Full House Resorts Endorsed For Waukegan Casino By Gambling Board
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WAUKEGAN, IL — State gambling regulators have picked a publicly traded Las Vegas-based casino operator to develop a casino in Waukegan.
The Illinois Gaming Board on Tuesday selected Full House Resorts as the finalist for a gambling license and made a "finding of preliminary suitability" for licensure.
The board favored Full House's plan for a casino and entertainment destination called American Place over a proposal backed by a former state senator and video gambling machine operator who has invested heavily in local politics.
Daniel Lee, president and chief executive officer of Full House, said in a release that the company expects to be able to open a temporary facility by mid-2022.
"We thank the Illinois Gaming Board for their confidence in Full House Resorts and for selecting our American Place proposal," Lee said.
"We will begin working immediately on American Place, first with the development and construction of a temporary casino in Waukegan," he added. "Through our planned temporary facility – aptly named The Temporary by American Place – we will be able to quickly create jobs and generate tax revenues while the permanent American Place facility is being built."
Plans for American Place call for an eventual 1,640 slot machines and 100 table games, sports betting, a 1,500-seat entertainment venue, 20-room boutique hotel and a heliport.
The board's determination comes more than 2½ years after Gov. J.B. Pritzker signed into a law a gambling expansion bill containing a provision permitting a casino in Waukegan and five other places. So far, only one has opened.
While the suitability finding does not guarantee final licensure, it does allow Full House to start construction and move toward operations.
"The city believes the Illinois Gaming Board made the correct decision today by taking steps toward giving Full House the Waukegan casino license," Waukegan Mayor Ann Taylor said in a statement provided to Patch.
"We are looking forward to fruitful and forward-looking conversations with Full House to ensure that we have a responsible and transparent relationship with open lines of communication," Taylor said. "We want the casino to serve as an economic engine for the city, and we feel confident Full House is committed to this."
American Place is expected to have 2.5 million patrons and generate $255.5 million in gross revenue in its first year of operations, according Full House's license application.
That would generate $22.2 million in taxes fees and lease payments to the city of Waukegan. It would also $3.2 million to Lake County government, $2.1 million to North Chicago and $1.4 million to Park City, under the revenue-sharing formula written into the state law.
Full House anticipates hiring about 1,150 full-time employees and more than 700 part-time workers, according to its application.
The June 2019 gambling expansion that earmarked Waukegan as a casino destination was sponsored by former state senator, county Democratic Party chair and convicted felon Terry Link (D-Indian Hills.) Link pleaded guilty to tax fraud in September 2020 and is awaiting sentencing while cooperating with federal authorities.
After investigators questioned his tax filings, Link wore a wire while soliciting bribes from a state representative at restaurants in Skokie and Highland Park, according to past reports. Federal prosecutors said in court filings that he is expected to continue cooperating with authorities at least until January 2022.
The American Place proposal was originally one of five submitted to the Waukegan City Council in response to a request for proposals. In October 2019, aldermen voted to forward it and two others to the state gambling board.
Following a delayed review of the applications, Rush Street Gaming, the operator of Rivers Casino in Des Plaines, withdrew from consideration.
That left just American Place and a proposal for the North Pointe Casino from Lakeside Casino LLC, a venture backed by Michael Bond, a former Democratic state senator from Grayslake, who invested heavily in Waukegan aldermanic races.
The Potawatomi tribe has challenged the City Council's decision in state and federal court, describing it as "rigged" in favor of Bond.
On Tuesday, a Cook County judge rejected the Potawatomi Waukegan Casino's request for an order blocking the gambling board from approving the license, the Chicago Tribune reported.
The federal challenge remains pending, and the parties were unable to reach an agreement at a settlement conference last week, according to court records.
The site for all the proposals was the Fountain Square property, 32 acres of vacant land purchased by the city nearly two decades ago in the hopes of building a casino there — the site of the since-demolished Lakehurst Mall.
According to court filings, Full House has proposed an option to purchase the property for $30 million at any time during its lease.
If all goes according to plan, the project is expected to be take more than two years to complete, according to Lee.
"Our permanent American Place facility is designed to be a world-class destination for nearby Chicagoland residents and the entire region, and will include luxurious amenities such as an all-villa hotel with full butler service," the CEO said.
"We are excited to join the Waukegan community and welcome the opportunity to bring our American Place vision to life, with completion of our full experience expected in 2024."
