Lawsuit over ‘sham’ Waukegan casino selection process could delay construction, developer says
WAUKEGAN, Ill. - Waukegan’s chosen casino operator isn’t taking any bets on when they might start building their permanent north suburban gambling temple while a competitor’s lawsuit alleging a "sham" selection process for the gaming license plays out in court.
Full House Resorts CEO Dan Lee said Tuesday that the Forest County Potawatomi Community’s recently revived lawsuit against the city of Waukegan and the Illinois Gaming Board "may end up delaying our start of construction and financing" for a final casino structure.
"We haven’t started construction yet, but we are actively designing it," Lee told investors during a quarterly earnings call. "I think ultimately the suits will end up being resolved and then everything can go forward."
Full House Resorts was approved for the Waukegan casino license almost two years ago and has operated a temporary casino in Waukegan since February, cashing in more than $30 million in adjusted gross revenue through June.
The Las Vegas-based corporation had aimed to start construction this year on their final $400 million "American Place" project, pitched as a high-end gambling emporium catering to high-rollers, with "ultra-luxurious" villas and a helicopter landing pad.
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But that timeline has been put "back into flux a little bit," Lee said, because an Illinois appellate court sided last month with the Potawatomi in the tribe’s ongoing legal battle over how officials in Waukegan picked their preferred casino developers that were then forwarded for final selection by gaming board regulators.
"We thought this suit was pretty much gone," Lee said.
The Potawatomi filed a federal lawsuit shortly after being passed over by Waukegan officials for license consideration despite scoring well on a city-hired consultant’s rating system. They also filed a Cook County lawsuit to stop the gaming board from issuing the license that ended up going to Full House Resorts.
Potawatomi attorneys have argued the suburb’s "casino certification process was a sham," with former Waukegan Mayor Sam Cunningham telling city council members which bids to approve, and favoring another bid backed by former Grayslake state Sen. Michael Bond. Bond, who’s not accused of wrongdoing, had poured thousands of dollars into local elections through his video gambling machine company, Tap Room Gaming.
A Cook County judge dismissed that lawsuit after the gaming board handed the license to Full House Resorts, which isn’t a defendant in any of the lawsuits or accused of any wrongdoing.
The state’s First District Appellate Court revived that case July 28 — not ruling on the merits of the tribe’s "sham" claims, but agreeing they have standing to continue the suit. The Potawatomi’s federal suit is still pending.
Representatives for the gaming board and Illinois Attorney General Kwame Raoul’s office, which is trying the case, declined to comment. Waukegan officials haven’t returned messages seeking comment. They each have until early September to decide whether to appeal to the Illinois Supreme Court or proceed with the county case.
In court filings, Waukegan attorneys have called the tribe’s claims "factually suspect," and intended to halt any casino development from competing with the Potawatomi casino in Milwaukee.
The appellate court suggested the gaming board could restart the application process if the Potawatomi prevail.
Full House Resorts has aimed to open their permanent casino sometime in 2025. They’re authorized to operate the temporary facility through early 2026.