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Bluhm oppo prompts Zalewski recusal, favorable bill

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Illinois

When he’s in Chicago, Michael Zalewski is a lawyer at the downtown offices of Taft Stettinius & Hollister LLP.

At the same time, in Springfield, the Democratic state representative from Chicago’s Southwest Side has taken the lead role in the effort to legalize betting on sports in Illinois.

And it’s in Springfield where the Taft law firm has dozens of lobbying clients with interests in gambling, including sports betting. […]

“In the last week there’s been a concentrated effort by certain stakeholders to accuse me of being the problem when it comes to passing the sports-betting law,” Zalewski told WBEZ on Wednesday. […]

Springfield sources say the complaints about Zalewski’s side job at Taft came from executives of the company that owns Rivers Casino in Des Plaines. A spokeswoman for Rivers Casino declined to comment. […]

According to his bio on Taft’s website, Zalewski also is “of counsel” to the firm. That means he is employed by the firm but is not a partner with an equity stake in the firm. He said he does not work for any of the firm’s many clients who have interests in Springfield. […]

After the U.S. Supreme Court cleared the way for sports betting, Zaleswki said he made sure that there were no legal or ethical hurdles to his acting as the chairman at hearings on crafting a sports-gambling law for Illinois.

“I asked and received an ethical opinion from my chief ethics officer,” Zalewski said. “I’ve complied with all ethical and legal guidelines regarding this topic, and I’ve acted with integrity and honor.”

The Rivers people have, indeed, been trying to get Zalewski out of the picture with this story for several days. Rivers has been trying to box out the sports betting companies and temporarily blowing up the process would be a positive for the casino.

Zalewski showed me an opinion from the House Democrats’ ethics officer which had no objection to his law firm work, but outlined everything he needed to do to avoid a problem. He is beloved under the dome, but going to that law firm - even as an “of counsel” - was probably not the best decision he’s ever made.

* Meanwhile, here’s Hannah Meisel…

After weeks of fighting between billionaire Rivers Casino owner Neil Bluhm and the CEOs of the fantasy sports and sports betting tech companies FanDuel and DraftKings that threatened one of Gov. JB Pritzker’s top priorities, negotiators say an omnibus gaming bill will be heard in committee Thursday morning — a bill that includes a deal favorable for Bluhm.

State Sen. Terry Link (D-Vernon Hills) told The Daily Line that while the specifics of the brick-and-mortar casino part of the bill have been solid for a week, deals with the video gaming industry and on sports betting were the last pieces of the puzzle. Deals on both on video gaming and sports betting have crystalized in the last few days, and Link said Wednesday that Bluhm will “be on board supporting this bill.” […]

State Rep. Mike Zalewski (D-Riverside), who had been helping to lead those negotiations, announced Wednesday that he would no longer participate in the talks amid criticism that his law firm represents clients with a stake in the bill, as first reported by WBEZ Wednesday afternoon.

In a series of tweets after the story published, Zalewski said he had never “worked on an issue as hard as I worked on sports betting.”

“In the last week, it became clear some thought I was the problem in the room, so I stepped back and let our gaming negotiator try to land the plane,” Zalewski wrote. “At no time did I put my thumb on the scale for anyone. You only have your integrity, the respect of your colleagues, and your word down here to get you by. I hold my head high that on sports betting, and any other issue I work on, I treat everyone with respect. I hope we get sports betting done. And I think we will. And I’ll have been a part of it. And that will be a cool thing.”

posted by Rich Miller
Thursday, May 30, 19 @ 10:58 am

Comments

While there is debate as to whether FanDuel and DraftKing are operating illegally and piling up customers that will give them a huge advantage when sports betting starts, if the existing casinos or race tracks tried to operate fantasy gaming like they do now they would all lose their current licenses. They will be so far behind in trying to get customers that they will never be able to compete.

Comment by Level The Playing Field Thursday, May 30, 19 @ 11:10 am
A cool thing from a cool Rep.

So says lobo.

Comment by Lobo Thursday, May 30, 19 @ 11:12 am
Wow…this seems very very conscientious of Zalewski. I really like seeing the ethical attention to detail. It says a lot about his character.

Comment by Honeybear Thursday, May 30, 19 @ 11:22 am
It was very nice to see a public figure not try to discredit a media source because they ran a story that was unflattering. Likewise it was nice to see a media outlet present an unflattering story about a public official without going over the top in it’s coverage.

Comment by Concerned Dem Thursday, May 30, 19 @ 11:22 am
A rich casino owner, trying to freeze out the competition and gain an unfair advantage, complains about a legislator possibly having an incentive to give some other businesses an unfair advantage. I often wonder what it would be like to live with no shame.

Comment by Perrid Thursday, May 30, 19 @ 11:23 am
Deposit this one in the “Memory Bank”. Where accounts grow with interest over time and when the time is right; Accounts are settled.

Dirty pool with a clean guy is a bad habit. Zalewski went out of his way to do everything right and be completely transparent. They shot at him anyway. Wounded is a dangerous status for an industry that will absolutely need the legislature again and again. In a future chapter I think we’ll see some recompense.

