Gaming briefs for July 23, 2003

Wednesday, July 23, 2003 | 11:17 a.m.

Emerald casino license at issue

CHICAGO -- Attorneys for the bankrupt Emerald Casino argued Tuesday that Illinois Attorney General Lisa Madigan opposed at the last minute a plan allowing shareholders to recover their initial investment if the casino license was sold.

The Illinois Gaming Board and Emerald had reached a settlement that outlined how the license would be sold. The state wants to revoke Emerald's license because it said Emerald lied to regulators and had alleged ties to organized crime.

But Madigan said in court papers last week she will not approve a settlement that allows the alleged Emerald wrongdoers "to escape the consequences of their conduct by getting their money back."

A bankruptcy judge is expected to decide Thursday whether the Gaming Board can revoke Emerald's license through a hearing. Judge Eugene Wedoff heard arguments Tuesday on the matter, but delayed his decision until he could review the issue further.

Attorneys for Emerald said they were not aware of Madigan's objection to the settlement until early June.

"Only at the 11th hour and 59th minute did the objection of the attorney general arise," said Robert Gasaway, Emerald attorney.

Barry Gross, chief deputy attorney general, said Madigan first said publicly that alleged Emerald wrongdoers should get no money back in early June, but had discussed the idea privately months earlier.

Casino plan advancing

D'IBERVILLE, Miss. -- Construction could begin this fall on a $150 million casino resort, said D'Iberville Mayor Rusty Quave.

The U.S. Army Corps of Engineers Mobile District is expected to release an environmental impact statement in early September on the casino's effect on wetlands and aquatic life, Quave said.

He said the corps has determined that building a casino on 9.25 acres of land west of the Interstate 110 bridge on Back Bay will not have any negative environmental impact.

Once the report is issued, Quave said Diversified Opportunities Group is prepared to buy the land and start work.

Diversified Opportunities is a development and investment company owned by the Jacobs family of Cleveland, Ohio. Richard E. Jacobs, one of the partners in the development, is a former owner of the Cleveland Indians.