License Finds a Home

The Illinois Gaming Board last week awarded the state’s 10th gaming license to Midwest Gaming LLC’s proposed casino in the Chicago suburb of Des Plaines.

The board selected Midwest Gaming from three finalists. The other bidders came from the suburb of Rosemont, which is adjacent to Des Plaines, and from the far north suburban city of Waukegan.

The board’s action ends a decade-long effort to award the license that has been wrought with ethical and financial problems. Emerald Casino Inc. originally held the license and planned to open a casino in Rosemont, but the gaming board blocked that move when it was learned that the company failed to disclose some investor information. It was alleged some of the investors had organized crime ties.

The company later filed for bankruptcy and attempted to sell the license, but the state fought the sale and the board eventually stripped Emerald of the license.

Midwest Gaming will pay $122.5 million up front for the license and then an additional $300 million over the next 30 years. The payment schedule could contribute to the state’s $2 billion budget deficit as finance officials had expected to raise $500 million in an up-front cash payment from the recipient of the 10th license. State officials have not said how they would cover the latest shortfall. Some have suggested that the state could borrow against the $300 million revenue stream.

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