Blagojevich says he will appoint a special investigator to oversee the Illinois Gaming Board's inquiry into whether Isle of Capri is suitable to run a casino in Rosemont.

"Before the 10th license can be up and running, we need to make sure that every legitimate concern surrounding the license is fully reviewed, considered, and publicly addressed and aired," Blagojevich says. "In the past, there were clear problems surrounding the location of the 10th license in Rosemont. By conducting a full and open review, we can discover whether those problems still exist."

Emerald Casino's bid to relocate its operation from East Dubuque, IL to Rosemont was nixed by the Illinois Gaming Board because of misleading statements made in its application as well as allegations of ties to organized crime.

Madigan expressed surprise at the Illinois Gaming Board's selection of the Isle of Capri and Rosemont, which was $2 million less than the high bid from Harrah's Entertainment and a group hoping to put the 10th license in Waukegan.

"It is imperative that the IGB explain to the public in detail how it became comfortable with Rosemont as the location of the casino and Isle of Capri as the operator, in light of the concerns IGB members expressed through the Emerald revocation proceeding and recent disclosures of prior disciplinary action against Isle of Capri principals," Madigan says.

A day before the Illinois Gaming Board voted to give the 10th license to Isle of Capri, the Chicago Sun-Times reported that chief executive officer Bernard Goldstein and his former company was fined $255,000 in 1993 after an East Peoria casino overpaid for gambling machines. That deal was with a company owned by relatives of Goldstein and his wife, the newspaper reported.

Isle of Capri officials welcome the scrutiny.

"The selection of Isle of Capri provides the most tax dollars initially and over the long term to the state of Illinois," says president and chief operating officer Timothy M. Hinkley. "Our company has been involved in numerous competitive situations over the years, and this one stood out as one of the most thorough and open processes we've ever been involved with. We commend the attorney general for her role in developing the rules for this process. The rules were also approved by a federal bankruptcy judge, and the entire process was administered by a top-level investment bank and the Illinois Gaming Board."

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GlobeSt.com UPDATE: Casino Board Decision Scrutinized

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