Emerald cashes in its chips

Emerald Casino has given up the ghost.

The company that battled Illinois authorities for most of this decade for the right to run a casino in Rosemont officially threw in the towel a few weeks ago, telling Illinois gambling regulators they would not contest the state's revocation of its license any further.

As a result, the Illinois Gaming Board has issued a request for proposals from investment bankers to provide the state with advice on how best to auction off the contested gambling license -- the state's 10th and the only unused license.

"We could probably keep this (legal action) cooking for another year," Emerald attorney Bob Clifford said Monday. "In the end, we just weren't persuaded the courts were going to rule for us."

Emerald's license was revoked after the gaming board discovered hidden investors with ties to the mob, authorities said. Various deals to sell the license to another owner fell through, and Emerald kept the license tied up in bankruptcy court -- causing the state to lose an estimated $200 million a year in taxes, some officials say.

While Clifford signaled his client was out of the fight, he said he'll watch with interest how the board deals with Rosemont.

Attorney General Lisa Madigan -- who helped direct the legal fight against Emerald -- once indicated part of her problem with the proposed deal was Rosemont itself and its alleged ties to organized crime. Then-Rosemont Mayor Donald Stephens strenuously denied the accusation.

As Clifford and Rosemont attorney Bob Stephenson read the law, state law still puts the license in Rosemont, although the board does have the power to relocate it, Clifford said.

But that will take an affirmative vote by the board, said Clifford, and Illinois Gaming Board Chairman Aaron Jaffe has said the problem was with Emerald, not Rosemont.

"We'll see if (Illinois Gaming Board) Chairman Jaffe has the courage to stand behind his public words," Clifford said.

Stephenson said any bidder can propose relocating the license, and the gaming board cannot pick the location first and then solicit bids for the location.

"It's up to the bidder," Stephenson said.

Gaming Board spokesman Gene O'Shea didn't rise to Clifford's bait and comment directly on Rosemont but issued a general statement on the 10th license.

"Now that the license has been revoked, it is held by the state of Illinois. ... The license can be sought by any bidder at any location in Illinois, except along the shores of Lake Michigan," O'Shea said.

The state's asked investment bankers to submit their proposals by Jan. 14.