recognizing gaming licenses are lucrative and thus decisions involving their issuance are likely to result in lawsuits
How later courts described this case
- recognizing gaming licenses are lucrative and thus decisions involving their issuance are likely to result in lawsuits
Written by the judges who cited it.
The opinion
2025 IL 130036
IN THE
SUPREME COURT
OF
THE STATE OF ILLINOIS
(Docket Nos. 130036, 130058)
WAUKEGAN POTAWATOMI CASINO, LLC, Appellee, v.
THE ILLINOIS GAMING BOARD et al., Appellants.
Opinion filed January 24, 2025.
JUSTICE HOLDER WHITE delivered the judgment of the court, with opinion.
Chief Justice Theis and Justices Neville, Overstreet, Cunningham, Rochford,
and O’Brien concurred in the judgment and opinion.
OPINION
¶1 In June 2019, the General Assembly amended the Illinois Gambling Act (Act)
(230 ILCS 10/1 et seq. (West 2020)) to authorize the Illinois Gaming Board (Board)
to issue six new casino licenses, including one in the City of Waukegan (City). Pub.
Act 101-31 (eff. June 28, 2019) (adding 230 ILCS 10/7(e-5)). Thereafter, the City
issued a request for qualifications and proposals. Along with several other entities,
Waukegan Potawatomi Casino, LLC (Potawatomi Casino), submitted a proposal.
The City passed resolutions certifying three applicants but not Potawatomi Casino.
Two years later, Potawatomi Casino filed a complaint for injunctive and declaratory
relief, seeking to prohibit the Board from issuing a casino owners’ license for the
City due to the City’s noncompliance with the relevant statute. Following motions
by the City and the Board, the Cook County circuit court dismissed the complaint
with prejudice for lack of standing. On appeal, the appellate court reversed the
circuit court and remanded the cause for further proceedings. For the reasons below,
we reverse the decision of the appellate court, which found Potawatomi Casino had
standing to bring its injunctive and declaratory relief action.
¶2 I. BACKGROUND
¶3 The City’s July 3, 2019, request for qualifications and proposals for the new
casino license included a “ ‘non-refundable application fee’ ” of $25,000.
Potawatomi Casino, an Illinois limited liability company owned by the Forest
County Potawatomi Community of Wisconsin, paid the $25,000 fee and submitted
a proposal. On October 17, 2019, the city council held a special meeting to consider
the proposals submitted by the following entities: (1) Potawatomi Casino;
(2) Lakeside Casino LLC (North Point); (3) Full House Resorts, Inc. (Full House);
and (4) CDI-RSG Waukegan, LLC (Rivers). The city council approved resolutions
for North Point, Full House, and Rivers but not Potawatomi Casino. Four days later,
the city council reconsidered Potawatomi Casino’s proposal but again declined to
approve its resolution.
¶4 The approved resolutions contained common language, including a declaration
certifying the named applicant to the Board. Each resolution first identified the
casino’s proposal as exhibit A and noted it was attached. The resolutions later stated
“the details of the mutual agreements [are] included in the Applicant’s Response to
the City’s Request for Proposals, attached as Exhibit A.” The resolutions further
stated, “the City contemplates final negotiations on all of the terms with the
Applicant cannot take place until after the Board completes its process and issues a
license.” The resolutions also declared the City and the applicant have “mutually
agreed in general terms upon a permanent location for the riverboat.” Other
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provisions of the resolutions also used the language “mutually agreed in general
terms.”
¶5 On the same day Potawatomi Casino’s proposal was denied a second time,
Potawatomi Casino filed suit against the City in Lake County circuit court, alleging
a violation of (1) the equal protection clause (U.S. Const., amend. XIV), (2) the
Act, and (3) the Open Meetings Act (5 ILCS 120/1 et seq. (West 2020)). Among
other relief, Potawatomi Casino sought a declaration that the city council’s votes
on the resolutions were void, an injunction requiring the City to certify its proposal,
and damages for the lost opportunity to develop a casino. The City removed the
case to the federal district court. Waukegan Potawatomi Casino, LLC v. City of
Waukegan, No. 20-cv-750, 2024 WL 1363733, at *1 (N.D. Ill. Mar. 29, 2024),
appeal filed, No. 24-1751 (7th Cir. May 1, 2024). There, the City moved for
summary judgment on all claims. Id. at *5. In a March 2024 order, the federal
district court found Potawatomi Casino failed to establish a constitutional violation
because (1) no reasonable jury could find that Potawatomi Casino was similarly
situated to the other casino license applicants and (2) sufficient rational bases
existed for the City’s decision not to certify Potawatomi Casino. Id. at *1.
