This is interesting. LOL!
Ill. would own casino under bid plan
By MAURA KELLY
ASSOCIATED PRESS WRITER
CHICAGO -- Gov. Rod Blagojevich plans to consider a proposal that would make Illinois the first state to own a casino, an aide to the governor said Friday.
Bids for most of the seven companies competing for Illinois' last remaining casino license have not been disclosed, but a plan by Penn National Gaming would put the state in the unusual position of regulating and owning a gambling hall.
Blagojevich and Chicago Mayor Richard Daley have previously expressed interest in the idea of having publicly owned casinos run by hired management firms.
"The point is the devil is in the details," deputy governor Bradley Tusk said. Tusk said the governor had not yet seen the specifics of the proposal. "You can't answer the big question of whether you want to be part of it until you see what the bid is."
Penn National and minority investors are proposing to build a $255 million casino, sell it to Illinois for $1, and then manage it for the state, said Cezar Froelich, a lawyer for the company.
Tusk said the governor will decide whether to pursue the proposal if Penn National is chosen as the winning bidder by the state gaming board, whose members are appointed by the governor and confirmed by the Senate.
"Of course it's a conflict of interest for the governor to ask for a regulatory body to put its stamp of approval on his state-owned casino," said the Rev. Tom Grey, executive director of the Rockford-based National Coalition Against Legalized Gambling.
If the gaming board accepts the bid, Illinois would own 80 percent of the casino and private investors would own the rest, he said.
In exchange, Penn National would manage the casino for 20 years and receive 10 percent of its gross revenue. Penn National expects to earn between $40 million and $50 million annually, Froelich said.
"Obviously, we won't make nearly as much as we could as an owner, but we also take very little risk," he said.
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