Illinois Casinos Sue Blagojevich Seeking $267 Million

Four Ilinois casinos say former Governor Rod Blagojevich took campaign money from a track owner to levy a tax on them subsidizing tracks, and they are suing to recover the gambling revenue they were forced to sacrifice.

Four of Illinois' nine operating casinos have banded together in a lawsuit against disgraced former Governor Rod Blagojevich and race track owner John Johnston. The gambling venues say the two conspired to swindle them out of $89.2 million that Blagojevich funneled to race tracks in exchange for campaign contributions by Johnston.

Blagojevich signed Racing Acts in both 2006 and 2008, giving three percent of the casinos' gross to state horse racing tracks. Casino attorneys say the ex-governor made the decision in return for payments of $125,000 and $100,000 to the politician's campaign fund, "Friends of Rod Blagojevich."

The Empress Casino in Joliet, Harrah's Casino in Joliet, Hollywood Casino in Aurora, and the Grand Victoria Casino filed the suit and named The ex-governor, the track owner, the campaign fund, and the race tracks as defendants. Casino representatives said at the time that the fees were a result of political double-dealing, and paid only under protest.

Records show that Johnston's two payments to the campaign fund were made each less than thirty days after Blagojevich signed the acts.

The suit is seeking triple damages, in the amount of $267 million. But the $89.2 million already paid is being held by the state treasury, and the casinos want assurances the money will be frozen until the case is heard.

In order to hold the funds, the casinos' lawyers have asked for an injunction, fearing that the tracks would never be able to repay the money if its dispersed and then judgement is found against them.