Illinois
A proposed major expansion of casino gambling in Illinois won’t make it on the books. Blocking the proposal’s second attempt at approval, in a 55–47 vote legislators recently shot down Gov. Rod Blagojevich’s plan to fund a $34 billion state infrastructure rebuilding plan with casino tax revenues. The money would have been generated by three new casinos, the expansion of existing casinos and the addition of slot machines at horse racing facilities. The infrastructure revamp—including rebuilding aging roads, bridges and schools—may still forge ahead with a different, yet to be determined source of funding. Some legislators noted that although they aren’t opposed to expanded gambling per se, they do not trust the governor to handle the funds appropriately.
The state of Illinois is putting its 10th casino license on the auction block. Long subject to lawsuits and scandals ranging from alleged organized crime connections to political tampering, the license that would have brought the Emerald Casino to Rosemont will now be reissued. With an asking price estimated at $400 million to $500 million, Country Club Hills, a finalist during the initial award process of the license, has already expressed its interest in trying again this time around. If successful, a casino would be built at the busy intersection of Interstates 80 and 57. Summit, a suburb of Chicago just south of Interstate 55, has also indicated its interest in the license. Waukegan and Des Plaines are also considered likely contenders. It is also possible for Rosemont to re-bid for the license, or file a lawsuit claiming ownership. Credit Suisse Securities LLC will handle the bidding process.
New Jersey
The New Jersey Casino Control Commission’s (NJCCC) non-renewal of the Tropicana Atlantic City’s gaming license has been affirmed and upheld by a New Jersey appeals court. The decision sets a legal precedent for the NGCCC to use its own discretion when denying license applications. Tropicana Entertainment had argued that regulators had stepped out of bounds of their authority and jumped to conclusions without evidence to back them up, among other allegations. The court disagreed in a 44-page ruling, stating that the commission not only acted appropriately, but did so with plenty of concrete evidence. The judges also took particular note of Donna More, the Tropicana’s general counsel and a former Illinois casino regulator, stating, “With her background, a succession of inadvertent regulatory missteps should not have been the norm.”
Pennsylvania
The Pennsylvania Gaming Control Board has denied a request by the developers of the Valley View Downs racetrack in Lawrence County to grant a Conditional Category 1 slots gaming license prior to the completion of its background investigation and suitability hearing. The unanimous decision does not, however, deny the application by Valley View Downs, a subsidiary of Centaur LLC, a slots gaming license in the future. Rather, the decision simply upholds the board’s belief that background investigations of those persons who control the license must be completed prior to licensing a casino facility.