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Vol. 5, No. 1, January 2009, Global Gaming Roundup

Crime And Corruption

By Casino Connection Staff   Tue, Dec 23, 2008

Illinois board holds hearings on 10th license with many questions

Crime And Corruption
The Illinois Gaming Board last month heard testimony for and against the three remaining contenders for the state’s 10th and last license.
The top three contenders, Midwest Gaming (led by Chicago developer Neil Bluhm), which proposes to spend $100 million in Des Plaines; Trilliant Gaming (headed by former MGM Grand President Alex Yemenidjian), which plans to spend $435 million in Rosemont; and Waukegan Gaming, which is bidding $225 million, all had previously made presentations to the board on November 25.
Last month’s hearing was a chance for the public to weigh in on the issue. But one week later, the board postponed consideration of the license without giving a reason. But maybe, just maybe, it had something to do with the state’s governor.
It turns out, the scandal that surrounded the high-profile indictment last month of Governor Rod Blagojevich had a gaming connection.
Among the 76 pages of corruption charges leveled by federal prosecutor Patrick Fitzgerald against Blagojevich is the accusation that he demanded $100,000 from a racetrack owner for signing a bill that will direct more casino tax funds to the state’s horse racing industry.
Lawmakers passed the bill several weeks ago but the governor has yet to sign it. According to Fitzgerald’s bill of particulars against the governor are quotes from a wiretap in which Blagojevich allegedly told one of his lobbyists to inform the contributor who would benefit from his signing the bill that he should hurry up and make the contribution so that the two would not seem related.
The bill was essentially the same as one passed two years ago, which the governor signed, that directs some profits from the state’s largest casinos to the state’s racetracks. (Not a penny has yet been paid to the tracks, because the casinos impacted have challenged the measure in court. It’s now before the U.S. Supreme Court.)
The bill doesn’t require the governor’s signature because it was passed by such a large majority that he wouldn’t be able to veto it even if he wanted to. According to the state constitution, in such a case, a bill automatically becomes law.
Blagojevich was accused by Fitzgerald of trying to sell the U.S. Senate seat of President-elect Barack Obama, among other charges. The governor of Illinois is responsible for appointing Obama’s successor.

By Casino Connection Staff

Casino Connection  Staff

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