Despite a $506-million offer that was 35% higher than the second-best bid, Wyomissing, PA-based Penn National Gaming Inc. was dealt out of the game Wednesday. Penn National Gaming's offer included selling back the casino to the state while retaining management of the property. Already licensed to run the Hollywood Casino in Aurora, Penn National Gaming was one of three companies hoping to open a casino in this suburb off the runway of O'Hare International Airport.

Still in the running are Harrah's Entertainment Inc. and SL Waukegan LLC, which has bid $375 million to build a casino on the site of the former Lakehurst Mall; Midwest Gaming and Entertainment LLC, which is bidding $360 million in hopes of bringing a casino to 3000 River Rd. in Des Plaines, Rosemont's neighbor to the north; and Isle of Capri Casinos Inc., which is bidding $351 million for the right to build in Rosemont.

SL Waukegan LLC includes developer Richard A. Stein, whose projects have included the expansion of McCormick Place; and Alan B. Ludwig, who owns a Ramada Inn in Waukegan. Midwest Gaming and Entertainment LLC also includes real estate heavyweights in Neil G. Bluhm, president of JMB Realty Corp.; and Andrew G. Bluhm, founder of Delaware Street Capital.

Out of the picture are Caesar's Entertainment, which bid $205 million for the chance to set up shop in Rosemont, as well as Southland Development Group, $250-million bid was based on a plan to build in Country Club Hills with Donald Trump. Hyatt Development Corp.'s and Mandalay Resort Group's $20-million bid for a casino in Summit also was nixed.