Capitol Fax.com - Your Illinois News Radar » Pritzker hopes to unload casino stake by December
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Pritzker hopes to unload casino stake by December

Monday, Apr 23, 2018

* Background from the Daily Herald

The Grand Victoria Casino in Elgin has been sold for $327.5 million.

MGM Resorts International along with its venture partner are selling the casino to Eldorado Resorts.

The cash deal is expected to close within 12 months. […]

The casino, which opened to the public Oct. 6, 1994, was once a bustling venue. However, it has had to contend with competition from Rivers Casino, which opened in 2011 in Des Plaines, and from the video gambling industry.

Grand Victoria Casino posted $168.7 million in revenues last year, up from $163.5 million in 2016, according to data from the Illinois Gaming Board. The casino’s revenues steadily declined since 2007, when they reached a peak of $436.7 million.

* WBEZ

Pritzker’s billionaire family has held financial interests in casinos for decades. He now invests in a company that holds a roughly one percent stake in the Grand Victoria Casino in Elgin, according to financial disclosures and his campaign.

That means Pritzker could reap nearly $3.27 million from the potential $327.5 million sale of the northwest suburban casino to a Reno, Nev.-based gambling company called Eldorado Resorts, Inc. The deal announced this week still requires Illinois Gaming Board approval.

If the deal goes through by the end of 2018, as planned, the transaction eliminates a thorny conflict for Pritzker should he win.

But if the deal collapses or hits a snag and Pritzker is elected in November, he could run into ethical conflicts once he takes office in January. That’s because governors have the authority to appoint members to the state Gaming Board that regulates casinos, and he’d inevitably be drawn into perennial discussions at the statehouse about gambling expansion that could impact his investment.

Such a scenario would make Pritzker the first known Illinois governor to hold an interest in a state casino license. […]

“If elected, JB will divest from any asset he personally owns that does business with the state of Illinois or would receive any kind of government benefit from the state,” [Pritzker spokeswoman Galia Slayen] wrote.

This is a topic I hadn’t really given much thought to over the months. If elected, he’ll appoint Gaming Board members and will undoubtedly have to deal with the gaming issue.

So he’s wise to get rid of that ownership interest, even if it is only 1 percent of the Elgin casino (and his $3.27 million “windfall” is less than a thousandth of his reported net worth). If the sale hits a snag, he’ll have to come up with a new strategy to avoid any appearance of conflict or an actual conflict.

Your thoughts on this?

- Posted by Rich Miller        

18 Comments
  1. - @misterjayem - Monday, Apr 23, 18 @ 11:52 am:

    Your thoughts on this?

    He should take that measly $3.27 million to the track and see if he can parlay it into some real money.

    – MrJM


  2. - Oswego Willy - Monday, Apr 23, 18 @ 11:57 am:

    ===This is a topic I hadn’t really given much thought to over the months.===

    For about 3 seconds I thought this was a Pritzker quote.

    Things I’ve learned about the Pritzker campaign;

    The pre-running preparation and oppo research was a failure.

    There is a lacking of what things mean in the run-up (toilets, state income taxes, holdings regulated by state agencies)

    The picture, here, in this framing, is a rich guy wanting to be governor with limited or tunneled vision what a pre-run prep should look like in fundamentals.

    A head scratcher to say the least.


  3. - 47th Ward - Monday, Apr 23, 18 @ 12:03 pm:

    ===Such a scenario would make Pritzker the first known Illinois governor to hold an interest in a state casino license.===

    IIRC, Governor Otto Kerner owned a piece of some Illinois racetracks. At least in this case, we know about Pritzker’s ownership BEFORE we get to vote for him.

    Would that all candidates for major office divest themselves of potential conflicts as Pritzker is doing. Trump is likely in violation of the Emoluments Clause but Congressional Republicans are too busy booking meetings at Trump properties to notice.


  4. - Not a Billionaire - Monday, Apr 23, 18 @ 12:04 pm:

    I would take it off his hands if the deal flops or…he could just donate it…


  5. - Henry Francis - Monday, Apr 23, 18 @ 12:05 pm:

    All he has to do is put it in a “blind trust” and keep it off the back porch of the governor’s mansion and he should be fine. Right?


