* Crain’s…

Asserting that the Illinois Gaming Board faces the biggest challenge to its credibility in decades, an activist group with church connections is urging the board to go slow and potentially block a bid by Bally’s to operate Chicago’s proposed casino.

In a letter to the board, Washington, D.C.,-based Stop Predatory Gambling and Illinois Churches in Action charge that Bally’s is “financially wobbly,” has run afoul of regulators in Rhode Island, and would hold “undue economic influence” in Illinois gaming business if the board grants Mayor Lori Lightfoot’s request to award the company the city license.

“This board must conduct a full and thorough suitability investigation and stand up against the pressure to hastily issue a license,” the groups wrote. The seven-page note compares the situation to another two decades ago, when officials initially signed off on the proposed Emerald Casino in Rosemont under strong political pressure only to have its license ultimately pulled amid allegations that some of those involved had ties to organized crime.

The letter does not raise any questions about Mafia involvement. But it does cast a light on a series of other matters that potentially could impact the board.

* The letter alleges Bally’s application had major deficiencies and “lack of candor” …

The Bally’s Corporation deficient application for a License for a new casino in the city of Chicago on August 10th represents the biggest challenge to the Illinois Gambling Board’s regulatory authority and credibility since the proposed Emerald Casino in Rosemont.

Much like the characters deemed unsuitable in the Rosemont proposal, executives with the Bally’s Corporation have approached their license application like they are entitled to a casino in Chicago, including taking steps to exert pressure on the Board to create the impression their licensure in Chicago is “a done deal.”

Because all applicants and licensees have a duty to disclose and maintain suitability for licensure, we strongly urge this Board and your investigators to follow your precedent to conduct a full, thorough, and transparent investigation into the major deficiencies and lack of candor in Bally’s August 10th application that we have detailed below.

We ask the Board to pay special attention to the conduct of Bally’s executives and investors, the company’s affiliation with unregulated and unlicensed online gambling networks, and its wobbly financial condition to honor the promises and representations made to the public and the Chicago City Council. We also urge the Board to hold extensive public hearings and fact-finding hearings during this licensing process.

* The letter includes reasons why Bally’s August 10th application requires a Board investigation…

- Restrictions on Bally’s Gambling Licenses
- Bally’s History of Bankruptcy
- Bally’s Disregard for the Culture of Compliance Central to the Illinois Gambling Board’s Mission and Regulatory Process in Its Investor Presentation Disclosures and During the Company’s August 4, 2022 Earnings Call
- Bally’s Affiliation With Unregulated and Unlicensed Online Gambling Operations
- The Economic Concentration of Bally’s Chairman and Largest Shareholder, Soohyung Kim

* More…

Bally’s has not received approval from the Illinois Gambling Board to do anything in Chicago. However, as seen below in its recent SEC-registered filings the company states plainly: “Initial facility opens JUNE 2023” and the “Permanent facility opens JUNE 2026.” Companies with a culture and history of compliance recognize the regulatory process takes time and refrain from openly pressuring state gambling regulators with definitive opening dates.

In addition to touting casino opening dates in its SEC filings, the president of Bally’s Chicago Holding Company, Amet Patel, disclosed during the company’s August 4, 2022 quarterly investor call that Bally’s is ordering gambling equipment, supplies and other materials to support a casino in Chicago. This investor call took place six days before Bally’s application was even submitted to the Illinois Gambling Board!

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