Ill. board continues talks on Rosemont

Nicole Ziegler Dizon

Wednesday, Feb. 27, 2002 | 9:49 a.m.

CHICAGO -- Neither federal investigations nor political promises are going to stop the Illinois Gaming Board from considering all options in a legal fight over a proposed casino in Rosemont, board administrator Philip Parenti said Tuesday.

"Right now the gaming board's trying to do its job. It's not going to be deterred by any subpoenas, and it's not going to be deterred by any politics," Parenti said after the board's monthly meeting.

The administrator has been meeting with representatives of Emerald Casino, its investors and lawyers to talk about the possible settlement of a case involving the board's denial of a license to the company.

The gaming board rejected Emerald's license application a year ago, alleging that top officials had lied to investigators and that some investors were tied to the mob. The company appealed.

Since that decision, Gov. George Ryan has replaced four of five board members. Parenti was hired as administrator in November, and he said members instructed him to resume stalled negotiations with Emerald.

He put together a proposal to let Las Vegas casino giant MGM MIRAGE buy the license for about $600 million, with Emerald paying more than $150 million back to the state.

That proposal got leaked to the media before he was done negotiating, Parenti said.

"This is not some kind of consummated settlement, and the board has yet to fully consider all the ramifications of it," he said.

All six candidates for Illinois governor say they oppose any deal that would let Emerald officials profit.

In addition, a federal grand jury issued a subpoena to the gaming board last month demanding all records relating to the Emerald proposal. Federal prosecutors have declined to comment on the request.

Parenti said Tuesday that state and local government stands to lose $150 million a year in tax revenues for each year the Emerald case is tied up in court. More than $60 million of that would be diverted to the horse racing industry under state law.

Jack Roeser, president of the Family Taxpayers Foundation, told the board that politically connected investors and racetrack owners should not be allowed to profit from a Rosemont casino. He urged the board to let the case play out.

"These are gamblers," Roeser said of the Emerald investors. "Let them take their losses and say goodbye."