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Wednesday, October 1, 2014

Gaming Board Did Not Violate Due Process in Denying License

In a recent case, the Illinois Gaming Board Board denied a gaming license to C. Capp's LLC. The Board relied on its rules that provide that it may not grant a license unless the Board is satisfied that the applicants is "of good character, honesty and integrity" and whose background "is not injurious to the public health, safety, morals, good order and general welfare" or "does not discredit or tend to discredit the Illinois gaming industry."  C.Capp's LLC v. Jaffe, 2014 IL app (1st) 132696 (Sept. 23, 2014).  

The applicant sued the Board, claiming that the denial of the license without a hearing violated its due process rights.  The court ruled in favor of the Board.  First, the court found that there is no protectable property interest in a video gaming terminal operator's license.  Second, there is no hearing requirement under the video Gaming Act. Third, the Board has wide discretion to issue or deny a terminal operator's license.  In this case, one of the principals in the LLC was associated with a convicted felon and worked with a company that was the subject of federal and state investigations involving gambling.  The court concluded that the decision to deny Capps the license without a hearing was not clearly erroneous.

Post Authored by Julie Tappendorf


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