Casinos Sue Blago

By Marcus Gilmer in News on Jun 15, 2009 8:20PM

We hope former governor Rod Blagojevich had a good time this weekend appearing at the Second City show that mocks him because he's facing even more legal trouble. Four state casinos have banded together to file a $267 million racketeering lawsuit against Blago for a 2006 law that forced the state's top four casinos to direct three percent of the earnings to the horse-track industry. The Wall Street Journal has the details.

In their complaint, naming Mr. Blagojevich, his campaign fund, Friends of Blagojevich, and Mr. Johnston, the casinos allege "Blagojevich had sold, and Johnston purchased, enactment of this law." A spokeswoman for Harrah's said the suit was filed Friday. A copy of that suit was provided by the plaintiffs.

The law was enacted in 2006 and mandated that the casino funds be transferred to the horse tracks for two years. The complaint says that after the 2006 passage, "Blagojevich and Johnston and possibly others in the horse racing industry, agreed that Johnston or his affiliates would pay Blagojevich or Friends of Blagojevich money in exchange for ensuring the enactment" of the law. The complaint says that a month after Mr. Blagojevich signed the 2006 law, Mr. Johnston contributed $125,000 to Friends of Blagojevich though various affiliates. "To conceal their unlawful scheme, Johnston arranged for this money to paid through several entities under his control," the suit alleges.

An extension of the law was passed and signed by Blago last December.