A New York City-based developer is interested in purchasing the gaming license for Jumer's Casino Rock Island and relocating the under-performing operation to the south suburbs, the Daily Southtown has learned.
The developer has scouted potential Southland casino sites, including the Country Club Hills location near the intersection of Interstates 57 and 80, where the Southland Development group wants to dock a riverboat, sources said.

Top executives from Rock Island Boatworks Inc. — the family-owned company that operates Jumer's Casino — have confirmed having discussions about selling the license.

State Sen. Denny Jacobs (D-Moline) said people from Florida and New York are among those who made inquiries.

"Could it be done? Yes it could," Jacobs said, adding that the move is a longshot.

If a license relocation were to happen, it would take special legislation similar to the law that attempted to steer a license from the defunct Silver Eagle riverboat in East Dubuque to Rosemont.

That attempt in 1999 unraveled when the Illinois Gaming Board denied a license to key investors because of allegations of mob ties, which raised questions about whether the Legislature went too far by picking a specific location to move the license.

Jacobs said he also would insist the city of Rock Island "be taken care of" with tax revenue to make sure the city's infrastructure didn't suffer because of the move.

The New York City developer's plan would include an agreement to share south suburban casino tax revenue with the city of Rock Island, sources said.

Even with that stipulation, some consider moving the license from Rock Island to the Southland a legitimate "Plan B" if state lawmakers don't approve an additional gaming license.

Country Club Hills Mayor Dwight Welch said that if no new licenses are created, he would push for moving the Rock Island license to his town. But he isn't keen on a working with a new developer, saying his loyalties lie with the Southland Development Group.

"I'm for every opportunity for economic development in Country Club Hills, but right now we support the former owners of the Empress Casino. They are righteous and good people ... I'm with Joe Canfora. He's my guy. Anyone coming in (with a license) would have to use Joe," Welch said.

Boatworks vice president Gary Buettner said selling the license would only be considered if current plans to relocate the casino get caught up in a complicated annexation proposal being considered by the Rock Island City Council.

Boatworks wants to build a new $90 million casino three miles north of its existing location on the Mississippi River in downtown Rock Island.

The plan calls for increasing the number gaming positions from about 740 to the 2,000 permitted by state law. That would boost the casino's paltry revenue, Buettner said.

Still, the casino would not put up "Chicago-area numbers," he added.

The mining company that owns the 115-acre site Boatworks seeks, however, won't sell the land unless the city council gives it mining rights to an adjacent property.

That may prove problematic because that land is located in a levee system that protects hundreds of homes from flooding. Public hearings on the matter are scheduled for this week.

"Our goal is to relocate first," Buettner said. "The whole situation is predicated upon the ability of the city to approve annexation of the land. If that happens, we move to step two. If not, we look at other options.

"We have talked to people about (selling the license). ... I don't think I'm ready to comment on (possibilities)."

But it's clear the other possibilities include hawking the license — which would be more valuable if lawmakers don't create new casino licenses — to the highest bidder.

And moving the license to the south suburbs would produce much more revenue than Rock Island, advocates of the move say.

In 2002, according to the Illinois Gaming Board's annual report, the Rock Island casino pulled in $40 million in adjusted gaming revenue. Illinois' most profitable casino, Elgin's Grand Victoria, pulled in $405 million, while Joliet's Harrah's brought in $315 million that year.

If the Jumer's Casino relocation doesn't get city approval and casino revenue doesn't improve, the political reality is lawmakers at some point could recommend moving the license to a more profitable place themselves, Jacobs said.

Separately, Jacobs said he's reworking a gambling expansion bill that would create two new casino licenses — one specifically for the south suburbs and a second for "north of Cook County."

That bill would be similar to last year's expansion proposal, which was killed by Gov. Rod Blagojevich's threat to veto any new casino licenses.

Friday, Blagojevich said he's still "not advocating" gaming expansion, but he left the door open for proposals by adding he would "not dismiss it out of hand without specifics."