates that would penalize it relative to competing Chicago-area casinos.
Summary and audio linked here.
Chicago’s political leadership is floating a pension buyout program as evidence it is seriously addressing the city’s thirty-six-billion-dollar unfunded pension liability, but Mark Glennon, founder of the Illinois policy research organization Wirepoints, said that the proposal moves debt from one column to another rather than reducing it, and that the broader fiscal picture facing the city continues to deteriorate across every measurable dimension. Audio here.
Expect no retraction or apology. This what they do.
The state’s existing buyout program for its own pensions is the precedent for Chicago, which should be a warning: Look out for similar exaggerated claims and shoddy analysis.
Full interview and summary linked here.
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In addition to the IL tax policy, IL politicians took forever to allow slots at race tracks (racino) which enables bigger payouts.
So many owners moved their horses out of state in pursuit of bigger payouts.
Instead, IL politicians enabled video gaming just about anywhere else that serves alcohol, a massive expansion of gambling via family restaurants, diners, and video gaming parlors.
Horse racing is still a viable industry with jobs in the United States and in other countries.
Just add it to the long list of the things Illinois state politicians screwed up.
As an aside, I can tell you how IL taxes gamblers. You are taxed at 5% of total gross, not total net. So if your profit margin is 8%, IL gets 5 and you get 3 (minus federal, which only taxes at net). Or worse, you make less than 5% profit margin, you still owe 5% on what you won! And I can tell you that horse racing profit margins for pro-gamblers are already razor thin, as I used to be active in the community. I know most people don’t gamble and don’t care, but just thought I’d share this… Read more »
Horse racing is dead in IL and it’s dying elsewhere. The culture of the old geysers going to the track on Friday nights to bet a few bucks on the horses, drink a few beers and smoke a few cigars is over. The younger generations never really picked up the hobby and they never really did much to reach out to them either. It’s a niche market these days. Kinda sad.