Ultimately, the court granted the City’s motion for summary judgment and declined
to retain jurisdiction over Potawatomi Casino on the remaining state-law claims.
Id. Potawatomi Casino filed an appeal with the Seventh Circuit Court of Appeals.
¶6 On November 15, 2021, the Board posted its agenda for a special meeting
scheduled for November 18, 2021, indicating the Board would decide preliminary
suitability for the City’s owners’ license and address issues related to the applicant
found preliminarily suitable. The next day, Potawatomi Casino filed this action in
Cook County circuit court against the City and the Board. In its complaint,
Potawatomi Casino sought declarations finding (1) “the City has failed to satisfy
the requirements for the *** Board to consider issuing a license to operate a casino
in Waukegan” and (2) the “Board lacks authority to consider issuing a license to
operate a Waukegan casino.” It also requested the award of temporary, preliminary,
and permanent injunctions to prohibit the “Board from taking formal steps to issue
a Waukegan casino license, including by issuing a determination of preliminary
suitability, until the City has satisfied the *** Act’s requirements.” The circuit court
denied Potawatomi Casino’s emergency motion for a temporary restraining order,
and the appellate court affirmed. Waukegan Potawatomi Casino, LLC v. Illinois
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Gaming Board, No. 1-21-1561 (Dec. 16, 2021) (unpublished summary order under
Illinois Supreme Court Rule 23(c)) (order denying Potawatomi Casino’s
interlocutory appeal). Soon after, the Board issued a finding of preliminary
suitability in favor of Full House. The City and the Board moved to dismiss
Potawatomi Casino’s complaint (735 ILCS 5/2-615, 2-619.1 (West 2020)), and the
circuit court dismissed the complaint with prejudice for lack of standing.
¶7 Potawatomi Casino appealed, asserting the circuit court erred by finding it
lacked standing. The appellate court agreed with Potawatomi Casino. 2023 IL App
(1st) 220883, ¶ 17. It first noted Potawatomi Casino claims a legally cognizable
interest in its right to compete in a casino certification process that is fairly and
lawfully conducted. Id. ¶ 11. The appellate court found the alleged injury was
distinct and palpable because Potawatomi Casino pursued a significant business
opportunity to fairly compete for a casino license and that opportunity was denied
due to the City’s alleged failure to perform the process lawfully. Id. ¶ 12. Moreover,
it concluded the injury was traceable to the City and the Board because the
certifying resolutions fell short of the statutory requirements and the complaint
alleges the City failed to negotiate with all the applicants. Id. ¶¶ 13-16. Last, it
concluded the requested relief of repeating the application process on fair and
lawful terms would be substantially likely to redress Potawatomi Casino’s injury,
the lost opportunity. Id. ¶ 17. Additionally, the appellate court explained that, given
the injury is the lost opportunity, Potawatomi Casino need not allege it would
ultimately secure the City’s certification to the Board in a fair process. Id.
¶8 The appellate court further rejected the City and Board’s argument that the
absence of a private right of action under the Act provided an alternative basis on
which to affirm the circuit court’s dismissal order. Id. ¶ 19. The court explained the
absence of a private right of action under the Act is of no consequence where
Potawatomi Casino is not bringing an independent cause of action akin to a tort but
instead is seeking to compel statutory compliance. Id.
