Two applicants left vying for Waukegan casino license after another drops out
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Midwest Gaming withdrew its application to operate the casino planned for Waukegan, leaving Full House Resorts and North Point Casino as the remaining applicants to build the venue on 28 acres of city-owned land adjacent to the Fountain Square Shopping Center.
The withdrawal of Midwest, a partnership between Rush Street Gaming of Chicago and Churchill Downs, because of a change in circumstances was announced at a special meeting of the Illinois Gaming Board Thursday.
It could take more than another two years before people are able to start gambling in the new casino, according to officials of the gaming board and representatives of the applicants.
Waukegan’s City Council initially approved the three applicants to the gaming board for consideration to build the casino two years ago. Since then, a variety of delays kept the state from awarding a license. Dennis Culloton, a Midwest spokesperson, said circumstances changed.
“A lot has happened since 2019,” Culloton said. “Rush Street and Churchill Downs wish Waukegan the very best. We are no longer one of the organizations pursuing the gaming license.”
After the three recommendations were made two years ago, the gaming board had a deadline of Oct. 28 of last year, but a variety of delays included including challenges arising out of the coronavirus pandemic delayed progress.
A day after the deadline passed, Marcus Frutcher, the gaming board’s administrator, said an investment banker had to be retained to evaluate the three applicants. Christiansen Capital Advisors was not selected until July.
In September, Gene O’Shea, a gaming board spokesperson, said a special meeting was set for Oct. 13 to give the applicants an opportunity to make their case to the board with the investment banker present.
Frutcher announced Midwest’s withdrawal Thursday just before he drew the names of the remaining applicants out of a hat to determine which one would make its presentation first at the Oct. 13 meeting. North Point and Full House will have 55 minutes to make their case. North Point will go first.
Alex J. Stolyar, the senior vice president and chief development officer of Full House Resorts, Inc., said Thursday he was surprised after learning of Midwest’s withdrawal.
“It was definitely unexpected,” he said. “Mathematically, it clearly improves our chances. But our proposal was always going to generate more revenues and create more jobs than any other proposal, so we have always felt confident about our chances.”
O’Shea said earlier this month the license could be awarded by the end of the year.
Stolyar said if his company receives the license, design work will begin immediately and construction will take two years to complete.
Waukegan Mayor Ann Taylor said in a statement she was unfazed by the delays. She is awaiting the decision of the gaming board.
“We will continue to let the Illinois Gaming Board work through the process of selecting who will get the casino license for the city of Waukegan,” she said in the statement.
Jimmy Centers, a spokesperson for North Point, said in February the organization would open a temporary space in Waukegan to operate a casino until construction is complete.
Bill Warner, CEO of Warner Gaming, the proposed operator of the North Point Casino, said in an email Wednesday he plans to go into more detail at the Oct. 13 meeting about its “locally focused development.”
“It will lift working families of Lake County, benefit our local small business partners and be an economic catalyst for the community,” he said in the email.
Stolyar said Midwest’s withdrawal will not change the company’s focus for the Oct. 13 meeting. Emphasis will be on what the development will offer in addition to 1,600 slot machines and 100 table games.
“Our approach was always going to be to clearly explain how American Place, with a luxury hotel, 1,500-seat venue and world-class design would create the most revenues for Illinois and Waukegan,” he said.
The 1,500 seat venue will be a place where concerts, meetings and other events can be held. Stolyar said the initial hotel will be 20 villas, between 1,500 and 2,500 square feet, designed for VIP gamblers from around the Midwest. Nearby hotels will initially provide accommodations until a 200-room hotel is built in phase two.
“The site is surrounded by over 600 ‘traditional’ rooms,” he said. “We would partner with those hotels for most of our (needed) hotel rooms.”
