The Illinois Gaming Board has taken action to revoke the operating license of the video gambling operator Rick Heidner following allegations that he had offered an unlawful incentive of $5 million to the gambling parlor chain’s owner.
The disciplinary action that has been started by the state gambling regulatory body is focused on a deal under which Gold Rush Gaming that is owned by Mr. Heidner would have its electronic gambling terminals taken out of a total of 44 machine spots of Laredo Hospitality Ventures. Mr. Heidner was notified about the action on November 16th, 2018, with a Laredo’s Chief Executive Officer informing Heidner that his company’s relationship with Gold Rush would be ended following an ownership change.
As a result, members of the gambling regulator have been informed that the agreement’s termination would result in considerable revenue loss for Gold Rush.
Approximately two weeks after the notice, Mr. Heidner and the new owner of Laredo met to discuss a possible sale of Laredo for a larger amount than the new owner of the company had paid for it. The offer, however, was rejected by the new owner. Later on the same day, Laredo Hospitality Ventures handed a written notice about its decision to terminate their agreement with Heidner, who contacted Laredo’s seller, Gary Leff, and provided him with details of the offer.
Gold Rush’s Owner Allegedly Used Unlawful Incentives to Keep Its VGTs at Laredo Premises
For the time being, businesses in Illinois are not allowed to own both the company that supplies gambling machines and the premises where video gambling terminals are placed.
A spokesman for Mr. Heidner, however, claims that the owner of Gold Rush has done nothing wrong but confirmed that a bid to purchase Laredo was discussed in November 2018. According to the spokesman, the allegations faced by Heidner were a campaign of one of his rivals who had been willing to replace the video gambling machines of Gold Rush at the locations of Laredo.
According to allegations faced by Heidner, the VGTs owner breached the Video Gaming Act prohibition to offer any inducements to an establishment to place any video gaming machines here. The second allegation cites a prohibition that is almost the same. Under it, licensed VGT operators are not allowed to offer anything of value to licensed establishments to locate or maintain their machines at that location.
Illinois gambling regulatory authority claims that Heidner had violated these prohibitions and suggested that Gold Rush Amusements should say goodbye to its VGT license. The video gaming machine supplier was given 21 days to respond to the accusations.
This is the latest obstacle faced by the owner of Gold Rush. A couple of months ago, Mr. Heidner’s proposal involving a casino and horse racing track in Tinley Park got rejected by Governor J.B. Pritzker.
