Illinois governor seeks probe of casino decision

Anna Johnson

Thursday, March 18, 2004 | 9:23 a.m.

CHICAGO -- Gov. Rod Blagojevich on Wednesday called for an investigation into the Illinois Gaming Board's decision to pick Rosemont as the site for the state's next casino after previous plans for a casino there collapsed when the Gaming Board alleged that some investors had mob ties.

"We need to make sure that every legitimate concern surrounding the license is fully reviewed, considered and publicly addressed and aired," Blagojevich said in a statement. "All the concerns surrounding the location of a casino in Rosemont is undermining the public's confidence in the process."

The Gaming Board on Monday awarded the state's 10th casino license to Mississippi-based Isle of Capri Casinos Inc., which bid $518 million to build a Caribbean-themed casino in the suburb northwest of Chicago. The sale of the license stills needs final approval from a bankruptcy court judge. Isle was chosen over two other finalists, including Harrah's Entertainment Inc. of Las Vegas.

The license now is held by the bankrupt Emerald Casino, which also planned to locate in Rosemont, but that plan collapsed when the Gaming Board alleged, among other problems, that two investors in the proposed Emerald casino had mob ties.

The governor said he would appoint a special investigator to work with the Gaming Board to examine its selection of Rosemont. The statement said the review would be "to address questions and concerns that have surrounded gaming in Rosemont since the initial decision was made to award the license to Emerald."

Blagojevich said the investigation also would look at Isle of Capri's negotiations with the suburb.

Gaming Board chairman Elzie Higginbottom said he welcomes the governor's special investigator.

"We have nothing to hide. Everything was completely transparent," Higginbottom said. "We welcome anything to protect the integrity of the state."

Deputy governor Bradley Tusk said the Gaming Board is required to conduct a suitability analysis for every casino in Illinois, but the governor wants this review to go beyond that.

"The expanded analysis the governor is calling for will look at whether problems associated with the gaming (in Rosemont) in the past exist today," Tusk said. "If those problems don't exist today, then that's certainly good to know. If they do exist today, they certainly need to be dealt with."

Rosemont Mayor Donald Stephens issued a statement Wednesday commending the governor for the investigation.

"I am confident that an independent, fair and impartial investigation into all the facts, will prove Rosemont to be free from any hint of impropriety," he said. "I welcome a speedy investigation so this casino can begin operations quickly to assist the state of Illinois."

Isle of Capri also welcomed Blagojevich's review.

"We have been licensed in many jurisdictions and not had many problems up to this point," said Isle of Capri spokeswoman Lori Hutzler. "So if this process in Illinois continues, we feel confident about our company and our history."