¶9 While the appeal was pending in the appellate court, the Board issued a
temporary operating permit in February 2023 and an owners’ license on June 15,
2023, to Full House. Id. ¶ 21. After the issuance of the owners’ license, both the
City and the Board moved to dismiss the appeal as moot, asserting the appellate
court could no longer grant effective relief. Id. In its opinion, the appellate court
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explained the complaint sought a declaration that the Board lacked authority to
issue a license because of the City’s failure to comply with statutory prerequisites
in certifying applicants to the Board. Id. ¶ 22. Thus, if the court were to provide the
relief requested, the Board would be required to retract the issued license and repeat
the process. Id. Additionally, the appellate court noted the permanent casino was
still under construction and the Board can find an applicant not suitable for
licensing at the final stage of review, even after the Board has issued the applicant
a temporary operating permit. Id. ¶ 23.
¶ 10 Ultimately, the appellate court denied the motions to dismiss, reversed the
judgment of the circuit court, and remanded the cause for further proceedings. Id.
¶¶ 26-27. We granted both the City’s and the Board’s petitions for leave to appeal
pursuant to Illinois Supreme Court Rule 315(a) (eff. Oct. 1, 2021).
¶ 11 II. ANALYSIS
¶ 12 In addition to awarding the City a casino, the June 2019 statutory amendment
set forth the City’s responsibilities in the complex licensing process. Thus, we begin
our analysis by outlining the City’s role in the licensing process. Under the
amended statute, the applications for the owners’ license for the City were to be
submitted to the Board no later than 120 days after June 28, 2019, which was
October 28, 2019. 1 230 ILCS 10/7(e-5) (West 2020). The Board could consider
issuing the owners’ license to an applicant “only after” the City “certified to the
Board” the following:
“(i) that the applicant has negotiated with the corporate authority or county
board in good faith;
(ii) that the applicant and the corporate authority or county board have
mutually agreed on the permanent location of the riverboat or casino;
1
In counting days for the due date, the Statute on Statutes would begin counting the
120 days from June 29; because October 27 was a Sunday, the due date would be on
Monday, October 28. See 5 ILCS 70/1.11 (West 2018).
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(iii) that the applicant and the corporate authority or county board have
mutually agreed on the temporary location of the riverboat or casino;
(iv) that the applicant and the corporate authority or the county board have
mutually agreed on the percentage of revenues that will be shared with the
municipality or county, if any;
(v) that the applicant and the corporate authority or county board have
mutually agreed on any zoning, licensing, public health, or other issues that are
within the jurisdiction of the municipality or county;
(vi) that the corporate authority or county board has passed a resolution or
ordinance in support of the riverboat or casino in the municipality or county;
(vii) that the applicant for a license under paragraph (1) has made a public
presentation concerning its casino proposal; and
(viii) the applicant for a license under paragraph (1) has prepared a
summary of its casino proposal and such summary has been posted on a public
website of the municipality or the county.” Id.
Moreover, section 7(e-5) required the City to hold a public hearing, at least seven
days before its submission of a certification to the Board, to discuss the
aforementioned eight items, as well as any other details concerning the proposed
casino. Id. The City also had to “memorialize the details concerning the proposed
riverboat or casino in a resolution that must be adopted by a majority of the
corporate authority or county board before any certification is sent to the Board.”
Id. Once the Board received the certification or certifications from the City, its
procedures were dictated by section 7, other sections of the Act, and administrative
regulations. Having laid out the City’s statutory responsibilities, we next address
the foundational question of the owners’ license validity.
¶ 13 A. Void Owners’ License
¶ 14 Both the City and the Board assert the appellate court erred by concluding
Potawatomi Casino’s appeal was not moot after the Board’s June 15, 2023, issuance
of an owners’ license to Full House. In response to the City’s and Board’s mootness
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arguments, Potawatomi Casino asserts Full House’s owners’ license is void
because the Board acted outside its statutory authority. Specifically, Potawatomi
Casino asserts that, when an agency lacks jurisdiction or the inherent power to make
or enter a particular order, the order is void and may be attacked at any time or in
any court, either directly or collaterally. See Goral v. Dart, 2020 IL 125085, ¶ 51.
An agency’s decision is void when the agency lacked jurisdiction to make it. Julie
Q. v. Department of Children & Family Services, 2013 IL 113783, ¶ 24. In
administrative law, the term “jurisdiction” has the following three components:
“(1) personal jurisdiction—the agency’s authority over the parties and
intervenors involved in the proceedings, (2) subject matter jurisdiction—the
agency’s power to hear and determine cases of the general class of cases to
which the particular case belongs [citation], and (3) an agency’s scope of
authority under the statutes.” (Internal quotation marks omitted.) Goral, 2020
IL 125085, ¶ 41.
