Fine reduced for Illinois casino

Friday, Jan. 24, 2003 | 10:09 a.m.

Acknowledging it failed to properly investigate an air filtration firm with alleged mob ties before signing a contract, the Grand Victoria Casino in Elgin, Ill., agreed Tuesday to pay a scaled down fine, the Chicago Tribune reported.

The settlement resolves a yearlong dispute between the Illinois Gaming Board and the Grand Victoria, which agreed to forfeit $3.2 million, the largest fine ever paid by a casino in Illinois, though it amounts to less than three days of the casino's receipts. The Gaming Board had sought $7.2 million, but casino attorneys challenged the amount as excessive.

Gaming Board officials said they reduced the fine as recognition of the efforts the casino has made since allegations first arose in 2001, including overhauling staff, bringing in top-of-the-line security equipment and tightening procedures, the Tribune said.

The Grand Victoria is co-owned by Chicago's Pritzker family, owners of the Hyatt hotel chain; and Las Vegas-based Mandalay Resort Group. It's the most lucrative casino in Illinois, bringing in more than $416 million a year, the Tribune said.

In 2001, the casino was hit by allegations by the Gaming Board that it had entered into a $292,000 contract with Pure Air Werks, among other companies, whose owners were allegedly tied to organized crime.