Comment by A guy Thursday, May 30, 19 @ 11:24 am
It would shortsighted if GA does not allow online wagering to FanDual and Draft Kings from the start of sports betting. The young professional watching the game on a weekend doesn’t want to make a special trip to a casino to wager on the game. He/she wants to do it from his/her phone or tablet. Without online wagering from the start Illinois will miss out on what should be a good revenue stream.

Comment by Ten Game Parlay Card Thursday, May 30, 19 @ 11:25 am
Best “served cold”

Comment by Wow Thursday, May 30, 19 @ 11:33 am
Having been in that position himself, it occurs to me that Mr. Madigan may not look kindly upon someone who pushes a negative story about a respected legislator’s practice as an attorney.

Comment by Joe Bidenopolous Thursday, May 30, 19 @ 11:35 am
Mike is a class act.

Comment by Earlyriser Thursday, May 30, 19 @ 11:36 am
–And it’s in Springfield where the Taft law firm has dozens of lobbying clients with interests in gambling, including sports betting. –

Bluhm’s no angel by any means, but you’re at a firm with “dozens” of clients with a stake in gambling? You can’t be the point person.

Comment by wordslinger Thursday, May 30, 19 @ 11:38 am
i like the way zalewski only discussed whether there was an “actual” conflict of interest. i think the point was whether there was an “appearance” of a conflict.

Comment by dying HDO Thursday, May 30, 19 @ 11:54 am
Z is cool.

Comment by Anon Thursday, May 30, 19 @ 12:03 pm
Regardless of the Mike Z controversy, the fact remains that fan duel and draft kings have been operating illegally in the state for years despite an AG opinion telling them that they’re operating illegally that allowed them to corner 100% of this market. How does that help build competition let alone fairness for other companies that played by the rules? Something also needs to be said about preserving the integrity of legal Gaming in Illinois. No one should be able just to come in and set up shop and conduct Gaming because it’s not a right and it’s not legal. You need a license. They don’t pay taxes. They’ve done business in Illinois without a license. It’s a legitimate debate about having this time out. For them otherwise the same situation that happened in New Jersey where both of these companies had a duopoly on day one and now on 80% of the market will also happen in Illinois.

Comment by Mercury Thursday, May 30, 19 @ 12:54 pm
Zalewski knew of this potential conflict of interest long ago, ow that is gets raised publicly he is distancing himself from it. Kudos to him for airing his laundry in public, but it is kinda dirty laundry.

Comment by Donnie Elgin Thursday, May 30, 19 @ 1:27 pm
Has the new gambling bill been introduced or have they just added it on to another bill? Either way does anyone know bills number?

Comment by Retired Educator Thursday, May 30, 19 @ 1:28 pm
Bluhm wants a monopoly, and he wants the GA to give it to him. Z wasn’t playing ball, so Bluhm had him taken out. End of story.

Comment by Roland the Headless Thompson Gunner Thursday, May 30, 19 @ 1:40 pm
Looks like Rivers’ lobbyists are here trying to distract from their hit job on Mike Z.

Level The Playing Field, Ten Game Parlay Card, Mercury - new screen names here on the CapFax board that are on a unified message that “regardless of the Mike Z controversy” the GA needs to help Bluhm/Rivers and hurt Fan Duel and Draft Kings.

Dirty job, but its your job. I don’t have a dog in the gaming fight.

I’ve worked with Mike Z, though, and he’s proven himself to be an honest, direct and successful legislator. Folks know he delivered this gaming bill.

Guess who will get offered the first pen after the bill signing ?

Comment by Scott Cross for President Thursday, May 30, 19 @ 1:48 pm
Scott Cross I have nothing to do with Bluhm or Rivers. And definitely nothing to do with the hit on Mike Z which I think was unwarranted. And most of those gaming clients of Taft are for regulatory reasons.
That being said the racing industry (my main concern) and casinos would never be on able to compete fairly with their head start on getting customers.

Comment by Level The Playing Field Thursday, May 30, 19 @ 2:07 pm
== Bluhm wants a monopoly, and he wants the GA to give it to him. Z wasn’t playing ball, so Bluhm had him taken out. End of story. ==

It’s actually more like fan duel and draft king want to share the monopoly the already own in Illinois and expect the GA to hand it to them. Mercury made salient points above that have mostly gone missing from this debate. If you don’t play by the rules like everyone else then you shouldn’t benefit from doing so.

Comment by Shytown Thursday, May 30, 19 @ 2:09 pm
I would like to see Mike Z run for higher office. We need more people like him statewide

Comment by Chunga Thursday, May 30, 19 @ 2:56 pm
In my view, destined for Congress…once Dan L. has decided enough is enough. Really good guy, straight shooter and as hard-working as they come.

Comment by Steve_Judd Thursday, May 30, 19 @ 6:36 pm
His colleagues greatly admire him.

Comment by walker Thursday, May 30, 19 @ 10:30 pm