More On Binion
Posted: Sat May 13, 2006 9:10 pm
Gaming Board Shoots Down Rosemont Bid For Casino
CHICAGO -- State gambling regulators torpedoed plans for a riverboat casino in suburban Rosemont on Tuesday, claiming key casino officials had "insidious" ties to organized crime.
The 4-1 decision by the Illinois Gaming Board came after more than 1.5 years of wrangling following the Legislature's decision that laid the groundwork for the lucrative venture.
Board Administrator Sergio Acosta recommended the license denial, saying that Emerald Casino Inc. officials Donald and Kevin Flynn had made "false and misleading statements" to the board in the course of its investigation.
Acosta also said that two of the proposed shareholders have close associations with organized crime and that the mob controls at least one firm contracted to do construction at the site of the proposed casino.
"The investigative record establishes the insidious presence of organized crime elements associated with this proposed project that cannot be ignored," Acosta said.
Acosta and board members left the meeting without clarifying what evidence they had of mob influence or why they believed the Flynns had not been honest.
Emerald attorney Mike Ficaro said he was "distressed" by the board's decision and would appeal. An appeal would put the case before an administrative law judge, who would make a recommendation to the board after both sides presented their cases.
Ficaro said he had not seen Acosta's report and could not comment on who the two shareholders with alleged mob ties may be. He said he had seen no proof that anyone related to Emerald was associated with organized crime.
Kevin Flynn, Emerald's chairman and CEO, called the decision "absurd," and said he had no idea what Acosta was referring to. He said he could disprove any allegation that he had lied.
"How do I get my reputation back?" Flynn said. "I have nothing to refute, nor was I given the chance."
Ficaro said he believed Acosta was referring to a lawsuit filed by California billionaire Marvin Davis, who claims Emerald cheated him out of a promised 37.5 percent stake in the riverboat. He said the board likely chose to believe Davis and others involved in the lawsuit over the Flynns.
Gaming Board investigators also had interviewed Rosemont Mayor Donald Stephens about his possible association with organized crime figures; allegations he has vehemently denied.
Gary Mack, a Stephens spokesman, said after the meeting that Stephens and Rosemont did not seem to be a factor in the decision. Mack noted that many board members agreed that Rosemont, a northwest suburb sandwiched between Chicago and O'Hare International Airport, was a prime location for a casino.
Gov. George Ryan issued a statement of support for the board after the meeting.
"The governor has confidence in the judgment of these people he's appointed to the board, and he supports their decision as being in the public interest," Ryan spokesman Ray Serati said.
In other action Tuesday, the board approved an agreement ordering the chief owner of Joliet's Empress Casino to sell his share in gambling operations and move his headquarters out of Joliet within 120 days.
The board had denied a license renewal to the Empress after declaring Horseshoe Gaming Inc. CEO Jack Binion unfit to run the casino. Staff investigators said they had uncovered questionable business practices and compliance issues involving Binion in Nevada, Louisiana and at the Joliet casino.
Board member Joseph Lamendella was the lone dissenter on that matter and promptly resigned from the board. Gaming board spokesman Gene O'Shea said Lamendella's resignation was not connected to either the board's deal with Binion or its vote to deny a license for a casino in Rosemont.
Horseshoe Gaming has agreed to dissolve economic and executive ties with the Empress and find a new owner for the casino.
Lawmakers approved the Rosemont casino deal in 1999 as part of a sweeping package that allowed gambling boats to remain docked and promised casino money to help prop up the horse-racing industry.
The law allowed the operators of a defunct East Dubuque riverboat to move the state's only dormant casino license to Rosemont. The owners took a new name, Emerald Casino Inc., and applied with the Gaming Board to move the license.
State experts predicted that Rosemont would be the most lucrative casino site in the state, generating between $10 million and $15 million every month in tax revenue.
But the move was put in limbo after a rival development group from Lake County, seeking a shot at the license, claimed the law amounted to an unconstitutional political deal. A Cook County judge dismissed that lawsuit last week.
Michael Dockterman, an attorney for the Lake County group, said Tuesday that his clients were thrilled with the decision and planned to reapply for a license as soon as they could.
