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Illinois' Casino Saga Filled with Missteps

ILLINOIS – As reported by the Chicago Tribune: "With his apparent decision to revamp the Illinois Gaming Board, Gov. Rod Blagojevich has set into motion only the latest in a series of promises by Illinois politicians to make sure that the gambling industry can flourish with integrity.

"Five years ago this coming Friday, it was then-Gov. George Ryan making what seemed like an even grander gesture. He stood on the banks of the Mississippi River and signed landmark legislation that virtually guaranteed the state's most lucrative casino for northwest suburban Rosemont while also appointing tough-minded former federal prosecutors to the board and its staff.

"No one realized it at the time, but the appointments led to the undoing of the Rosemont deal, setting in motion one of the state's longest-running political, legal and regulatory melodramas with a story line that is both compelling and confounding. And there's no end in sight.

"Since then, the Emerald Casino has turned from the glimmering jewel that was going to make its investors rich and state coffers brim with tax revenue into a worthless shell overlooking the Tri-State Tollway. It has spawned a plethora of legal and regulatory battles, disappointed state leaders who long for the tax revenue to start flowing from what should be a gold mine, and triggered fights among political rivals competing to be seen as the one to solve the mess.

"...Obscured in all the wrangling has been this simple fact: Riverboats are typically cash cows that generate hundreds of millions of dollars annually in revenue, but the Emerald license is a hand-me-down from the only casino to ever flop in Illinois. It has been inactive since 1997 and hasn't produced a penny since then for its owners or the state.

"…The plan to move the casino to Rosemont could not stand, the board determined in a 4-1 vote three years ago.

"The fate of the Emerald and its license has languished ever since.

"Rosemont forced Emerald to declare bankruptcy, largely because it couldn't pay the suburb $45 million it spent on a parking garage for the casino. Emerald has sued the board. Federal investigators have subpoenaed records from the board for an investigation that is apparently still ongoing.

"When Democrats swept into control of state government last year, party rivals Blagojevich and Lisa Madigan, the new attorney general, both seized on the Emerald issue--though initially in different ways…"

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