CHICAGO (AP) – A judge in a long-running civil case has ruled decisively against casinos that claimed Illinois legislators passed laws benefiting competitors in the racetrack industry under pressure from Rod Blagojevich as the then-governor sought to cut pay-to-play deals.
The four casinos filed the suit in 2009 asking the U.S. District Court in Chicago to freeze $90 million they paid in a tax imposed by the Legislature. The money was slated to go to the five racetracks, which were struggling financially.
But Judge Matthew Kennelly said in a 17-page ruling posted late Monday that the casinos had failed to prove a link between lawmakers’ decision to impose that tax in 2006 and 2008 and Blagojevich’s push for campaign donations from racetracks.
“(The casinos) have offered no evidence that Blagojevich or others acting on his behalf influenced legislators to vote for this legislation,” Kennelly wrote.
Racetracks and casinos had battled in Springfield for years, with the tracks claiming the advent of legal gambling in Illinois lured away their patrons and made it tougher for them to make money.
With his finding, Kennelly tossed the last remaining civil count of racketeering. All other allegations in the original lawsuit had been previously dismissed.
Blagojevich, who was arrested months before the casinos sued, is now serving a 14-year prison term for corruption, including for bribery conspiracy for attempting to extort racetrack owner John Johnston.
Johnston is a defendant in the related civil case ruled on by Judge Kennelly. Johnston’s attorney, William McKenna, Jr., welcomed the judge’s finding, saying it should finally end the complex, four-year legal saga.
“It’s important to understand, my client was a victim,” McKenna said. “Blagojevich’s crime was not getting a bribe – but attempting to extort my client.”
Johnston, who testified against the ex-governor at his criminal trials, did not pay the $100,000 Blagojevich pressed him for in 2008; earlier contributions were not made with the understanding Blagojevich would make official decisions to benefit the racetracks, McKenna said.
The casinos have a month to decide whether to appeal Kennelly’s ruling. The casinos’ attorney, Robert Andalman, declined comment Tuesday.
The plaintiffs include Empress Casino Joliet Corp., Des Plaines Development Ltd., Hollywood Casino-Aurora Inc., and Elgin Riverboat Resort-Riverboat Casino.
___
Follow Michael Tarm at www.twitter.com/mtarm .
Copyright 2013 The Associated Press.
