Judge orders board to renew license for Emerald

Maura Kelly Lannan

Friday, June 10, 2005 | 9:51 a.m.

CHICAGO -- A judge on Thursday ordered the Illinois Gaming Board to renew the bankrupt Emerald Casino's gambling license and allow it to relocate to suburban Rosemont, but attorneys for the board contend a hearing aimed at revoking the casino's license can continue.

Emerald says the ruling should end the revocation hearing, while it was unclear whether board members will vote to renew the license.

Cook County Judge Sophia Hall issued an order saying the Illinois Appellate Court's 2003 decision that found gambling regulators were required to renew Emerald's license and let it move its casino should be followed.

Emerald, which had closed its East Dubuque casino, wanted to relocate to Rosemont but the Gaming Board in 2001 denied its request to renew its license and relocate.

The Gaming Board has been trying to revoke Emerald's license since then over concerns that company officials lied to regulators and some investors allegedly had ties to organized crime.

A hearing to revoke Emerald's license began three years ago but was put on hold when Emerald was forced into bankruptcy. The hearing resumed last month following the order of Attorney General Lisa Madigan, whose office represents the Gaming Board.

"Judge Hall's order is only related to the renewal and relocation of the license, not revocation," Madigan spokeswoman Melissa Merz said. "Emerald withdrew its motion to stop the revocation hearing and we will proceed with that hearing."

Emerald attorney Robert Clifford said the revocation hearing should end.

"I believe that Judge Hall's order requires an immediate renewal of Emerald's license and that the revocation proceedings that started three years ago should never have taken place," Clifford said. "The board will take whatever action they think is appropriate, but we do think that the proceedings that started three years ago and continued last month were a nullity from the beginning."

The Gaming Board is scheduled to meet next week and it is unclear if members will act on Emerald's license renewal. Chairman Aaron Jaffe did not immediately return a call for comment.

Clifford also has filed a legal challenge to the constitutionality of the Gaming Board rules.

"It's impossible, in my judgment, for a licensee to get a disciplinary hearing under the rules," he said.

For example, Clifford said Emerald has a tougher standard to meet than the Gaming Board in proving to the judge in the revocation hearing why its license should not be revoked.

Judge Hall's ruling stems from a lawsuit Emerald filed after the Gaming Board denied its request to renew its license and relocate. Hall originally sided with the Gaming Board and Emerald appealed.

The Appellate Court reversed Hall's decision, saying state law required regulators to renew the license and allow it to relocate. The court also ordered the case be sent back to Hall with instructions to reverse her original ruling and enforce its decision.

Emerald never asked Hall to do that, however, because its bankruptcy placed all pending legal matters on hold. But when the Gaming Board restarted Emerald's license revocation hearing last month, Clifford received permission from a bankruptcy judge to ask Hall to follow the Appellate Court's decision.