Penn National Makes Bid on Illinois License

ILLINOIS – As reported by the Chicago Tribune: "A surprisingly large bid for the state's dormant 10th casino license could give the Blagojevich administration a big cash windfall and unprecedented control of a new casino in suburban Rosemont, several industry sources said Thursday.

"Pennsylvania-based Penn National Gaming, which owns the Hollywood Casino in Aurora, has offered to pay more than $500 million for a license to open the state's final riverboat, the rights to which are held by the bankrupt Emerald Casino, the sources said. That's at least $200 million more than any of the other six casino companies that have bid on the license, according to the sources.

"One reason Penn National's bid is so much higher than its rivals is that it included an unusual provision in which it offered to transfer ownership of the casino to the state in exchange for a contract allowing the company to manage the casino, the sources said.

"…If Penn National wins the bidding war for a new casino and turns it over to the state, Blagojevich would find himself in charge of what is likely to be Illinois' biggest moneymaking riverboat. The move would also easily help the governor meet his goal of raising at least $350 million from the transaction to help ease the state's budget crisis.

"…Susan Lichtenstein, Blagojevich's general counsel, said she was unaware of anyone in the administration who had spoken to Penn National about its bid.

"…Penn National's proposal is the latest twist in a prolonged saga involving the gambling license held by Emerald, which planned to open in Rosemont until it was blocked by state regulators…"