HAMMOND | The city of Hammond's budget is boosted each year by about $36 million in casino tax revenue. That money is in danger after Illinois state lawmakers approved plans to build casinos in Chicago and its suburbs.

Similar efforts have failed in years past, but the Illinois General Assembly authorized a plan Tuesday for a casino in Chicago, two in the suburbs and slot machines at O'Hare and Midway airports.

It's not clear if Illinois Gov. Pat Quinn will sign the bill. He has criticized portions of it during past public appearances.

Approval of the plan could affect traffic to Hammond's Horseshoe Casino and the tax revenue that the city relies on for home ownership programs, police overtime and dozens of road and infrastructure projects each year.

"It will have an impact on gaming revenue, no doubt about it," Hammond Mayor Thomas McDermott Jr. said. "But we're still the best product on the lake. To go from where it is now, to zero, is naive."

Hammond's 2011 budget uses $36 million of casino-related revenue.

That revenue has been "steady and predictable," City Controller Bob Lendi said.

Of that, $3.5 million goes to the Northwest Indiana Regional Development Authority, $900,000 to the Regional Bus Authority, and more than $1.2 million for costs associated with buying and closing the River Park Apartments.

There's also money budgeted for vehicles, overtime for police and tax credits for senior citizens.

What's left is about $27 million for six council members and the mayor. The council members who represent districts each get 10 percent to spend on public safety or infrastructure projects. The three at-large council members aren't included in allocations.

The mayor gets to spend 30 percent, and the final 10 percent is in a shared pot of money for council members and the mayor. East Chicago, Gary and Michigan City have similar revenue-sharing agreements with their lakefront casinos, but Hammond's is the most lucrative.

"The biggest impact felt will be on the number of projects done. I imagine it will cut into capital we do in Hammond, and we do a significant amount of capital projects," McDermott said. "Maybe instead of three or four projects, maybe (council members) get three or two projects."