IN THE NEWS: Wednesday, May 22, 2002

Rosemont Casino Appeals Case Opens; Emerald Sale Still Looms

By DWIGHT ESAU

Political deal-making and a courtroom drama are coming alongside each other this week in the Emerald Casino affair.

The Illinois Gaming Board, according to a spokesman, is both negotiating and litigating this week regarding whether Emerald Casino Inc. will obtain clearance to open a casino, possibly in Rosemont.

The board is pursuing the subject on two fronts:

* First, proceedings in an administrative appeal opened Monday, May 20 in the State of Illinois Building courtroom. Administrative Law Judge Herbert Holzman is conducting a trial on Emerald's appeal of the gaming board's January, 2001 decision to discipline the firm for alleged wrongdoing related to organized crime ties and lies to board investigators. The trial is expected to last about six weeks and will result in Holzman's advisory opinion to the board.

* Second, the board continues to negotiate with Emerald regarding a possible settlement in which Emerald would sell out to another firm or group of investors. One of these proposals, several versions of which the board has rejected, is a $615 million sale of Emerald to MGM Mirage of Las Vegas.

The administrative appeal is required by law after the board disciplines a gambling license holder or denies it permission to operate or open a casino.

The appeal is conducted like a bench trial, with no jury present. Evidence and witnesses testimony is presented by both sides and cross-examination by each side of the others' witnesses is permitted.

Hearings on the license denial appeal also are required and have not yet been scheduled.

The Village of Rosemont, on the other hand, still hopes the negotiations regarding a sale will eventually come to reality. The latest proposal involving MGM reportedly included an approximate $40 million reimbursement to the village by Emerald for the William Street parking garage. The village expanded this facility last year, at a cost of more than $40 million, to prepare for the casino, which is proposed to be located next to the parking garage in a new, glitzy entertainment center.

Back to top of page