State may reap extra cash from sale of casino license

By Scott Miller

SPRINGFIELD -- The state could get $170 million more than expected from auctioning off its 10th riverboat license.
But a spokeswoman for Gov. Rod Blagojevich's budget office said Friday the governor isn't counting on that influx of cash to help bail the state out of its budget mess.

"We're not holding out for more money, but if we get it, that's great," said spokeswoman Becky Carroll.

At the close of the auction for the license in the early-morning hours Thursday, Harrah's Entertainment had submitted the largest bid, $520 million, to build a casino, hotel and restaurant in north suburban Waukegan.

When Blagojevich used the anticipated revenue from selling the license to help plug in a large budget hole last year, he figured the state would earn $350 million.

"Until this transaction is completed, we're still working with our original estimate of $350 million," Carroll said, explaining the state does not want to plan for money it isn't entirely sure will be available.

The Illinois Gaming Board will consider much more than bid amounts before it makes a decision, which is expected today, O'Shea said. Other considerations include the economic impact to the community, the taxes generated for the community, the tourism created and whether or not the proposal would share gaming revenue with poorer communities, O'Shea said.

Isle of Capri Casinos bid $518 million to construct a casino in suburban Rosemont. The lowest bid, from Midwest Gaming, was $476 million to build in Des Plaines, near O'Hare International Airport.

Even if the Harrah bid wins, the final bottom line isn't set.

The license currently is tied up in the Emerald Casino bankruptcy case, which may cut into the money Harrah's pays for the license.

The Illinois Gaming Board rejected Emerald's plan to build a casino in Rosemont because some shareholders allegedly had ties to organized crime and are accused of lying to investigators.

A federal judge currently is reviewing how much money Emerald owes to creditors. That money, estimated at around $160 million, would be taken from the revenue coming from the sale of the license, said gaming board spokesman Gene O'Shea.

In effect, if the state sold the license at $520 million, it would only keep $360 million.

Source: Pantagraph.com