Potawatomi Casino contends the Board lacked the third component of agency
jurisdiction because the Board exceeded the scope of its authority by proceeding on
the applications certified by the City where the City failed to comply with the
procedures of section 7(e-5). We disagree.
¶ 15 Section 7(e-5) of the Act does not grant the Board authority to consider issuing
an owners’ license for a casino in the City until the City “has certified to the Board
the following” and then sets forth a list of actions by the City and/or applicant.
(Emphasis added.) 230 ILCS 10/7(e-5) (West 2020). Absent in section 7(e-5) is any
language requiring the Board to investigate and/or determine whether the City and
applicant completed the matters set forth in the statute. Contrary to Potawatomi
Casino’s assertion, section 7(e-5) does not grant the Board authority to consider
issuing an owners’ license only after the preconditions are satisfied. Thus, whether
the City complied with the requirements set forth in the statute is of no consequence
on the question of whether the Board had jurisdiction over the applications.
Jurisdiction depends on whether the City has certified to the Board the statutory
requirements set forth in section 7(e-5).
¶ 16 The city council approved three resolutions each certifying an applicant to the
Board for consideration for the owners’ license for a casino in the city. Potawatomi
Casino contends the City’s noncompliance with section 7(e-5) was obvious on the
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face of the resolutions. It notes the resolutions stated the City and the respective
applicant mutually agreed “in general terms.” Potawatomi Casino also points out
the resolutions identified the respective applicant’s response to the City’s request
for proposals as the details of the mutual agreements required by section 7(e-5).
While the language of the resolutions added “in general terms” to the statutory
requirements requiring a mutual agreement, the resolutions still addressed each of
the statutory requirements, purported to comply with section 7(e-5) (as noted in
Potawatomi Casino’s complaint), and certified the respective applicant to the
Board. This is not a situation where the certifications failed to address the statutory
requirements.
¶ 17 We find guidance in Newkirk v. Bigard, 109 Ill. 2d 28, 37 (1985), where this
court recognized a mining board’s order that was on its face authorized by statute
was not void and thus not subject to collateral attack. There, the plaintiffs argued
that the mining board was without authority to issue any order integrating the
mineral interests and permitting a party to commence drilling operations that did
not contain the statutorily required election provisions and equitable alternatives.
Id. at 32, 36. This court found the mining board had the inherent authority to issue
the integration order by looking at the integration statute, which provided
“[w]here *** owners have not agreed to integrate their interests *** the Mining
Board shall, for the prevention of waste or to avoid the drilling of unnecessary
wells, require such owners to do so and to develop their lands as a drilling unit,
before issuing a permit for the drilling thereon.” (Internal quotation marks
omitted.) Id. at 37.
The integration statute also gave the mining board the authority to set participation
factors and to make provisions for the payment of reasonable actual costs. Id. Given
the mining board had the statutory authority to enter the integration order, any other
statutory noncompliance with the order did not divest the mining board of
jurisdiction to issue the order. Id. at 34, 36.
¶ 18 In this case, it is section 7(e-5) of the Act that grants the Board authority to
consider issuing a casino owners’ license, and that section authorizes such action
only after the corporate authority in which the casino will be located has certified
to the Board the requirements enumerated in that section. 230 ILCS 10/7(e-5) (West
2020). The Board received three certifications from the City that appeared on their
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face to comply with the provisions of section 7(e-5). Accordingly, the Board had
jurisdiction to consider the three applications for a casino in the City, and the license
issued to Full House is not void. Next, we turn to the question of mootness.
¶ 19 B. Mootness
¶ 20 This court has recognized an appeal is moot “ ‘if events have occurred which
foreclose the reviewing court from granting effectual relief to the complaining
party.’ ” McHenry Township v. County of McHenry, 2022 IL 127258, ¶ 50 (quoting
In re Shelby R., 2013 IL 114994, ¶ 15). Both the City and the Board assert the
appellate court erred by concluding Potawatomi Casino’s appeal was not moot after
the Board’s June 15, 2023, issuance of an owners’ license to Full House. According
to the City and the Board, once the owners’ license issued, no effectual relief could
be granted to Potawatomi Casino. The determination of whether an appeal is moot
presents a question of law, which this court reviews de novo. Wright Development
Group, LLC v. Walsh, 238 Ill. 2d 620, 632-33 (2010).
