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Emerald Casino Deal Expected

ILLINOIS – As reported by the Chicago Tribune: "Illinois Atty. Gen. Lisa Madigan was expected on Thursday to unveil a deal reached with the bankrupt Emerald Casino that is aimed at freeing up the firm's unused casino license for sale to another gambling operation, according to sources close to the negotiations.

"But questions remained about whether the agreement will finally get a 10th Illinois casino up and running and generating revenue for the cash-starved state.

"Rosemont, where the Emerald was to have been located and which claims to have spent tens of millions of dollars preparing the way, has not agreed to the deal and is not guaranteed any money from it, the sources said. That omission could lead to lengthy delays in implementing the agreement if the village chooses to challenge it in court.

"…Under the settlement, Emerald's principal shareholders, Donald and Kevin Flynn and other Flynn family members, have agreed to forfeit more than half of the $41 million they would have received under previous settlement deals, the sources said. When the license is eventually sold, proceeds will be distributed among investors, creditors and the state.

"…With the deal, Madigan appears to have wrung significant concessions from the Emerald group, which at one point had threatened to hold use of the license hostage in court proceedings for years, denying the state much needed revenue.

"…Though Madigan may score political points for hanging tough in negotiations, the lack of an agreement with Rosemont could hinder quick implementation of the deal. Rosemont claims it is owed more than $100 million for money it lost or spent on the casino project, including $45 million to build a parking garage…"

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