Park Place eyes Chicago project

Wednesday, Jan. 30, 2002 | 11:02 a.m.

Park Place Entertainment Corp. officials said Tuesday they are interested in pursuing a gaming license in the Chicago suburb of Rosemont -- a license that competitor MGM MIRAGE is also trying to acquire.

But Park Place Chief Executive Tom Gallagher said such an effort isn't likely to include a buyout of the current license owners, a concept Gallagher called "flawed."

MGM MIRAGE has apparently agreed to a deal to acquire the Rosemont license as part of a $615 million buyout of Emerald Casino Inc. That pact is now pending before the Illinois Gaming Board.

Emerald was denied in its bid to open a Rosemont casino because of concerns regulators had about the candor of Emerald's majority shareholders, as well as the alleged involvement of mob-linked construction companies in the construction of the Emerald casino. The MGM MIRAGE buyout would include a $160 million fine to settle these complaints.

However, the MGM MIRAGE-Emerald deal is drawing political fire in Illinois, and two of the five members of the Illinois board are reportedly against such a pact. In the past, the board has demanded that the Emerald license be turned over to the state, which could then award it to another company.

Gallagher told investors and analysts Tuesday that Park Place had looked at the possibility of buying out Emerald.

"We looked at what was going on when the Flynns (Emerald's majority shareholders) tried to run their auction and in the end concluded it was a flawed process that was going to result in problems with the gaming board, so we withdrew from the auction and didn't make a bid," Gallagher said.

Gallagher then hinted that Park Place could re-emerge in the pursuit of Illinois' 10th casino license if the MGM MIRAGE deal is blocked by Illinois gaming regulators.

"I don't for one minute concede that anyone has a lock on what's going to happen in Illinois," Gallagher said. "I think we, if anything, may be better positioned because of the decisions we've made throughout and the manner in which we've dealt with the gaming board.

"Don't hold your breath, but I like the position we're in ... in the hunt with regard to whatever happens with that license."