Thursday, July 27, 2000 | 9:39 a.m.
Citing a pattern of rule violations and other problems at Binion's casinos in Illinois, Louisiana and Nevada, the board last month deemed Binion unfit to hold a license in Illinois.
Horseshoe Gaming is asking for a hearing before an administrative law judge to argue for a license.
"We will provide clear and convincing evidence that Horseshoe Gaming and its chairman and CEO Jack Binion are highly suitable to hold an Illinois gaming license," said William Kunkle, a Horseshoe attorney and former chairman of the gaming board.
The board listed 19 specific instances that it said justified its June 30 decision to reject Binion and not renew the license for Empress. Examples included past controversies for which Binion has been investigated - and in some cases fined - in other states, as well as new accusations alleging problems since Horseshoe bought the Empress in November.
In a seven-page letter to Binion and Empress, the board said Binion has demonstrated "an inability or unwillingness to comply with and act in accordance with statutory and regulatory requirements concerning the gaming industry."
"He has also demonstrated a propensity to enter into highly irregular contracts and financial and business relationships that cannot be adequately justified and show a lack of financial integrity," the letter said.
In its petition for a hearing, Horseshoe contends the report the board relied on to make the decision was not prepared by its staff but by an outside law form that did not conduct an independent review or investigation.
The company also claims the issues cited by the board were related to matters in other states and were known by the board when it approved Horseshoe's purchase of the Empress Casino last year. The company says the issues were investigated by those states, and Horseshoe and Binion retained their licenses.
Binion owns controlling interest in Joliet-based Horseshoe Gaming Holding Corp., self-described as the nation's largest privately held gambling company, and he is considered an integral part of its five-state operation. The company has 9,000 employees, 2,500 from Illinois, and annual revenue of approximately $1 billion.
Binion and the company are approved to operate his other casinos in Indiana, Louisiana, Mississippi and Nevada.
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