LV casino operators looking at Chicago

Monday, July 9, 2001 | 10:54 a.m.

MGM MIRAGE, Park Place Entertainment Corp. and Mandalay Resort Group are all expressing interest in acquiring a majority stake in a Chicago-area casino development opportunity, Crain's Chicago Business reported.

The three Las Vegas companies are all said to be drafting proposals to acquire a majority stake in Emerald Casino Inc., which has been attempting to open a casino in the suburb of Rosemont, the paper said, citing unnamed sources.

Crain's said Desert Inn owner Steve Wynn is also seeking out local counsel in Chicago.

Both Park Place and MGM MIRAGE have secured local gaming counsel to assist with any deal, the paper said.

The Illinois Gaming Board in January denied the request of Emerald owners Donald and Kevin Flynn to open a casino in Rosemont, citing in part questionable business practices by the men in the past. The move prompted speculation a major casino operator would attempt to acquire the Rosemont license.

"We did engage a lobbyist to look into business opportunities for Park Place in the Chicago area," Park Place spokeswoman Debbie Munch told the Las Vegas Sun. "We looked at (Empress) Joliet and passed, and we've been monitoring what the gaming board is doing in Rosemont."

Munch declined to comment on whether the company was specifically examining Emerald. Horseshoe Gaming Corp. signed a pact to sell the Empress Joliet to Argosy Gaming Co. in April for $465 million.

"Certainly we're aware of the situation in Chicago," said Jim Murren, president and chief financial officer of MGM MIRAGE. "It's a great market, and it's a market we're not in. Obviously we'd be interested in Chicago."

Murren, however, declined to comment specifically on Emerald.

"Someone should surmise we'd have an interest in that market, but there's a lot of ways to tackle Chicago," Murren said.

Mandalay officials couldn't be reached for comment by the Sun. A Mandalay executive told Crain's that the company is monitoring the Rosemont situation, but has not hired local counsel.