Friday, December 14, 2007

Illinois Gambling Expansion stalls in wake of indictments

The Daily Herald reports:
The political fallout from the indictment of Gov. Rod Blagojevich's friend and gambling adviser began today as a potential vote next week on a massive state gambling expansion was canceled.

House Speaker Michael Madigan, a Chicago Democrat, sent a letter to lawmakers saying "in light of subsequent developments this week, the legislative process will be better served by holding session on these topics at a later date."

Just a few days ago, Madigan told lawmakers to be at the Capitol on Dec. 17 and to expect to consider gambling expansion and a possible bailout of Chicagoland's bus and train agencies in the following days.

But on Thursday federal prosecutors indicted Chris Kelly, a South suburban roofing contractor and close personal friend of the governor, on charges stemming from alleged illegal betting and breaking the law to conceal gambling debts. Blagojevich had tapped Kelly to work on past gambling policy and Kelly also has been a top fundraiser for the governor.


In canceling the upcoming session, Madigan said the situation underscores the need for tighter gambling regulation and a "genuinely independent Illinois Gaming Board," and criticized the governor for not endorsing such plans in recent days.

"To say the least, this is a puzzling state of affairs," Madigan said in the letter, urging lawmakers to encourage the governor and others to support such reforms, "so that gambling in this state may operate in a completely above-board manner and without the slightest hint of impropriety, scandal or corruption."

In response, a spokeswoman for Blagojevich tried to steer focus back to the looming financial deadlines for the transit agencies. "Sadly, it's not surprising that Speaker Madigan would, at the last minute, cancel a scheduled session to consider a plan to fund the CTA," spokeswoman Abby Ottenhoff said in an e-mail to reporters.

She indicated the governor plans to use his powers to order lawmakers back to the Capitol next week regardless.
John Kass in the Chicago Tribune has an interesting comment:
Here's a rhetorical question for enterprising FBI agents and IRS investigators: Did Kelly just start gambling when he became Blagojevich's companion and top fundraiser and casino point man? Or was he gambling heavily before then?

Who helped him get those lucrative contracts? Given we're in Illinois, which is like Brigadoon only more legit, he probably just put in a bid like any other square and crossed his fingers and was amazed his companies won the contracts.


But is it possible there might have been influence exerted on his behalf -- perhaps with Kelly not even knowing -- so that he'd make a great living off public contracts, with plenty of cash coming his way, a constant revenue stream available to his bookies?

That's pure speculation, yes. But I've been watching politics for years, and it's legitimate speculation. And if I had federal subpoena power, I'd sure want to know.

For some strange reason, some big-time gamblers seem to have little trouble opening new businesses. They get the right government licenses. Business comes their way. Sometimes, it turns out that the business owner isn't working for himself as much as he's slaving 100 hours a week for the guy behind his bookie.

Prominent bookies aren't interested in putting cabdrivers on juice. What can a busted cabdriver offer when he can't pay? Breaking legs is not only old school -- it invites prison, with all the federal heat from the Operation Family Secrets trial.

But a political type with the gambling sickness, a fellow who can whisper directly into a top politician's ear about state tollway deals or city real estate developments, a guy like that might be worth something to the guys behind the guys. It's the Chicago Way.

Federal authorities were asked about the unidentified sports-book operators in Kelly's indictment, and whether Kelly's bookies were completely independent of the Outfit.

"I believe the indictment simply says that they were bookmaking operations in Illinois," Fitzgerald said. "It doesn't specify if they were legal or illegal. I'm not going to go beyond the indictment."

OK, if he won't, I will. The last bookie who insisted he was completely independent of the Outfit was Hal Smith. His body was found in the trunk of his car. He'd been stabbed and strangled in February 1985. Since then, the completely independent bookie movement kind of fizzled.
Very interesting things to ponder.But,here's one more:did a certain public official close to Chris Kelly pay a street tax to the Elmwood Park crew of the Chicago Outfit(years ago)??