Illinois Supreme Court clears way for permanent Waukegan casino

Work on the permanent American Place Resort and Casino in Waukegan, which has been on hold since August of 2023, can resume after the Illinois Supreme Court put an end to litigation to which casino owner Full House Resorts was never a party.

As soon as Alex Stolyar, Full House’s senior vice president and chief development officer, learned of the court decision, he said in a text work on the permanent facility will restart as the company’s temporary American Place casino continues to operate on the permanent site.

“We can now get back to working with our architects and engineers to complete construction plans,” Stolyar said. “We will be working diligently to make sure we open by the current August, 2027, deadline for the temporary casino operations.”

The Illinois Supreme Court unanimously ruled Friday in Springfield a 2021 lawsuit by Waukegan Potawatomi Casino challenging the license issued to Full House by the Illinois Gaming Board was properly dismissed by the Cook County Circuit Court in 2021.

Two days before the gaming board was set to award the Waukegan casino license in November of 2021, Potawatomi asked the Cook County Circuit Court to stop the board from doing so. The court denied the Potawatomi’s request and the license was granted.

After the board issued Full House a temporary operating permit in February of 2023, and an owner’s permit that June, the Illinois Appellate Court reversed the order saying Potawatomi had a right to a hearing. The board and city of Waukegan appealed to the Supreme Court.

With the lawsuit over, Stolyar said Full House was ready to get back to work on its permanent casino. The effort stopped during the appeal process shortly after the Waukegan Planning & Zoning Commission gave the permanent plans a positive recommendation in August of 2023.

“We are excited that this roadblock blocking economic development for Waukegan and Illinois has been removed and we can continue to work to make this exciting project a reality,” Stolyar said.

Waukegan Mayor Ann Taylor was thrilled with the court’s decision, and looks forward to the benefits the permanent resort and casino will bring to the city and the area. It goes beyond the dollars generated, she said.

“I’m so excited about this opportunity, and what it does for us,” Taylor said. “This is good not only for the income, but it will also bring a lot of tourists. It’s what we’ve really been waiting for.”

When Waukegan first started entertaining proposals from casino operators to recommend to the gaming board in 2019, Potawatomi was one of four, along with Full House, Northpoint and Rivers. The City Council recommended Full House, Northpoint and Rivers to the board, but not Potawatomi.

In its opinion, the Supreme Court wrote that Waukegan was within its rights recommending only Full House, Northpoint and Rivers, and the board acted properly considering only what the city sent.

“The (gaming) act does not grant the board the power to revoke an owners’ license on the basis of the municipality’s statutory noncompliance,” the court wrote in its opinion. “The board acted in accordance with the statute.”

Waukegan also acted properly, according to the court’s opinion. The city is free to pick one or more potential operators to recommend to the gaming board, and reject whoever it chooses. The Potawatomi had no right to complain when it did, it said.

“Potawatomi Casino filed its action two years after the certification process ended,” the court wrote.

Shortly after the Potawatomi’s application was rejected by Waukegan, it also filed a different lawsuit alleging civil right violations against the city of Waukegan. That case was moved to federal court.

Last year, the judge in the federal case issued a summary judgment in favor of Waukegan. The ruling is on appeal in the U.S. Circuit Court for the Seventh Circuit. It does not impact the license.

The permanent resort and casino will have a 20-suite, five-star luxury hotel built like a mansion, a helipad, 100 table games, 1,640 slot machines and a 1,500-seat entertainment venue, according to its submission to the Plan Commission.

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