Attorney general sues Gaming Board in casino dispute

Monday, June 14, 2004 | 9:04 a.m.

CHICAGO -- Attorney General Lisa Madigan on Friday filed a lawsuit seeking to stop the Illinois Gaming Board from reviewing a plan that would clear the way for a new casino in Rosemont, claiming that the board has overstepped its authority.

The complaint, filed in Cook County Circuit Court, says the board "usurped the authority" of the attorney general by moving forward with portions of a reorganization plan for the bankrupt Emerald Casino Inc. that she opposes.

The Gaming Board has been preparing to evaluate a $518 million bid from Isle of Capri Casinos Inc. for Emerald's license.

Madigan brokered a settlement with Emerald late last year that outlined how the sale of the license would work. But the plan approved by a bankruptcy court judge last month -- after the Gaming Board had already selected Isle of Capri -- included changes that Madigan says are unacceptable.

She also has criticized the board's selection of a casino plan for Rosemont, saying the suburb might have ties to organized crime.

Chief Deputy Attorney General Barry Gross said during a conference call Friday that because Emerald's reorganization plan was amended, the Gaming Board has no authority to move forward with its review of the Isle of Capri plan.