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* David Heinzmann at the Tribune…

An increasingly bitter lawsuit between two of Illinois’ biggest video gambling executives has put both of their licenses in jeopardy as allegations of bribes and illegal deals lodged during the case have resulted in Illinois Gaming Board investigations into both sides.

On one side of the feud is Rick Heidner, owner of Gold Rush Gaming, which leases video poker machines to more than 500 locations around the state. Gambling regulators are seeking to revoke his license to supply the machines over allegations that he offered a $5 million “illegal inducement” to his adversary in the lawsuit in an attempt to hold onto a significant chunk of his business. […]

On the other side of the battle is Dan Fischer, a dominant player in Illinois video poker cafes and the developer of a proposed Hard Rock Casino in Rockford, which is awaiting preliminary state approval Thursday. In late 2018, Fischer expanded his empire by acquiring the Stella’s and Shelby’s chain of 57 gambling cafes in a complicated maneuver that included a plan to replace Heidner’s machines at 44 of those locations with devices from a different supplier.

That deal is the source of the legal conflict between the two men, as well as a state investigation into whether the structure of the sale violated the law.

For years, the Illinois Gaming Board has touted its prowess in vetting these owners and patrolling the industry. Apparently, the Board isn’t so great at its job.

Go read the whole thing.

posted by Rich Miller
Wednesday, Feb 3, 21 @ 9:29 am

Comments

It’s good for the state to get some revenue from the gambling machines, but it seems this industry is pretty resistant to regulation. Those little storefront places always look pretty sad, though.

Wondering if all this will be surpassed by online sports betting, football betting especially. You don’t need to leave the house to lose money.

Comment by Friendly Bob Adams Wednesday, Feb 3, 21 @ 9:40 am
Over time we replaced the leg breakers with high priced lawyers in this field. Progress?

Comment by walker Wednesday, Feb 3, 21 @ 10:09 am
=== Over time we replaced the leg breakers with high priced lawyers in this field. Progress?===

Luca Brasi —> Tom Hagen?

It’s not that it’s disappointing that there seems to be a lackkng of the vetting, no, it’s the idea that the board thought they were doing a good job. That’s worse to the conclusion.

Comment by Oswego Willy Wednesday, Feb 3, 21 @ 10:23 am
Heidner certainly seems to be an excitable sort. Litigious, too.

Comment by TNR Wednesday, Feb 3, 21 @ 10:55 am
The ‘early’ solution to this would have been to have the state be the machine owner and get the machine owner cut. The state could have then contracted the machine stuff and it would have made the rules easier and the state’s share of the revenue a whole lot bigger.

I am kind of surprised that losing locations would have made things so financially challenging for machine owner/operator, that side of the business always struck me as the ‘easiest’, goes to show you I guess.

Comment by OneMan Wednesday, Feb 3, 21 @ 1:11 pm
Dotty’s Richard Fisher v Heidner Gold Rush some people are guilty of somethings but sometimes not guilty of everything Some know a lot more Gary Leff Laredo Hospitality Stellas and partner Andrew Blum Rivers Casino son of Neil Blum Rivers Casino Richard Fischer Dotty’s Friend President /Owner founder the Parlor concept Richard Craig Etsy Las Vegas Nevada Allison Esty daughter license TO for Dotty’s Parlors paid 34 million to Garry Leff Laredo Hospitality Stellas

Comment by Hughes1967 Wednesday, Feb 3, 21 @ 2:30 pm