Delays with Permanent American Place Casino in Waukegan

By Jane Shaw Senior Editor Updated: 07/15/2024

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American Place Casino in Waukegan

It has been reported that the development of the permanent American Place Casino in Waukegan, Illinois, is currently on hold.

The news comes as Full House Resorts deals with ongoing litigation, which is set to cause delays. The legal issues stem from a lawsuit filed by the Forest County Potawatomi, a Wisconsin-based tribal gaming operator, which was a rejected bidder for the casino license.

In October 2019, the Potawatomi tribe filed a lawsuit against the city of Waukegan, claiming the bidding process was unfairly conducted and essentially ‘rigged’. The tribe, which operates the Potawatomi Casino in Milwaukee, argued that the selection process did not give them a fair opportunity to compete for the license.

The dispute initially saw little progress in the courts as a Cook County Court judge dismissed the suit outright without a hearing. However, the case gained traction again when the state appeals court last year ruled in favor of the tribe, allowing them to present their case in court.

Too Much Uncertainty

The legal challenge has led to Full House Resorts pausing construction on the permanent facility. The company had already launched a temporary venue, The Temporary by American Place, in February 2023.

Full House’s senior vice president and chief development officer, Alex Stolyar, said that there was too much uncertainty surrounding the development at present. He added that the city and state were working as fast as possible to get it sorted out.

He said,

As long as the litigation is ongoing, there is too much uncertainty around the development. Unfortunately, this litigation has delayed our plans, but we appreciate the effort of the city and state working as quickly as they can to get this restarted.

However, the timeline for a resolution is unclear as the Illinois Supreme Court is currently in recess until September. This means that officials might not make a decision until the end of the year.

Further Complications Add to the Issues

Further complicating matters, the Potawatomi tribe has also pursued a civil rights lawsuit against the city in federal court. This case will most likely not proceed until after the state supreme court has made its decision on the initial lawsuit.

Should the courts eventually rule in favor of Full House Resorts, the company estimates that it would take an additional two and a half to three years before the permanent casino could become operational.

The basis of the tribe’s legal challenge in the state lawsuit includes allegations that the city council relied on a flawed and inaccurate third-party report, which they claim undervalued their bid.

Moreover, in a separate federal lawsuit, they have accused Waukegan Mayor Sam Cunningham of improperly influencing the city council’s decision-making process.

The lawsuit alleges that Cunningham directed council members to favor a competing bid by former state senator Michael Bond, who is associated with Tap Room Gaming and had previously contributed to Cunningham’s campaign. Although Bond’s bid was ultimately rejected, it was considered over the Potawatomi Tribe’s proposal.