Revived Lawsuit Could Halt Waukegan Casino Development

Full House Resorts appeared all in on a new casino complex in Waukegan, but a lawsuit may force the Las Vegas company to lower its wager.

The company was poised to begin its planned $400 million “American Place” project later this year after Waukegan officials awarded Full House a casino license in 2021. But a previous lawsuit by the Forest County Potawatomi Community has been revived by the Illinois Gaming Board, which could halt construction and make officials restart the selection process, the Chicago Sun-Times reported.

The Potawatomi filed a federal lawsuit after Waukegan passed up their bid to build a casino in the northern Chicago suburb, despite scoring well on a city-hired consultant’s rating system. They also filed a lawsuit in Cook County, trying to prevent the gaming board from issuing the awarded license.

The tribe alleged that the “casino certification process was a sham” and that former Waukegan Mayor Sam Cunningham told city council members which bids to approve. A Cook County judge ultimately dismissed the case, and the legal dispute appeared to be over.

However, the state’s First District Appellate Court revived the lawsuit on July 28. While the court didn’t validate claims of a shammed election process, it ruled that the tribe has standing to continue the case, the outlet said.

Waukegan attorneys have pushed back against the allegations, calling them “factually suspect” and intended to block any casino project from competing with the Potawatomi casino in Milwaukee.

Full House has been operating a temporary casino in the suburb since February, netting more than $30 million in revenue through June. The company has hoped to complete the permanent casino in 2025, which is set to include “ultra-luxurious” villas and a helicopter landing pad, along with a slew of gambling games. But If the Potawatomi win the case, the application process could start over. Full House CEO Dan Lee isn’t overly concerned, though.

“We haven’t started construction yet, but we are actively designing it,” Lee told investors during a quarterly earnings call. “I think ultimately the suits will end up being resolved and then everything can go forward.”

—Quinn Donoghue