Eight years ago, Illinois legislators sought to make state-sanctioned gambling even more of a playpen for their friends than it already was. They tried to steer one of 10 state gaming licenses to a clout-rich Emerald Casino that would open in clout-rich Rosemont. It was a classic ploy from the Illinois culture of political sleaze: The pols of both parties help their pals — and everybody goes home the richer.
Or so the wise guys and gals figured. But the Rosemont casino plan flopped. And, late in 2005, the Illinois Gaming Board revoked the Emerald license, concluding that company officials had played fast and loose with rules designed to keep casino operators honest and mob-free. Emerald appealed that revocation to the courts. And Thursday, three state appellate judges in Springfield used 152 pages of convincing prose to demolish Emerald’s arguments one by one.
That unanimous decision is terrible news for all those Illinois pols and their insider pals. It is, though, vindication for Illinois Atty. Gen. Lisa Madigan. She has spearheaded years of legal efforts to protect the interests of the state’s citizens in this. She won big Thursday. And if Emerald tries to appeal Thursday’s ruling to the Illinois Supreme Court, our guess is she’ll win again.
The pressing question now is whether, this year and in future years, our wise solons in Springfield will recognize that it’s the job of the Gaming Board — not the legislature — to issue, regulate and, if necessary, revoke casino licenses. The clumsy efforts of legislators back in 1999 have wound up idling the 10th license for all these years. That probably has cost Illinois taxpayers $1
billion in gaming revenues.
The Gaming Board’s 2005 revocation opinion detailed the alleged lies, misdeeds and scheming of Emerald officials.
Its last paragraph neatly summed up why all of that mattered: “The operation of gaming by Emerald would greatly undermine public confidence and trust in the credibility and integrity of the gambling operations and regulatory process in Illinois.” In other words: Allowing illicit influences to corrupt gaming would kill the industry in this state — and choke off the revenue it produces.
When the revocation occurred, Emerald attorney Robert Clifford in essence threatened legal appeals that could drag on for years, making it hard for the state to fetch top dollar for the revoked license. “What investor in his or her or its right mind would want to buy a license that is so mired in litigation, in a morass of litigation,” Clifford said.
That has long been Emerald’s strategy: If we whine long enough, someday we’ll prevail.
Since Clifford’s threat, though, Emerald has been on a losing streak in federal and state courts. And, by our count, two challenges to the revocation process still await action by a state appellate court in Chicago. But as proof that life can be comical, the Springfield appellate judges who ruled Thursday essentially rejected Emerald’s argument in its Chicago appeals. We can’t predict from that how the Chicago appellate judges will rule. But it’s another embarrassment for Emerald.
The Springfield judges showed special scorn for the company’s suggestion that revocation was too harsh a penalty. “Emerald’s proved violations of the [Gaming] Board’s rules are plentiful,” Thursday’s opinion states. “Each one of these violations, standing alone, could support a revocation of Emerald’s gaming license.”
So, what does all this mean?
* Illinois citizens are one step closer to the day that a 10th casino, honestly run, is producing revenue for their state government.
* Emerald likely will continue its search for a court willing to take leave of its senses and hand the company some ruling in its favor.
* And the Illinois lawmakers who teed up this debacle in 1999 owe all of us an apology. Failing that, they at least should learn how playing games with casino licenses makes them losers.
