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3rd casino bets on Rosemont Owner of Aurora's Hollywood Casino places bid By Michael Higgins and Courtney Flynn Tribune staff reporters January 21, 2004 The company that owns Hollywood Casino in Aurora has jumped into the bidding for Illinois' only remaining casino license, bringing to three the number of gambling companies that hope to build in Rosemont. Penn National Gaming, based in Wyomissing, Pa., joins Caesars Entertainment and Isle of Capri Casinos as companies that hope to entertain gamblers in Rosemont, the trade show and convention hub near O'Hare International Airport. Penn National's bid showed how attractive casino companies continue to find Rosemont, despite the village's inability to persuade the Illinois Gaming Board to allow Emerald Casino to open there. On Tuesday, village officials were not taking sides among their three suitors but cited the high interest as a point in their favor. "I think the bidders are aware of the fact that Rosemont is the premier location," said Gary Mack, a spokesman for Mayor Donald Stephens. "The more the merrier, I guess. It doesn't matter to Rosemont who gets the casino. ... We'll be happy to take anybody." Penn National's entry into the bidding, with six competitors who had been expected to bid, was made public Tuesday. The four towns besides Rosemont seeking the license are Country Club Hills, Des Plaines, Summit and Waukegan. Since 1999 Rosemont officials have urged the Gaming Board to approve a casino for the village, either by allowing Emerald to open there or by allowing it to sell its license to another firm. But in 2001 the board revoked Emerald's license, concluding that top company officials had lied to state investigators and sold shares to investors with ties to organized crime. Last year, the board reached a settlement with Emerald, which is bankrupt, that allows other towns into the bidding. Penn National owns casinos, racetracks and off-track betting facilities in seven states and Canada. In March, the Gaming Board cleared the way for the company's acquisition of Hollywood Casino Corp., based in Dallas. Penn National paid $347.5 million and assumed $569 million of debt to acquire Hollywood's casinos in Aurora and Shreveport, La., and a hotel and casino in Tunica, Miss. Penn National officials could not be reached Tuesday. The dollar amount of the bids will not be made public until Jan. 29, and board officials had not reviewed the bids as of early Tuesday. But board Chairman Elzie Higginbottom said the number of bids was a good sign. "I'm very pleased with the number--that we have seven," Higginbottom said. "I think it's good for the people of the state of Illinois. This has been a very competitive and open process. Now let's see what the numbers say." The financial aspects of the bids will be analyzed by Rothschild, an international investment banking firm. The Gaming Board will examine application material from the casino companies, which include answers to questions about the companies' experience, reputation and financial integrity. The board will announce three finalists Feb. 23. A leading bidder will be identified March 5, and the winning bidder will be announced March 15, board officials said. State officials hope the bidding process will result in an orderly sale of the license. But uncertainties remain because the sale must be approved by a federal bankruptcy judge. Rosemont officials believe a recent state appeals court decision gives their village a legal claim to the casino license. On Tuesday, Illinois Atty. Gen. Lisa Madigan asked the appeals court to reconsider that decision. The companies that hope to build outside of Rosemont have teamed up with real estate developers in making their bids. In Waukegan, Harrah's Entertainment is working with S-L Partners, which includes developers Richard Stein and Alan Ludwig. In Des Plaines, partners in the project include Wynn Resorts Limited, led by gambling tycoon Steve Wynn, and Midwest Gaming & Entertainment, led by developer Neil Bluhm. In Summit, partners include Mandalay Resort Group and Hyatt Development Corp., the same alliance that runs the state's most prosperous casino, Grand Victoria in Elgin. In Country Club Hills, Merit Management Group, an investor group that includes former casino executive Joseph Canfora, has joined with Gatling Community Development, owned by LaFayette Gatling and family, of Gatling Funeral Home in Chicago Copyright © 2004, Chicago Tribune |
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