Illinois Gaming Board Administrator Philip Parenti Friday confirmed the board has decided not to approve the proposed settlement agreement, but is considering a counter-proposal.
"The board has rejected the current MGM proposal and is considering its own counter-proposal which is encouraging a process where other candidates can participate as part of a settlement agreement, including MGM," he said.
Mr. Parenti declined to provide details. But sources said one option might be to limit how much Chicago-based Emerald Casino Inc. could make on a sale.
Under the proposed settlement brokered by Gaming Board Administrator Mr. Parenti in January, Emerald and its investors would have made more than $455 million from the sale of its interest in the stalled Rosemont casino project while donating an additional $160 million to state coffers.
Emerald, controlled by the father-son team of Donald and Kevin Flynn and backed by a cross-section of politically connected investors, saw its plans for Rosemont derail last year when the Gaming Board rejected its application to transfer the license from a failed Galena-area casino to the suburb.
Representatives from both MGM Mirage and Emerald on Friday said they hadn't heard of the board's decision.
"There is a willing seller and a willing buyer and we hope to at some point in the near future find a resolution that's acceptable to the Illinois Gaming Board," said Emerald CEO Kevin Flynn.
Larry Suffredin, an attorney with Chicago law firm Shefsky & Froelich Ltd. who is representing MGM Mirage said, "At this point we have lawfully binding contract with Emerald and I hope this doesn't cause further litigation."