Illinois Gaming Board Streamlines Licensing Process

The Illinois Gaming Board, under pressure to speed up new casino license approvals, voted to allow Administrator Morris Fruchter (l.) to authorize certain actions to avoid further delays.

Illinois Gaming Board Streamlines Licensing Process

At its recent meeting, the Illinois Gaming Board (IGB) recently approved a resolution that will streamline the casino licensing process and allow temporary casinos.

IGB Administrator Marcus Fruchter explained the resolution delegates him to authorize and conduct a final practice gaming session, issue a temporary operating permit and authorize gaming at a temporary facility, thereby avoiding delays. Fruchter noted by delegating certain authorizations, actions will no longer depend on the board’s meeting schedule or Covid-19 impacts.

IGB Board Chairman Charles Schmadeke stated, “I believe that this delegation will improve the efficiency of this organization without impairing or diminishing our oversight responsibilities and general effectiveness. I think delegating these matters is a very good idea.”

The IGB has been under pressure to expedite the process, since Governor J.B. Pritzker signed legislation allowing new casinos in June 2019.

At the meeting, Fruchter provided updates on expanded gambling in the state. He said the board is investigating the proposed Danville license applicant, Wilmorite Construction of Rochester, New York, which is partnering with Golden Nugget. The first phase of the project would include 500 slots and 10 table games, plus a steak house and food court. Wilmorite officials project the casino would generate $66 million annually, with $6.2 million going to the city of Danville. The process there fell behind schedule after an initial bid fell apart last year.

Three Waukegan license applicants and four for the south suburban will make public presentations on October 13 at a special IGB meeting. Initial approvals to the winning projects could be announced by mid-January. The six total finalists will then present their “best and final offers” for the licenses in a competitive bidding process, Fruchter said. The process will have taken two and a half years since Pritzker signed the legislation.

State Rep. Anthony DeLuca said, “I understand Covid-19 made delays, but that’s an awfully slow process. That’s a snail’s pace. It’s disappointing that the fact we have a date in October, still more than a month away, is exciting progress. At least now we have substantive information showing that the process is moving along.”

Fruchter noted besides the pandemic, licensing delays have been caused by lack of staff members who are vetting other new casino applicants, overseeing an expansion in video gaming and building the framework for sports betting. Further delays were caused as the board had trouble finding a consultant to handle the bidding process.

Chicago Mayor Lori Lightfoot has extended the casino license application deadline to October 29, due to lackluster response from major casino operators. Observers said it will take several months before the city selects a developer and advances the proposal to the IGB.

The IGB already has granted preliminary approvals for new casinos in Rockford, Hawthorne Race Course in Stickney, Fairmount Park near East St. Louis and downstate Williamson County, where the board approved changes to the license application for the Walker’s Bluff Casino Resort.

Walker’s Bluff owners Cynde and David Bunch are partnering with Elite Casino Resorts to build the resort. Original plans called for a temporary casino but Elite Casino Resorts President Dan Kehl told the board, “We’re asking to shelve the temporary casino and go right into a permanent casino.” Kehl said ground could be broken by late September and construction could begin in October.