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CHICAGO -- State gambling regulators torpedoed plans for a riverboat casino in suburban Rosemont on Tuesday, claiming key casino officials had "insidious" ties to organized crime.
The 4-1 decision by the Illinois Gaming Board came after more than 1.5 years of wrangling following the Legislature's decision that laid the groundwork for the lucrative venture.
Board Administrator Sergio Acosta recommended the license denial, saying that Emerald Casino Inc. officials Donald and Kevin Flynn had made "false and misleading statements" to the board in the course of its investigation.
Acosta also said that two of the proposed shareholders have close associations with organized crime and that the mob controls at least one firm contracted to do construction at the site of the proposed casino.
"The investigative record establishes the insidious presence of organized crime elements associated with this proposed project that cannot be ignored," Acosta said.
Acosta and board members left the meeting without clarifying what evidence they had of mob influence or why they believed the Flynns had not been honest.
Emerald attorney Mike Ficaro said he was "distressed" by the board's decision and would appeal. An appeal would put the case before an administrative law judge, who would make a recommendation to the board after both sides presented their cases.
Ficaro said he had not seen Acosta's report and could not comment on who the two shareholders with alleged mob ties may be. He said he had seen no proof that anyone related to Emerald was associated with organized crime.
Kevin Flynn, Emerald's chairman and CEO, called the decision "absurd," and said he had no idea what Acosta was referring to. He said he could disprove any allegation that he had lied.
"How do I get my reputation back?" Flynn said. "I have nothing to refute, nor was I given the chance."
Ficaro said he believed Acosta was referring to a lawsuit filed by California billionaire Marvin Davis, who claims Emerald cheated him out of a promised 37.5 percent stake in the riverboat. He said the board likely chose to believe Davis and others involved in the lawsuit over the Flynns.
Gaming Board investigators also had interviewed Rosemont Mayor Donald Stephens about his possible association with organized crime figures; allegations he has vehemently denied.
Gary Mack, a Stephens spokesman, said after the meeting that Stephens and Rosemont did not seem to be a factor in the decision. Mack noted that many board members agreed that Rosemont, a northwest suburb sandwiched between Chicago and O'Hare International Airport, was a prime location for a casino.
Gov. George Ryan issued a statement of support for the board after the meeting.
"The governor has confidence in the judgment of these people he's appointed to the board, and he supports their decision as being in the public interest," Ryan spokesman Ray Serati said.
In other action Tuesday, the board approved an agreement ordering the chief owner of Joliet's Empress Casino to sell his share in gambling operations and move his headquarters out of Joliet within 120 days.
The board had denied a license renewal to the Empress after declaring Horseshoe Gaming Inc. CEO Jack Binion unfit to run the casino. Staff investigators said they had uncovered questionable business practices and compliance issues involving Binion in Nevada, Louisiana and at the Joliet casino.
Board member Joseph Lamendella was the lone dissenter on that matter and promptly resigned from the board. Gaming board spokesman Gene O'Shea said Lamendella's resignation was not connected to either the board's deal with Binion or its vote to deny a license for a casino in Rosemont.
Horseshoe Gaming has agreed to dissolve economic and executive ties with the Empress and find a new owner for the casino.
Lawmakers approved the Rosemont casino deal in 1999 as part of a sweeping package that allowed gambling boats to remain docked and promised casino money to help prop up the horse-racing industry.
The law allowed the operators of a defunct East Dubuque riverboat to move the state's only dormant casino license to Rosemont. The owners took a new name, Emerald Casino Inc., and applied with the Gaming Board to move the license.
State experts predicted that Rosemont would be the most lucrative casino site in the state, generating between $10 million and $15 million every month in tax revenue.
But the move was put in limbo after a rival development group from Lake County, seeking a shot at the license, claimed the law amounted to an unconstitutional political deal. A Cook County judge dismissed that lawsuit last week.
Michael Dockterman, an attorney for the Lake County group, said Tuesday that his clients were thrilled with the decision and planned to reapply for a license as soon as they could.
article # 14/1196