* Background is here and here if you need it. Press release…

The Illinois Gaming Board (IGB) has repeatedly violated the state’s Freedom of Information Act and abused the FOIA process by improperly releasing and withholding certain information to the detriment of a licensed terminal operator, according to a new lawsuit. The plaintiffs, Gold Rush Amusements, Inc., and its executive, Rick Heidner, allege the IGB has abused FOIA to publicize negative information about them, while also denying their legitimate FOIA requests as part of an orchestrated campaign.

The new lawsuit against the IGB comes three weeks after Gold Rush and Mr. Heidner filed a different lawsuit against the agency, alleging that an IGB employee intentionally and illegally leaked their personal and sensitive financial information as part of a data breach. The new lawsuit alleges that the IGB willfully and intentionally violated FOIA by failing to produce all non-exempt public records relating to three requests Gold Rush and Mr. Heidner submitted for information about the data breach and the IGB’s unequal treatment of them compared to other licensees. The case was filed yesterday in Cook County Circuit Court.

“The IGB has used FOIA as a sword to quickly disseminate harmful information about Gold Rush and Mr. Heidner, yet it hides behind the shield of extensions and thin assertions of exemptions when Gold Rush and Mr. Heidner seek legitimate information from the IGB via FOIA,” the lawsuit states.

According to the complaint, the IGB has engaged in a pattern of targeted actions against Gold Rush and Mr. Heidner, including unfairly contributing to negative media coverage of them, treating them differently compared to other licensees, and illegally disclosing sensitive personal information belonging to Mr. Heidner, his family, and business associates.

In December 2019, the suit alleges, the IGB responded to a FOIA request by the Chicago Tribune by providing a copy of a disciplinary complaint against Gold Rush, which was not otherwise publicly available, “a mere 33 minutes” after the reporter’s FOIA request was submitted. This occurred immediately after an IGB official allegedly tipped-off the reporter about the existence of the disciplinary complaint. The tip prompted the reporter to submit a FOIA request, followed by a text message to the official, confirming that the FOIA was submitted. The tip-off, the Tribune’s FOIA request, and the IGB’s response all occurred in rapid succession the day after the IGB initiated its disciplinary complaint. That unfounded complaint against Gold Rush seeks the severe penalty of revoking Gold Rush’s license despite its well-established record of compliance. By inviting the Tribune’s FOIA request, the IGB was complicit in ensuring that its disciplinary complaint quickly made news, and its conduct appears to conflict with its own policies governing investigation documents and media inquiries, according to the lawsuit.

Less than a week later, counsel for Gold Rush and Mr. Heidner submitted a FOIA request for communications between the IGB and the Tribune to learn how information relating to the disciplinary complaint was shared, as well as communications between the IGB and five specific individuals with the Office of Illinois Gov. J.B. Pritzker. However, that FOIA request did not receive the same expedited review and response by the IGB as the Tribune’s request did the previous week.

The IGB’s slower, incomplete, and cavalier responses to the plaintiffs’ FOIA requests have hindered the plaintiffs’ ability to defend their reputations and Gold Rush’s terminal operator license. “When the IGB ignores the mandates of FOIA, public access, government transparency, and accountability to the citizens of Illinois―the core principles of FOIA―are the real victims,” the suit states.

As part of its unfair treatment of Gold Rush and Mr. Heidner, the IGB has consistently responded to their legitimate FOIA requests by delaying responses, asserting inapplicable exemptions, and making incomplete productions. Two of the alleged FOIA violations relate to Gold Rush and Mr. Heidner’s legitimate requests for information about how the IGB reviewed and handled a sale transaction involving one of its competitors. According to the lawsuit, the IGB responded by invoking an inapplicable exemption and refusing to provide any documents to the plaintiffs.

In December 2019, Gold Rush reported to the IGB that a competitor had engaged in a sale transaction that constituted an illegal inducement under Illinois gaming laws and regulations. According to the lawsuit, Gold Rush had confirmed that a November 2018 deal involving Laredo Hospitality Ventures, LLC, a chain of video gaming establishments; Illinois Café and Service Company, LLC, another chain of establishments; and Midwest SRO, LLC, a competing video gaming terminal operator, was structured to facilitate Midwest’s payment of millions of dollars to gaming establishment owners to become the terminal operator for their establishments.

The lawsuit seeks a declaration that the IGB has violated FOIA, an injunction prohibiting the agency from withholding responsive public documents, an order directing the IGB to immediately produce responsive documents, as well as civil penalties and reasonable attorneys’ fees and costs.