¶ 21 The bulk of Potawatomi Casino’s arguments asserting it can be afforded
effectual relief are rooted in its previously discussed and rejected position that the
owners’ license issued to Full House is void. Moreover, Potawatomi Casino does
not identify any statutory authority allowing the Board to revoke an owners’ license
based on a municipality’s noncompliance with section 7(e-5), and we find the Act
does not provide for such revocation. Section 5 of the Act sets forth the duties and
powers of the Board, and none of those provisions give the Board the authority to
revoke an owners’ license based on a municipality’s statutory noncompliance
during the certification process or any action not under the control of the license
holder. See 230 ILCS 10/5(b), (c) (West 2020). Likewise, section 7 of the Act does
not grant the Board the power to revoke an owners’ license on the basis of the
municipality’s statutory noncompliance. See id. § 7(e-20) (only granting the Board
discretion to revoke an owners’ license if the owner fails to begin conducting
gambling operations within 15 months of the Board’s approval of its application).
¶ 22 Potawatomi Casino points out that a party cannot moot an appeal by taking the
very action that a complaint challenges. See Schnepper v. American Information
Technologies, Inc., 136 Ill. App. 3d 678, 680 (1985); Blue Cross Ass’n v. 666 North
Lake Shore Drive Associates, 100 Ill. App. 3d 647, 651 (1981); Gribben v.
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Interstate Motor Freight System Co., 18 Ill. App. 2d 96, 102-03 (1958). However,
the cases cited by Potawatomi Casino do not involve a plaintiff seeking to enjoin a
government agency from taking action regarding a third party. The cases also do
not involve a statute indicating the government agency should act promptly. See
230 ILCS 10/5(b)(1) (West 2020) (requiring the Board to decide promptly and in
reasonable order all license applications); id. § 7(e-10) (providing licenses
authorized under section 7(e-5) shall be issued within 12 months after the date of
the application’s submission and, if one cannot be issued within that period, then
the Board must provide an explanation as to why and when a determination is
expected). In this instance, we find Potawatomi Casino fails to demonstrate said
rule applies because the Board acted in accordance with the statute and there are no
facts set forth that support finding an attempt to moot the appeal.
¶ 23 Here, Full House has received the owners’ license that the legislature allowed
with its June 2019 amendment (id. § 7(e-5)(3)). Potawatomi Casino’s complaint
essentially seeks to stop the licensing process before the Board, which is already
complete, and redo the City’s certification process, which is not possible because
the licensing process is complete and not subject to collateral attack. Given those
facts, this case is distinguishable from Provena Health v. Illinois Health Facilities
Planning Board, 382 Ill. App. 3d 34, 51 (2008), where the appeal was not moot
because a reversal of the Board’s decision to grant a hospital a certificate of need
permit would prevent the hospital from obtaining an operating license.
Accordingly, we find no effectual relief can be granted, and the appellate court
erred by finding the appeal was not moot.
¶ 24 However, our review does not end here. We are still left with the issue of
standing. Given our finding that effectual relief cannot be afforded in this matter,
one could argue the standing issue is moot. While courts generally do not decide
moot issues, an exception to the mootness doctrine permits a court to resolve an
otherwise moot issue if it involves a substantial public interest. McHenry Township,
2022 IL 127258, ¶ 50.
¶ 25 C. Public Interest Exception to the Mootness Doctrine
¶ 26 In its brief, the City notes that, given their lucrative nature, decisions over
casino licenses can lead to retaliatory lawsuits, which seek to interfere with the
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regulatory process and delay or block public benefits. The City points out this is
the third lawsuit stemming from its casino certification process. Besides this case
and the federal case brought by Potawatomi Casino, Waukegan Gaming, LLC, also
filed suit against the City. See Waukegan Gaming, LLC v. City of Waukegan, 2023
IL App (2d) 220426 (affirming dismissal of suit brought by Waukegan Gaming,
LLC). The City argues the appellate court’s standing decision is expansive and
actively encourages litigation by future applicants on the losing side of the casino
selection process.
