Sale of three casinos await state approval

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SPRINGFIELD - As state lawmakers look to tap gambling revenues to pay for a massive construction program, three Illinois casinos are in the process of being sold.

Penn National Gaming Inc., which owns the Empress casino in Joliet, the Argosy in Alton and the Hollywood casino in Aurora, is being bought out by Fortress Investment Group.

The $6.1 billion deal awaits approval from state regulators. On Tuesday, the Illinois Gaming Board held a preliminary hearing about the proposal.

Gaming board spokesman Gene O'Shea said there is no time frame for the board to sign off on the transaction.

The purchase of the trio of Illinois casinos comes as the General Assembly has turned to gambling expansion as a way to generate dollars to build new roads, bridges and schools.

The latest plan has Illinois adding three casinos and allowing existing casinos to expand their offerings. Currently, there are nine casinos operating in the state.

After initially saying the House would consider the expansion plan this week, the legislative session was cancelled. Rebecca Rausch, spokeswoman for Gov. Rod Blagojevich said talks among leaders continue, but it is not clear if lawmakers will return to Springfield before Jan. 1.

Tom Swoik of the Illinois Casino Gaming Association said he was unaware if the state's latest push to expand gambling was playing any role in the pending sale.

"I don't know how they are viewing that," Swoik said.

The sale, however, was announced long before the casino expansion plans began to gain momentum. Penn National representatives did not respond to requests for comment.

Fortress Investment already has a presence in Illinois. The investment group owns GateHouse Media, which has scores of newspaper properties in Illinois and the United States, including the Rockford Register-Star, the Peoria Journal-Star and the (Springfield) State Journal-Register.

Kurt Erickson can be reached at kurt.erickson@lee.net or 789-0865.

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