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Emerald Casino Shareholders Offer To Give Up Profits

"All 61 Emerald shareholders would recoup their original investments, and the state would keep all profit from Emerald's proposed sale to MGM, according to the minorities' proposal, which they say could be the sweetener that gets the Illinois Gaming Board to approve the controversial $600 million-plus deal.

"…Emerald's majority shareholders and executives were noncommittal Wednesday. They include Kevin and Donald Flynn, whom the Gaming Board accused of making misleading statements when it rejected the Rosemont casino last year. The board also alleged two casino investors and a construction contractor had ties to organized crime. Emerald denied all the charges and sued the board.

"…The minorities don't feel the dollar values Emerald management is proposing are enough to atone for its alleged previous sins. Renouncing profit from the transaction `is the most expeditious means of clearing the way for a casino to come online, for the state to maximize its revenue, and for minority and female shareholders to realize their business ambition,' said Grayson Mitchell, a spokesman for the 21 minority investors.

"…The minority investors, who are helping Emerald meet a 20 percent minority ownership standard required by state law, wrote that they put up a total of $32 million in 1999 `in a promising gaming venture with long-term potential of becoming a successful business enterprise.'

"…Under any proposed sale, only the black, Hispanic and female shareholders could buy back in. And while the amount they would need to reinvest would increase under their proposal, minority investors would rather deal with that issue than lose their original $32 million…"

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