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MGM, Harrah’s casinos among those suing ex-Illinois governor
Casinos battling law over profit sharing with horse racing tracks
AP Photo/M. Spencer Green
MGM Mirage’s Grand Victoria casino sits along the Fox River in Elgin Ill. It’s the state’s highest-grossing casino and the last to open in Illinois. The casino is among those that filed a lawsuit naming former Illinois Gov. Rod Blagojevich, his campaign fund, race track owner John Johnston and several other race track operators.
Monday, June 15, 2009 | 9:51 a.m.
Former Illinois Gov. Rod Blagojevich
Casinos owned by Harrah's Entertainment Inc., MGM Mirage and Penn National Gaming are suing former Illinois Gov. Rod Blagojevich as they continue to fight an Illinois law that requires them to share their profits with the state's ailing horse racing tracks.
The racketeering suit was filed Friday in federal court in Chicago by Harrah's Casino-Joliet, Ill.; MGM Mirage's Grand Victoria Casino in Elgin, Ill.; along with Penn National's Empress and Hollywood casinos in Illinois.
The suit names Blagojevich, his campaign fund, race track owner John Johnston and several other race track operators.
Blagojevich's lead attorney could not be reached for comment.
Dan Reinberg, a lawyer for Johnston, told the Wall Street Journal the suit "wasn't unexpected. The reality is that this is desperation by the casinos."
The action comes after the U.S. Supreme Court decided last week to stay out of the casinos' fight. The high court let stand without comment a state Supreme Court decision that upheld the law last year.
The renewal of the law in 2008 figures in the federal corruption case against Blagojevich. FBI wiretaps showed an alleged effort by the then-governor to shake down Johnston for a sizable campaign contribution while the bill was pending.
Four secretly recorded conversations about the issue were played at Blagojevich's impeachment trial in the state Senate. Blagojevich was arrested in his home Dec. 9 and impeached and removed from office the next month.
Until Friday's lawsuit, the former governor's legal problems had played no role in the dispute over the law's constitutionality.
Now, the casinos claim they were "directly victimized" by Blagojevich's alleged criminal conduct. They want a constructive trust put in place over the $89.2 million they've paid into the fund for the horse racing owners. Their suit also seeks unspecified damages, attorney fees and costs.
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The casino's should have paid to play just like they do when they support harry Reid. They know he is going to protect them as long as the money flows.
Chance of winning, 0%.
The courts have already completely agreed on this. The law may be stupid, but it is not unconstitutional.
Money talks. Get Springfield's attention by closing the boats for 1 week. No tax revenues for a week should wake up the legislators.
"Money talks. Get Springfield's attention by closing the boats for 1 week. No tax revenues for a week should wake up the legislators."
If a week is good, why not a year? The casino operators make a handsome profit, taxes and this setaside notwithstanding. They would be cutting off their noses to spite their faces, so to speak. Still, it has more chance of succeeding than this lawsuit. The court is going to see that this is just an attempt to continue an already decided (by the Supreme Court) case. They are going to lose and get to pay the opposing side's legal costs as well.
89 million is peanuts for MGM Mirage, look away money, or the cost of doing business. Times must be hard for the company when they are going after something less than 89 million in a public way, in another state where they don't, and won't, rule the roost.
Boo hoo, I feel so sorry for the poor Illinois casinos. If I had my way I'd make the dirty bastards go back to cruising the waterways, their original lowdown lie, that they used to get their slimy foot in the door.
The obvious question: Why should the casinos share profits with horse-racing tracks? Maybe they should share profits with gambling addiction treatment centers, or homeless shelters, but are the horse tracks a valid charity?
Because the horse track owner is a political insider.
This is Illinois.
DUH.
Okay guys, here is the issue. The Illinois horse racing industry supported a gambling expansion including additional casinos because they were promised a percentage of the 10th casino license.
THAT NEVER MATERIALIZED. So the casinos got what they wanted (like they always do) but horse racing got the fuzzy end of the lollipop. When Illinois racetracks wanted slot machines, the casinos were vehemently opposed. So it turns out that while horse racing supported casino expansion, the casinos told the tracks to drop dead. So how would you feel if you were in the racetracks shoes?