Politics & Government
Waukegan Casino License Applicant Withdraws Proposal, 2 Remain
A pair of potential casino operators will make their case to state gambling regulators later this month.
WAUKEGAN, IL — One of the three finalists for a state license to operate a casino in Waukegan pulled out this week. A partnership of Louisville-based Churchill Downs and Chicago-based Rush Street Gaming withdrew its application to build "Rivers Casino Waukegan," according to Illinois Gaming Board officials.
"I need to announce that yesterday afternoon, I was informed by representatives from CDI-RSG Waukegan LLC that it no longer will be pursing the opportunity to operate a casino located in the city of Waukegan and that it is requesting leave to withdraw its application for an owner's license," Marcus Fruchter, administrator of the gambling board, said Wednesday. "That leaves two applicants for the sole casino license to be located in the city of Waukegan."
The remaining applicants are Lakeside Casino LLC, a joint venture of Warner Gaming and Tap Room Gaming that released plans for "North Point Casino," a $420 million development, and Las Vegas-based Full House Resorts, which proposed a development of up to $375 million called "American Place."
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Both applicants still in the running have proposed multi-phase development plans for the city owned Fountain Square at the site of the demolished Lakehurst Mall, located off Interstate 94 and near the intersection of Route 41, Route 43 and Route 120.
State gambling regulators are due to hear proposals from both remaining Waukegan applicants at a special meeting Oct. 13. Both will have about 55 minutes to make their case and take questions, according to the gambling board administrator.
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Waukegan Mayor Ann Taylor said in a statement that the city would let the process play itself out.
“We will continue to let the Illinois Gaming Board work through the process of selecting who will get the casino license for the City of Waukegan,” Taylor said.
The withdrawal of the Rivers Casino Waukegan proposal came a day after Churchill Downs confirmed it had entered into a $197 million purchase agreement to sell Arlington International Racecourse. A spokesperson for Rush Street Gaming, which is owned by Chicago billionaire Neil Bluhm, told the Chicago Sun-Times the timing of the withdrawal was a coincidence.
The Waukegan casino was authorized more than two years ago with the June 2019 gambling expansion sponsored by former state senator and convicted felon Terry Link (D-Indian Hills.)
Link is awaiting sentencing after pleading guilty to tax fraud in September 2020. After being questioned about tax improprieties, Link wore a wire and helped secure evidence against fellow lawmakers. Federal prosecutors said in court filings that he is expected to continue cooperating with authorities at least until January 2022.
The Waukegan City Council approved the three applicants as finalists in October 2019. But the state gambling board blew past an earlier decision deadline of Oct. 28, 2020, blaming coronavirus-related delays because it failed to pick an investment banker to review the applications until more than six months later, according to the Lake County News-Sun, which reported it could be two more years before a casino is able to open.
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