The Illinois Gaming Board is currently investigating Bally’s Chicago Casino for potentially hiring a contractor with reputed connections to organized crime, raising concerns reminiscent of past controversies in the gaming industry.
The investigation is particularly notable given that the last sizable fine issued by the board, amounting to $3.2 million, was paid by Grand Victoria Casino in 2003. This casino’s investors included current Illinois Governor JB Pritzker, although he no longer has a stake in the establishment.
As the gaming board navigates this latest situation, the severity of any fine or penalty against Bally’s will serve as a crucial indicator of how regulators view the contractor’s hiring as a mere oversight or a more serious breach of compliance.
Representatives from the gaming board have emphasized that the matter remains under investigation and refrained from providing further details. Bally’s officials have similarly declined to comment on the ongoing inquiry.
The investigation was prompted after a Chicago Sun-Times reporter discovered dumpsters associated with D&P Construction Co. Inc. on the site of the proposed permanent Bally’s casino in River West earlier this year.
Following this discovery, gambling regulators temporarily halted construction at the site after learning that D&P was not included on an approved hiring list. The FBI has long documented D&P’s ties to organized crime through connections with the DiFronzo family, and the firm’s history contributed to the failure of a previous casino project in Rosemont.
With organized crime having historically intertwined with illicit gambling in Chicago, Illinois lawmakers implemented stringent regulations to keep such influences at bay as gambling became legalized in the state and across the nation.
According to Illinois state administrative rules, gaming companies that associate with individuals of questionable reputation risk losing their licenses. Such actions are considered detrimental to public confidence and trust in the gaming sector.
In 2001, the gaming board proposed a staggering $7.2 million fine against Grand Victoria Casino for multiple violations linked to business contracts with individuals believed to have organized crime connections. After deliberations, this fine was ultimately reduced to $3.2 million, which the casino paid in 2003.
In a separate case, the gaming board proposed a $2 million fine against Rivers Casino in Des Plaines in 2015, after discovering that United Service Cos. had been contracted for security and cleaning. The firm had been managed by Richard “Rick” Simon, a former law enforcement officer known for his ties to notorious mob figures. Rivers Casino later agreed to a settlement involving a $1.65 million fine, which has been recorded as one of the largest fines imposed by the board in the last two decades.
As of May 2023, Rivers Casino reported over $209 million in total adjusted gross receipts, making it the highest-grossing casino in Illinois, while Bally’s ranked fifth with more than $52 million.
Over the years, the Illinois Gaming Board has issued several notable fines for various infractions. For instance, in 2023, Accel Entertainment, a prominent video gaming operator, faced a $1 million fine related to illegal inducements to compel establishments to use their gambling terminals. They initially faced a far heftier proposed fine of $5 million.
Other significant fines include $800,000 levied against Hollywood Casino Aurora for sending promotional mailers to self-excluded problem gamblers in 2008, and a $750,000 fine shared between Hollywood Casino Aurora and Hollywood Casino Joliet in 2017 for sending marketing materials to individuals enrolled in the board’s Self-Exclusion Program.
In 2005, the former Empress Casino Joliet was fined $600,000 for failing to maintain proper records regarding self-excluded individuals. The most recent fine recorded, amounting to $150,000, was issued in 2023 to The Temporary by American Place Casino in Waukegan due to issues with admitting problem gamblers.
As the investigation into Bally’s continues, the Illinois Gaming Board’s decision will likely send a strong message regarding regulatory compliance and the ongoing efforts to protect the integrity of legalized gaming in Illinois.
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