Not only is Penn National Gaming offering to pay the state $350 million for the shelved license, the casino operators would pay another $156 million to creditors of the bankrupt Emerald Casino Inc., whose application was rejected amid charges of false statements. Penn National Gaming would then build a $255-million casino, including a 200-room hotel, next to the 840,000-sf Donald Stephens Convention Center on River Road.

However, Penn National Gaming also offers to sell the casino to the state for $1 in exchange for collecting 10% of its net revenue while managing the gambling operations. "We're confident our bid, if accepted, would yield the state and Emerald's minority owners the largest share of revenues," says Penn National Gaming chairman and CEO Peter Carlino. "In fact, with this agreement in place, we estimate the state could almost immediately borrow as much as $2 billion against future revenue streams from this project to address its short term budget needs, and over the long term the state will continue to receive significant and recurring new revenues."

Harrah's Entertainment and S-L Partners, who hope to build their casino on the site of the former Lakehurst Shopping Center in Waukegan, had the second-highest bid at $375 million. Wynn Midwest, a partnership involving Chicago developer Neil Bluhm and Las Vegas casino operator Steve Wynn, made a $360-million bid for a gambling house in Rosemont's neighbor to the north, Des Plaines.

Rosemont also came in fourth and sixth in the bidding, as Isle of Capri Casinos Inc. ($351 million) and Caesar's Entertainment ($205 million) also hope to build in this suburb in the shadow of O'Hare International Airport. Donald Trump is covering his northwest Indiana casino bets with his involvement in Southland Development Group, which bid $250 million in its attempt to bring gambling to southwest suburban Country Club Hills. Hyatt Development Corp. and Mandalay Resort Group low-balled the Illinois Gaming Board with a $20-million bid for a casino in southwest suburban Summit.

The field of bidders is to be whittled to three by the Illinois Gaming Board Feb. 23. A finalist is expected to be named March 5. The winning bid must be confirmed by the US Bankruptcy Court, which the gaming board hopes will happen in April.