The Illinois Gaming Board (IGB) recently filed a third disciplinary complaint against Chicago businessman Jeff Rehberger Jr., owner of Lucky Lincoln Gaming, which has 1,200 video gambling terminals in 200 bars, restaurants, gas stations and other locations statewide.
The board has been attempting to revoke Rehberger Jr.’s license to operate the machines for six years. Previous complaints filed in 2017 and 2019 have been held up in an “administrative review process.” In addition, a pending lawsuit filed by Lucky Lincoln contends the IGB violated the Illinois Open Meeting Act.
The three complaints contain a total of 21 counts, many related to “inducements” which would violate the IGB’s Adopted Rules on Video Gaming, the Illinois Gambling Act and the Illinois Video Gaming Act which “prohibits terminal operators from giving anything of value to a video gaming establishment as an incentive or inducement to locate (machines) in that establishment.”
Lucky Lincoln allegedly offered business owners inducements including $5,000 in cash, Rolex watches and constructing video gambling rooms.
Other counts relate to Rehberger Jr. ‘s allegedly improper relationship with a company co-owned by his father, Jeff Rehberger Sr., that operates 39 Lacey’s Place video gambling facilities.
In addition, Rehberger Jr. is also charged with witness tampering, after allegedly trying to pressure a former sales agent to change his testimony, plus not properly disclosing employee names and activities. The complaints state, “Lucky Lincoln’s conduct discredits or tends to discredit the Illinois video gaming industry and does not serve the best interests of the citizens of Illinois.”
In the most recent complaint, filed May 12, IGB Administrator Marcus Fruchter said in 2020 Lucky Lincoln illegally paid more than $21,000 to the owner of a restaurant in the Chicago suburbs to build an addition for video gambling and install the company’s machines. The IGB noted the alleged violation was a repeat offense and imposed a “limited summary suspension,” barring Lucky Lincoln from entering into any new contracts with video gambling establishments.
However, in a lawsuit filed in Cook County Circuit Court, Lucky Lincoln said a suspension would violate its rights of due process and sought a permanent injunction. On June 2, Judge Celia Gamrath issued a temporary restraining order removing the suspension while the case proceeds.
She wrote, “As stated in the Motion for Temporary Restraining Order, years have passed since the supposed bad acts occurred. There was ‘considerable confusion’ surrounding the prohibition on inducements at the time Lucky Lincoln was cited, and the alleged violation has purportedly been cured. All the while, the Gaming Board has allowed Lucky Lincoln to operate despite having two complaints pending. The balancing of interests calls for an injunction to issue to maintain the status quo until after a hearing.”
Subsequently, at the IGB’s June 15 meeting, Lucky Lincoln President Jeff Heimerdinger said the board’s attempt to suspend the company’s operations was “unprecedented.” He asked the board to post a notice on social media that the company still is in business because Lucky Lincoln’s competitors had been spreading misinformation about the suspension among current and potential customers.
“We have lost multiple opportunities, spent much of our time attempting to repair existing relationships and have employees concerned for their professional careers,” Heimerdinger said. He noted Lucky Lincoln annually generates $100 million in net terminal income and $25 million in state taxes.
The first disciplinary complaint against Lucky Lincoln, filed in 2017, includes 15 counts. Some refer to Highland Management Group, owned by Jeff Rehberger Sr. and Christine Morgan, which operates 39 Lacey’s Place video parlors. The complaint alleges Rehberger Jr. violated the Illinois Video Gaming Act by displaying “significant influence” over Highland Management Group through drafting franchise agreements, handling property leases and giving directives to employees.
Lacey’s Place also came to the attention of the U.S. Equal Employment Opportunity Commission, which in May announced the company would pay $92,964 to settle a lawsuit over pay discrimination and retaliation. According to court documents, female district managers were being paid less than their male coworkers with similar education and experience, and one female was fired for complaining about it.
Lacey’s Place also allegedly uses questionable tactics against competitors. For example, last December Rehberger Jr. bought a strip mall in Belleville under the name Midwest Real Estate Portfolio One. Pat Gotto-Sauget operates Lucky Jack’s video gambling lounge there. Earlier this year she rejected Rehberger Sr.’s request that she install Lucky Lincoln machines because she has a contract with a different provider. In April, Lacey’s Place opened in the same strip mall, two doors down. Gotto-Sauget said she’ll move when her lease expires in August. “The Rehbergers are the worst thing that ever happened to the gambling industry,” she said.
Another company owned by Rehberger Jr., Fortunate Son Partners LLC, holds two state licenses to operate marijuana dispensaries. How he was able to win the coveted dispensary licenses despite disciplinary complaints by the IGB was the subject of an investigation by WBEZ-FM radio, the Chicago National Public Radio affiliate.
Rehberger Jr. may or may not have included the complaints in the Illinois Department of Financial and Professional Regulation application; the agency denied WBEZ’s request for a copy of the application. “To be honest, it’s been about a year since we went through that. I know we responded to all of the questions truthfully and accurately,” Rehberger told WBEZ-FM at the time.
In the interview, he said that he started Lucky Lincoln in 2013, while living at his mother’s house in Highland. The company was licensed by the state as a video gambling terminal operator in 2014.
Last year, Rehberger Jr. announced plans for a $50 million development in Highland including housing, a hotel, restaurants and the flagship location of a franchise coffee shop.
In an interview with the Belleville News-Democrat, he said, “I’ve developed deep-rooted personal relationships in downstate Illinois communities, which inform my understanding of the needs of those who live there and the economic possibilities for growth. Now that I’m fortunate enough to have the opportunity to reinvest in these communities, I want Lucky Lincoln to be a part of that growth in terms of job creation, charity and economic development.”
