Waukegan Potawatomi Casino, LLC v. Illinois Gaming Board

2025 IL 130036
CourtIllinois Supreme Court
DecidedJanuary 24, 2025
Docket130036
StatusPublished

This text of 2025 IL 130036 (Waukegan Potawatomi Casino, LLC v. Illinois Gaming Board) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Waukegan Potawatomi Casino, LLC v. Illinois Gaming Board, 2025 IL 130036 (Ill. 2025).

Opinion

2025 IL 130036

IN THE SUPREME COURT OF THE STATE OF ILLINOIS

(Docket Nos. 130036, 130058)

WAUKEGAN POTAWATOMI CASINO, LLC, Appellee, v. THE ILLINOIS GAMING BOARD et al., Appellants.

Opinion filed January 24, 2025.

JUSTICE HOLDER WHITE delivered the judgment of the court, with opinion.

Chief Justice Theis and Justices Neville, Overstreet, Cunningham, Rochford, and O’Brien concurred in the judgment and opinion.

OPINION

¶1 In June 2019, the General Assembly amended the Illinois Gambling Act (Act) (230 ILCS 10/1 et seq. (West 2020)) to authorize the Illinois Gaming Board (Board) to issue six new casino licenses, including one in the City of Waukegan (City). Pub. Act 101-31 (eff. June 28, 2019) (adding 230 ILCS 10/7(e-5)). Thereafter, the City issued a request for qualifications and proposals. Along with several other entities, Waukegan Potawatomi Casino, LLC (Potawatomi Casino), submitted a proposal. The City passed resolutions certifying three applicants but not Potawatomi Casino. Two years later, Potawatomi Casino filed a complaint for injunctive and declaratory relief, seeking to prohibit the Board from issuing a casino owners’ license for the City due to the City’s noncompliance with the relevant statute. Following motions by the City and the Board, the Cook County circuit court dismissed the complaint with prejudice for lack of standing. On appeal, the appellate court reversed the circuit court and remanded the cause for further proceedings. For the reasons below, we reverse the decision of the appellate court, which found Potawatomi Casino had standing to bring its injunctive and declaratory relief action.

¶2 I. BACKGROUND

¶3 The City’s July 3, 2019, request for qualifications and proposals for the new casino license included a “ ‘non-refundable application fee’ ” of $25,000. Potawatomi Casino, an Illinois limited liability company owned by the Forest County Potawatomi Community of Wisconsin, paid the $25,000 fee and submitted a proposal. On October 17, 2019, the city council held a special meeting to consider the proposals submitted by the following entities: (1) Potawatomi Casino; (2) Lakeside Casino LLC (North Point); (3) Full House Resorts, Inc. (Full House); and (4) CDI-RSG Waukegan, LLC (Rivers). The city council approved resolutions for North Point, Full House, and Rivers but not Potawatomi Casino. Four days later, the city council reconsidered Potawatomi Casino’s proposal but again declined to approve its resolution.

¶4 The approved resolutions contained common language, including a declaration certifying the named applicant to the Board. Each resolution first identified the casino’s proposal as exhibit A and noted it was attached. The resolutions later stated “the details of the mutual agreements [are] included in the Applicant’s Response to the City’s Request for Proposals, attached as Exhibit A.” The resolutions further stated, “the City contemplates final negotiations on all of the terms with the Applicant cannot take place until after the Board completes its process and issues a license.” The resolutions also declared the City and the applicant have “mutually agreed in general terms upon a permanent location for the riverboat.” Other

-2- provisions of the resolutions also used the language “mutually agreed in general terms.”

¶5 On the same day Potawatomi Casino’s proposal was denied a second time, Potawatomi Casino filed suit against the City in Lake County circuit court, alleging a violation of (1) the equal protection clause (U.S. Const., amend. XIV), (2) the Act, and (3) the Open Meetings Act (5 ILCS 120/1 et seq. (West 2020)). Among other relief, Potawatomi Casino sought a declaration that the city council’s votes on the resolutions were void, an injunction requiring the City to certify its proposal, and damages for the lost opportunity to develop a casino. The City removed the case to the federal district court. Waukegan Potawatomi Casino, LLC v. City of Waukegan, No. 20-cv-750, 2024 WL 1363733, at *1 (N.D. Ill. Mar. 29, 2024), appeal filed, No. 24-1751 (7th Cir. May 1, 2024). There, the City moved for summary judgment on all claims. Id. at *5. In a March 2024 order, the federal district court found Potawatomi Casino failed to establish a constitutional violation because (1) no reasonable jury could find that Potawatomi Casino was similarly situated to the other casino license applicants and (2) sufficient rational bases existed for the City’s decision not to certify Potawatomi Casino. Id. at *1. Ultimately, the court granted the City’s motion for summary judgment and declined to retain jurisdiction over Potawatomi Casino on the remaining state-law claims. Id. Potawatomi Casino filed an appeal with the Seventh Circuit Court of Appeals.

¶6 On November 15, 2021, the Board posted its agenda for a special meeting scheduled for November 18, 2021, indicating the Board would decide preliminary suitability for the City’s owners’ license and address issues related to the applicant found preliminarily suitable. The next day, Potawatomi Casino filed this action in Cook County circuit court against the City and the Board. In its complaint, Potawatomi Casino sought declarations finding (1) “the City has failed to satisfy the requirements for the *** Board to consider issuing a license to operate a casino in Waukegan” and (2) the “Board lacks authority to consider issuing a license to operate a Waukegan casino.” It also requested the award of temporary, preliminary, and permanent injunctions to prohibit the “Board from taking formal steps to issue a Waukegan casino license, including by issuing a determination of preliminary suitability, until the City has satisfied the *** Act’s requirements.” The circuit court denied Potawatomi Casino’s emergency motion for a temporary restraining order, and the appellate court affirmed. Waukegan Potawatomi Casino, LLC v. Illinois

-3- Gaming Board, No. 1-21-1561 (Dec. 16, 2021) (unpublished summary order under Illinois Supreme Court Rule 23(c)) (order denying Potawatomi Casino’s interlocutory appeal). Soon after, the Board issued a finding of preliminary suitability in favor of Full House. The City and the Board moved to dismiss Potawatomi Casino’s complaint (735 ILCS 5/2-615, 2-619.1 (West 2020)), and the circuit court dismissed the complaint with prejudice for lack of standing.

¶7 Potawatomi Casino appealed, asserting the circuit court erred by finding it lacked standing. The appellate court agreed with Potawatomi Casino. 2023 IL App (1st) 220883, ¶ 17. It first noted Potawatomi Casino claims a legally cognizable interest in its right to compete in a casino certification process that is fairly and lawfully conducted. Id. ¶ 11. The appellate court found the alleged injury was distinct and palpable because Potawatomi Casino pursued a significant business opportunity to fairly compete for a casino license and that opportunity was denied due to the City’s alleged failure to perform the process lawfully. Id. ¶ 12. Moreover, it concluded the injury was traceable to the City and the Board because the certifying resolutions fell short of the statutory requirements and the complaint alleges the City failed to negotiate with all the applicants. Id. ¶¶ 13-16. Last, it concluded the requested relief of repeating the application process on fair and lawful terms would be substantially likely to redress Potawatomi Casino’s injury, the lost opportunity. Id. ¶ 17. Additionally, the appellate court explained that, given the injury is the lost opportunity, Potawatomi Casino need not allege it would ultimately secure the City’s certification to the Board in a fair process.

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Bluebook (online)
2025 IL 130036, Counsel Stack Legal Research, https://law.counselstack.com/opinion/waukegan-potawatomi-casino-llc-v-illinois-gaming-board-ill-2025.