Potawatomi Lawsuit Could Derail Illinois Casino Selection

The city of Waukegan, Illinois has narrowed the choices for a casino license to Full House Resorts (American Place at left) and Lakeside Casino LLC. Meanwhile, the Potawatomi’s federal lawsuit against the city is moving forward.

Potawatomi Lawsuit Could Derail Illinois Casino Selection

When the city of Waukegan, Illinois requested applications for a casino license after the legislature approved it as one of the locations for a new casino, the Forest County Potawatomi Community submitted a proposal. It claimed Lake County and the Waukegan area were part of its ancestral home.

The tribe’s application was rejected. Operators of a lucrative casino in Milwaukee, which attracts Lake County residents, the tribe filed a lawsuit against the city of Waukegan, Illinois in U.S. District Court in Chicago in 2019. The lawsuit contends Waukegan officials rejected the tribe’s proposal because it used incorrect information presented by its casino consultant. But city attorneys said the suit is invalid and that the consultant what information was available at the time.

Some discoveries and depositions have taken place for the lawsuit. Meanwhile, the contenders for the Waukegan casino have dwindled to Las Vegas-based Full House Resorts and Lakeside Casino LLC, aka Northpoint, led by former Democratic state Senator Michael Bond. Late last month, the Churchill Downs and Rush Street Gaming partnership, group, which operates Rivers Casino in Des Plaines, withdrew its proposal for a Waukegan casino after the Chicago Bears announced the team would purchase Arlington International Racetrack in Arlington Heights.

The casino will be built on the 28-acre city-owned Fountain Square site. A recent economic study indicated 10 jobs would be created for every $1 million spent, an estimated, 2,800 jobs when the casino is operational. In addition, revenue generated by gaming, sales and lodging taxes, plus food and beverages, would total nearly $24 million.

If the Potawatomi are successful in court, a federal judge could determine the city’s selection process was not valid and toss out all of the applicants, forcing the city to start from the beginning. Or, the judge could reject the entire lawsuit.

At a recent Waukegan city council meeting, tribal consultant Ray Vukovich said, even though the tribe is suing the city, “the Potawatomi are still very much interested in partnering with Waukegan to bring a casino to the city. Potawatomi has reviewed the state gaming law and firmly believes it is not too late for Waukegan to send Potawatomi to the gaming board and let the experts decide what would be best for Waukegan and Illinois.”

Representatives of the two finalists will present their proposals to the Illinois Gaming Board in a public meeting this week. The board could announce its decision by the end of the year. But observers said, keep an eye on the Potawatomi lawsuit.