Binion agrees to leave Illinois casino industry

Charles Sheehan

Wednesday, Jan. 31, 2001 | 10:26 a.m.

CHICAGO -- The chief owner of Joliet's Empress Casino agreed to sell its share in the gambling boat and move its headquarters out of state within 120 days, the Illinois Gaming Board announced Tuesday.

Four board members approved a settlement with Empress in which Horseshoe Gaming Inc. Chief Executive Jack Binion would disassociate himself with gaming in Illinois. The board last summer denied a license renewal to the Empress after declaring Binion unfit to run the casino.

Staff investigators said they had uncovered questionable business practices and compliance issues involving Binion in Nevada, Louisiana and at the Joliet casino. Binion had appealed that decision and it was to go before an administrative law judge next month.

Board member Joseph Lamendella was the lone dissenter on Tuesday and promptly resigned from the board, saying Binion should either be barred from gaming immediately or be allowed to operate in Illinois indefinitely.

"Whether it's 90 days or 90 minutes is irrelevant," Lamendella said.

Later, gaming board spokesman Gene O'Shea said Lamendella's resignation was not connected to either the board's deal with Binion or its vote Tuesday to deny a license for a casino in Rosemont.

"He made it clear his actions were in no way related" to either vote, said O'Shea.

In a deal worked out over several months, Horseshoe Gaming agreed to dissolve economic and executive ties with Empress, and the casino will seek bids on Horseshoe's share.

Horseshoe Gaming will be forced to move its headquarters out of the state within 120 days.

If the sale of Binion's interest in Empress is agreed to but not closed within 150 days, a temporary five-person board will be established to run operations at the casino.

But if a continuance is not allowed by the board after 150 days, Empress Casino agreed to pay a $2 million fine and pay $10,000 per day afterward until a sale is approved.

According to Horseshoe attorney William Kunkle, Empress says that the sale of Binion's interests should not be difficult.

Binion owns controlling interest in Horseshoe Gaming, which bought the Empress casinos in Joliet and Hammond, Ind., for $629 million in 1999.