Prairie State Wire

Welcome to Swamp Tours, a new weekly column written by a veteran Springfield observer and insider. Send feedback to staffreports@lgis.co.

Corrupt Gov. Rod Blagojevich learned politics in the 33rd ward office. His mentor/father-in-law was Alderman Dick Mell, a man capable of squeezing the juice out of everything the government touched.  Jobs, contracts, and finder-fees were the trade stock for 20th century Chicago alderman, and no one relished the caricature more than the man known as the "old Gringo.”

What people forget about Blagojevich is that he spent time in Springfield as a state representative.  He observed and learned from his House Speaker Michael Madigan, and they built a relationship. He also made friends with the Springfield Combine, both the power brokers who controlled the money and the staff who would be ready to assist his eventual statewide campaign.  

Most of the regular Democratic ward township and county organizations in the non-majority African American areas of Illinois endorsed Blagojevich in 2002 for governor along with Madigan’s daughter, then-State Senator Lisa Madigan, for attorney general. Organized labor supported both as well. The relationships forged with Madigan and others a decade earlier allowed for cooperation in the 2002 Democratic Primary to secure victory for both of them.

Madigan co-chaired Blagojevich's 2006 re-election campaign, and as the second term commenced, the two men seemed to understand that Illinois was big enough that neither needed to eat alone.  That is, until Rod got his “golden ticket” and the Feds came down on him like a ton of bricks. Bye-Bye Rod.

Madigan soon realized he was the one holding the golden ticket. Perennial light-weight Pat Quinn became governor when Blagojevich was impeached in December 2008. Within the year, State Senate President Emil Jones retired, allowing Madigan crony John Cullerton to replace him. By the spring of 2010, Quinn was focused on a capital spending plan to win favor with the trade unions and secure financial help in the fall elections. 

 It was then that Madigan decided to cash his golden ticket in.

Unlike the federal government, which can print whatever money it desires, states theoretically need to make ends meet or they will run out of cash. When a state borrows by issuing bonds, it must identify a revenue source (i.e., gas tax, tolls, etc.) that will be tapped to pay off the loan.  

For his capital bill, in an already highly-taxed Illinois, Quinn needed new revenue sources. Madigan was Mike on-the-spot, offering an entirely new industry that would provide just that -- video poker.

Then-Cook County Assessor Joe Berrios also forged a relationship with Mike Madigan when they were colleagues in the legislature. When Joe left the General Assembly, the ties became financially beneficial to both, with Joe working as a contract lobbyist in Springfield and serving on the Cook County Board of Tax review where he could generously help Madigan's clients. As they say in the old country, it was a lovely arrangement.

One of Joe's top clients was the "amusement" industry -- or the guys who provided the illegal video poker machines to Illinois bars. The industry started seriously clouting up, also hiring Berrios’ pal, former southeast side state legislator Sam Panyonovich, as well as former Madigan political director Tom Cullen and Combine stalwart and veteran lobbyist Zack Stamp. 

For almost a decade, they all bided their time. The industry continued paying protection money to local authorities to keep their devices operating, while waiting for state lawmakers to make their illegal businesses legal.   

It would be a new industry run by crooks (they were using illegal machines at the time) who were willing to be guided and advised by lieutenants in the Madigan Mafia. This deal was f'ing golden.

Video gaming became legal in Illinois in 2010, and with the wave of Madigan’s magic wand, illegal operators all became legitimate businessmen. They continue to employ Berrios, Panyanovich, Stamp, and Cullen, but now they have many more mouths to feed.  The industry also employs Madigan consigliere Mike Kasper, longtime Madigan cronies Will Cousineau, John Lowder, Mike Bond, Mike Noonan, and Mark Poulos as well as GOP combine all-stars, former state senators turned lobbyists Dave Sullivan and Matt Murphy.

That's how it works with Mike Madigan. Pass a law to benefit the cronies' clients, then milk the new industry for all its worth.  

Did I mention that the video gaming in Illinois now generates over $750 million for the crooked operators whom Madigan made legit? And it gives large sums to Madigan in “political contributions.”  

Oh yeah, one last thing. Guess who the industry's favorite insurance broker is? That's Andrew Madigan, the speaker’s only son.  

In 2010, Madigan's ticket was video poker, and it was f'ing golden.

Read previous Swamp Tours below:

• Swamp Tours: Power Corrupts. Absolute power corrupts absolutely

• Swamp Tours: You can take more with a briefcase then you can with a gun

• Swamp Tours: On Team Madigan, ‘If it ain’t white, it ain’t right’

• Swamp Tours: That which is known need not be spoken