¶ 27 The criteria for invoking the public interest exception to the mootness doctrine
are as follows: “(1) the public nature of the question, (2) the desirability of an
authoritative determination for the purpose of guiding public officers, and (3) the
likelihood that the question will recur.” McHenry Township, 2022 IL 127258, ¶ 50.
Although courts narrowly construe the public interest exception, it applies where
the court’s action is warranted due to the magnitude or immediacy of the interests
at issue. Id. We find application of the exception is warranted here.
¶ 28 Because the Act was intended to provide economic benefit to the citizens of
Illinois (230 ILCS 10/2 (West 2020)) and Potawatomi Casino seeks to collaterally
attack the Board’s actions under the Act, the issue of Potawatomi Casino’s standing
to bring the collateral challenge is a question of a public nature. Moreover, the
Board received the applications for a license for a casino in Waukegan in October
2019, and the federal action was immediately filed. The state action was filed two
years later. The Board eventually issued the license in June 2023. Both the federal
litigation and state litigation were ongoing in 2024. As such, litigation has been
hanging over the Board during the entire proceedings, and the validity of the license
has been in question. Thus, an authoritative determination for the purpose of
guiding public officers is desirable. Last, the lucrative nature of an owners’ license
oftentimes leads to lawsuits by those who do not receive one. See Keystone
Redevelopment Partners, LLC v. Decker, 631 F.3d 89, 97 (3d Cir. 2011)
(recognizing gaming licenses are lucrative and thus decisions involving their
issuance are likely to result in lawsuits). As noted, this is the third lawsuit against
the City involving its certification process for one casino license. Accordingly, we
address the issue of standing.
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¶ 29 D. Standing
¶ 30 The City and the Board contend Potawatomi Casino lacked standing to bring
its injunctive and declaratory judgment action and thus the circuit court’s dismissal
order should be affirmed. Potawatomi Casino argues the appellate court’s finding
it had standing was correct.
¶ 31 This court has explained the standing doctrine as follows:
“The standing doctrine assures that issues are raised only by those parties
with a real interest in the outcome of the controversy. [Citation.] Standing
requires some injury in fact to a legally cognizable interest. [Citation.] The
injury may be actual or threatened and must be (1) distinct and palpable;
(2) fairly traceable to the defendant’s actions; and (3) substantially likely to be
prevented or redressed by the grant of the requested relief. [Citation.] We
review issues of standing de novo. [Citation.]” (Internal quotation marks
omitted.) Midwest Commercial Funding, LLC v. Kelly, 2023 IL 128260, ¶ 13.
Moreover, when the cause of action seeks declaratory relief, “there must be an
actual controversy between adverse parties, with the party requesting the
declaration possessing some personal claim, status, or right which is capable of
being affected by the grant of such relief.” (Internal quotation marks omitted.)
Illinois Road & Transportation Builders Ass’n v. County of Cook, 2022 IL 127126,
¶ 13.
¶ 32 We begin by examining the relevant facts at the time Potawatomi Casino filed
this action. As alluded to with the mootness issue, obtaining the casino owners’
license under section 7(e-5) involved two separate and distinct proceedings, one
overseen by the City and one overseen by the Board. See 230 ILCS 10/7(e-5) (West
2020). The City’s proceedings are completely governed by section 7(e-5), which
dictates what the City must certify to the Board for each applicant. That section
contains no limitations on the number of applicants a host municipality may certify
to the Board and does not provide for competitive bidding. See id. On the other
hand, the Board’s proceedings are governed by certain regulations and multiple
provisions of the Act and involves competitive bidding (id. § 7.12).
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¶ 33 Two years after the City declined to certify Potawatomi Casino’s proposal and
while the Board’s proceedings were still ongoing, Potawatomi Casino filed suit
against both the City and the Board. Given the City did not certify Potawatomi
Casino’s proposal, Potawatomi Casino did not participate in the Board’s licensing
process. As we previously found, the Board had jurisdiction over the application
process once the City certified the three other applicants to the Board. At that time,
the City’s role under section 7(e-5) ended.
