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Illinois Calls Off Casino Probe

19 May 2004

ILLINOIS – As reported by the Chicago Tribune: "Gov. Rod Blagojevich's administration said Tuesday it has placed on hold for the foreseeable future an independent investigation of the Illinois Gaming Board's decision to award a casino license to suburban Rosemont and Mississippi-based Isle of Capri Casinos Inc.

"Several weeks ago, Blagojevich had announced with great fanfare that former Justice Department official Eric Holder was going to conduct 'a full, open and public review' of the board's March decision on the state's last casino license.

"But the administration said it told Holder last week to 'stand down,' Blagojevich spokeswoman Cheryle Jackson said, after Atty. Gen. Lisa Madigan announced she intends to resume administrative hearings aimed at stripping the license from its current holder, bankrupt Emerald Casino, which effectively could kill the sale to Isle of Capri.

"…But with Isle of Capri expecting to score a victory Wednesday in federal bankruptcy court, where a judge has indicated he will allow the sale to go through, it's unclear exactly what is going to happen.

"The governor's office said it is monitoring the situation in bankruptcy court and if it believes Isle of Capri is still moving forward with the purchase despite Madigan's efforts, Blagojevich will ask Holder to begin his investigation then…"

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