  6. - Back to the Future - Monday, Apr 23, 18 @ 12:07 pm:

    I am sure Pritzker got the license through an open
    competitive process and this wasn’t yet another example of
    Insiders feasting on taxpayers.
    Electing Pritzker is not the answer to the corruption problems that has existed in Illinois for a long long time.
    Rauner is a terrible alternative. Maybe a third party candidate more in the mainstream than Rauner or Pritizker will show to give voters a choice.


  7. - Cocoa Dave - Monday, Apr 23, 18 @ 12:18 pm:

    I’d ask Pritzker in addition to his anticipated $3.27 million ownership interest payment, how much total in dividend payments has he received over the years? I’d bet it ain’t chump change.


  8. - Bag It Up - Monday, Apr 23, 18 @ 12:19 pm:

    For JB, the real appeal of owning a stake in a casino is unlimited access to the all you can eat buffett.


  9. - Perrid - Monday, Apr 23, 18 @ 12:20 pm:

    Wonder what alternatives he has to divest if this deal doesn’t go through. I assume selling interest in a casino is harder than selling stocks, but I really have no idea.


  10. - Montrose - Monday, Apr 23, 18 @ 12:29 pm:

    Bag it Up - Really? What are you, a fifth grader?


  11. - Cocoa Dave - Monday, Apr 23, 18 @ 12:29 pm:

    He could donate his interest to charity and take a tax deduction. Trust me he has already made many times his original investment off of his ownership interest. He’s probably made multiples of the $3.27 million. At one time that casino was practically minting money.


  12. - Dupage Saint - Monday, Apr 23, 18 @ 12:31 pm:

    So he divests yet his family still has interests. So how does this ever play out if Chicago gets a casino? That would hurt his family’s gambling interests. Of course odds of Chicago getting a casino without a Pritzker interest probably small. No harm no foul


  13. - Huh? - Monday, Apr 23, 18 @ 12:33 pm:

    Is the 1% casino ownership held personally or part of Hyatt trusts? If part of Hyatt trusts, no big deal. If personally owned, should put into blind trust.


  14. - Concerned Dem - Monday, Apr 23, 18 @ 1:15 pm:

    Gift it to any of the number of social service orgs that Rauner stiffed over the last three years.


  15. - Anonymous - Monday, Apr 23, 18 @ 2:29 pm:

    I could be mistaken but pretty sure him being a 1% owner means he has nothing to say about the operations of the casino, including whether or when a sale is made. And since this is obviously not his deal, I’m sure he also had nothing to say about getting this license in the first place. Just saying.


  16. - Hamilton - Monday, Apr 23, 18 @ 3:34 pm:

    Give the 1% ownership to the Grand Victoria Foundation and count it as part of the 20% of profit required to give to the Foundation.


  17. - A guy - Monday, Apr 23, 18 @ 3:51 pm:

    Transfer it. It’s the cleanest, easiest way.


  18. - cc - Monday, Apr 23, 18 @ 11:44 pm:

    What 47th ward said. No capfax back then so always wondered how that all came about and was it broken laws or politics.


Sorry, comments for this post are now closed.


* Study: Illinois has 8th most regressive state and local tax system
* Kanye West contributes to Chance-backed mayoral candidate Amara Enyia
* More dissonance on Rauner's right flank
* SUBSCRIBERS ONLY - Fundraiser lists and a supplement to today's edition
* Rauner's minority hiring record checked, and new ads from both candidates on race
* Gov. Ricketts?
* Raoul heads into home stretch with new negative spot
* Question of the day
* Gov. Rauner campaigns with "extreme" Republican in Lake County
* Illinois Credit Unions: Giving Back to the Communities We Serve
* Downstate newspapers appear to be picking the lesser of two evils
* Caption contest!
* *** UPDATED x2 *** Plaintiffs holding press conference today
* Maybe have a long chat with the governor about this?
* Pritzker campaign touts party-building money
* Learn from this, please
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* *** LIVE COVERAGE ***
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............
<


Loading


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress




Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller