Capitol Fax.com - Your Illinois News Radar » It always helps to have friends
SUBSCRIBE to Capitol Fax      Advertise Here      About     Exclusive Subscriber Content     Updated Posts    Contact Rich Miller
CapitolFax.com
To subscribe to Capitol Fax, click here.
It always helps to have friends

Tuesday, Mar 3, 2020 - Posted by Rich Miller

* ProPublica Illinois’ Jason Grotto

Andrew Rubenstein rang the opening bell at the New York Stock Exchange last November, then pumped his fist and cheered. He had much to celebrate. In a decade, the company he founded and led, Illinois-based Accel Entertainment, had grown from a tiny startup into the largest video gambling operator in the nation. Accel had also become the country’s first video gambling operator to be publicly traded. With the backing of investors, Accel now hopes to bring video gambling to other cash-strapped states hungry for new sources of revenue.

Few would have predicted Rubenstein’s fledgling enterprise to emerge as the industry leader in 2009, when Illinois legalized video gambling outside of casinos. He had no experience in the gambling business and no apparent ties to companies that, before legalization, had provided bars and restaurants with “gray” machines, simulated video slots and poker devices that were legal but widely known to be used for illegal gambling.

Rubenstein, according to the company, used a combination of savvy hires, well-timed acquisitions of other operators and infusions of capital from family, friends and private equity firms to catapult Accel to the top of the heap.

But records obtained by ProPublica Illinois, as well as interviews with current and former Accel employees who asked to remain anonymous, reveal that Rubenstein and his company also took advantage of connections at the Illinois Gaming Board. They did so using an unusual degree of access to a key board attorney during video gambling’s earliest days, when regulations were being drafted and the competition to lock up gambling locations was at its fiercest.

In addition, the company obtained internal gaming board documents about its competitors and benefited from board decisions that made it more difficult for other operators to gain a foothold in Illinois’ video gambling market.

The gaming board lawyer, Bill Bogot, was a childhood friend of Rubenstein’s. He met with Rubenstein regularly and used two private email accounts to correspond with him, answering legal questions and helping the company when it ran into snags with other regulators, according to the emails and interviews. […]

Similarly, industry insiders say the confidential documents in Accel’s possession would have given it an advantage in building its business. It’s also illegal for gaming board staff to release “protected personal information” to third parties; gaming board officials said they would investigate the leaked confidential documents and, if appropriate, forward any findings to other authorities.

“The IGB takes these allegations very seriously and will not tolerate unethical or illegal conduct of any kind,” said Marcus Fruchter, a former U.S. Securities and Exchange Commission enforcement lawyer appointed by Gov. J.B. Pritzker in May 2019 to run the gaming board.

Bogot said in an interview that he would have given any other video gambling operator the same information he provided to Rubenstein in the emails.

How many times were we told that the Illinois Gaming Board Chairman was running a super-tight ship? The Tribune editorial board was solidly behind him, and yet we keep seeing these sorts of stories emerge years later.

* Also, this

Bogot left the board in July 2013 and not long after went to work for Donna More, Accel’s gaming attorney. More was the gaming board’s first general counsel and is currently running in the Democratic primary for Cook County state’s attorney.

And was endorsed by the Tribune, of course.

       

8 Comments
  1. - All This - Tuesday, Mar 3, 20 @ 11:38 am:

    -Bogot said in an interview that he would have given any other video gambling operator the same information he provided to Rubenstein in the emails—
    And these other video gaming operators would know who he was and whether to ask him how?


  2. - SAP - Tuesday, Mar 3, 20 @ 11:43 am:

    ==And these other video gaming operators would know who he was and whether to ask him how?== And knew his private e-mail accounts so they would be tougher to FOIA?


  3. - Former Candidate on the Ballot - Tuesday, Mar 3, 20 @ 11:52 am:

    Not surprised by the past. I hope that controls and ethics are in place to not repeat. I believe the same opportunity is possible within the production/distribution/sales of all cannabis products.


  4. - Sayitaintso - Tuesday, Mar 3, 20 @ 11:59 am:

    The gambling industry has one major reason for being. Taking money from willing customers/chumps. When industry reps and politicians, et.al., use terms like “unethical”; “unacceptable”; “greedy”; “reprehensible”, it makes a cynic smirk.


  5. - Precinct Captain - Tuesday, Mar 3, 20 @ 12:15 pm:

    I won’t hold my breath for a Tribune editorial on this.


  6. - Merica - Tuesday, Mar 3, 20 @ 12:43 pm:

    Let’s be clear. There are NO ethics “controls” in place. There is no law that restricts who Mr. Bogot talks with, there is no law that would allow the GB to “clearly and easily” terminate Mr. Bogot for his corrupt actions, and if Mr. Bogot had an adult child, that person could be a lobbyist for a gaming company, a shareholder, or a manager, and Mr Bogot would not have to disclose it so long as that person lived in a different house.


  7. - Annonin' - Tuesday, Mar 3, 20 @ 1:08 pm:

    well timed More hit piece….surprised Jason did not mention that Quinn and Jaffe dragged their feet on getting video poker off the ground
    it will be fun to see how this works out


  8. - Hughes1967 - Tuesday, Mar 3, 20 @ 1:25 pm:

    The Accel stock is in decline as of today its down 4.5% not because of Corona but because of the CEO Andrew Rubenstein.


Sorry, comments for this post are now closed.


* Reader comments closed for the weekend
* Republicans denied TRO in bid to be appointed to ballot
* Isabel’s afternoon roundup
* It’s almost a law
* Credit Unions: A Smart Financial Choice for Illinois Consumers
* Was the CTU lobby day over-hyped?
* 'Re-renters' tax in the budget mix?
* It’s just a bill
* Open thread
* Isabel’s morning briefing
* Get The Facts On The Illinois Prescription Drug Board
* 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
May 2024
April 2024
March 2024
February 2024
January 2024
December 2023
November 2023
October 2023
September 2023
August 2023
July 2023
June 2023
May 2023
April 2023
March 2023
February 2023
January 2023
December 2022
November 2022
October 2022
September 2022
August 2022
July 2022
June 2022
May 2022
April 2022
March 2022
February 2022
January 2022
December 2021
November 2021
October 2021
September 2021
August 2021
July 2021
June 2021
May 2021
April 2021
March 2021
February 2021
January 2021
December 2020
November 2020
October 2020
September 2020
August 2020
July 2020
June 2020
May 2020
April 2020
March 2020
February 2020
January 2020
December 2019
November 2019
October 2019
September 2019
August 2019
July 2019
June 2019
May 2019
April 2019
March 2019
February 2019
January 2019
December 2018
November 2018
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




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