¶ 34 Both the City and the Board contend Potawatomi Casino did not have a legally
cognizable interest at the time it filed suit. However, the appellate court found
Potawatomi Casino possessed a legally cognizable interest, which was the right to
compete in a certification process that is fairly and lawfully conducted. 2023 IL
App (1st) 220883, ¶ 11. In support of that conclusion, the appellate court cited a
competitive bidding case. Id. (citing Keefe-Shea Joint Venture v. City of Evanston,
332 Ill. App. 3d 163, 171-72 (2002)). However, it further noted that, while that right
was often implicated in competitive bidding situations, it was not limited to such
context and cited Illinois Road, 2022 IL 127126, ¶ 18, and Aramark Correctional
Services, LLC v. County of Cook, No. 12 C 6148, 2012 WL 3961341, at *1, *5
(N.D. Ill. Sept. 10, 2012)). 2023 IL App (1st) 220883, ¶ 11.
¶ 35 In Illinois Road, 2022 IL 127126, ¶¶ 1, 18, this court found the plaintiffs, a
coalition of contracting firms in the public transportation construction and design
industry, suffered an injury from the county’s violation of a constitutional
amendment that required the proceeds from certain taxes and fees to be used for
transportation-related purposes. We recognized the diversion of funds negatively
affected the pool of jobs and contracts available to the plaintiffs’ members. Id. ¶ 18.
This court further noted that (1) the plaintiffs had alleged in their complaint that
their members were suffering economic harm due to the county’s ongoing violation
of the amendment and (2) we had long recognized economic injuries are a sufficient
basis to establish standing. Id.
¶ 36 In Aramark Correctional Services, 2012 WL 3961341, at *1, Cook County
elected to issue a request for proposals for a new food services contract rather than
competitive bidding. The plaintiff was one of two bidders that submitted a proposal,
and the county awarded the contract to the other bidder. Id. The plaintiff moved for
a preliminary injunction barring the county from awarding the contract to the other
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bidder, and the county moved to dismiss the plaintiff’s claims for lack of standing
and failure to state a claim. Id. The court recognized “Illinois courts have
consistently allowed disappointed bidders to bring suit against the local government
entity that allegedly deprived them of a fair bidding process.” Id. at *6. It concluded
that, because the plaintiff alleged a violation of its right to a fair bidding process, it
had standing to sue the county for vindication of that right. Id. The court did note
the fact the plaintiff was not entitled to the contract if the court granted relief that
did not affect the plaintiff’s right to participate in a fair bidding process. Id. at *5.
¶ 37 Here, Potawatomi Casino is raising an issue of statutory noncompliance on the
part of the City, which did not conduct any type of bidding process. Unlike the
aforementioned cases cited by the appellate court and the cases cited by Potawatomi
Casino in its brief, the City did not award a contract or prevent the award of a
contract. The City did not have to certify any applicant to the Board and could reject
an applicant for any reason. While section 7(e-5) provides the matters the City must
certify to the Board, the ultimate decision whether to certify an applicant to the
Board rested within the City’s discretion. Thus, we do not find the bidding cases
cited establish that Potawatomi Casino possessed any vested right to a certain
process. As to the right to lawfully conducted certification proceedings, whatever
right Potawatomi Casino may have had in such proceedings no longer existed when
Potawatomi Casino filed its action two years after the certification process ended.
As such, Potawatomi Casino lacked a legal cognizable interest in the casino
licensing process when it filed the suit at issue.
¶ 38 Accordingly, Potawatomi Casino did not have standing to bring its declaratory
and injunctive suit against the City and the Board, and the appellate court’s finding
to the contrary was erroneous.
¶ 39 III. CONCLUSION
¶ 40 For the foregoing reasons, we hold the circuit court’s dismissal of Potawatomi
Casino’s complaint for lack of standing was proper. Therefore, we reverse the
appellate court’s judgment reversing the circuit court’s judgment.
¶ 41 Appellate court judgment reversed.
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¶ 42 Circuit court judgment affirmed.
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