This is to clarify possible confusion regarding the recently reported decision by the 3rd District Illinois Appellate Court which upheld the constitutionality of the Impact Fee legislation. This case is the second attempt by the casinos to have the 3% law ruled unconstitutional. The first case resulted in a victory for us at the Illinois Supreme Court and refusal by the U.S. Supreme Court to hear an appeal of the decision. The recent Illinois Appellate Court opinion is another victory for us in the Illinois State Courts.
This is a good and important decision but this is not the case that is currently under review by the 7th Circuit Federal Appellate Court in Chicago which is key to whether or not we get the 3% Impact Fee monies. The Federal Court case is the one where former Governor Blagojevich is a co-Defendant. We still await that Court's opinion on the argument it heard a year ago.
In another court development, the 3rd District Illinois Appellate Court reversed a Will County trial Court decision and found that interest on the 3% Impact Fee monies while it was being held in a protest fund belongs to the State and not the tracks and us. Monies in that protest fund were ultimately transferred to the Horse Racing Fund and those monies are earning interest for the tracks and us pursuant to Federal Court order. The horsemen of the ITHA are the largest stakeholder of all tracks and horsemen's groups in connection with the impact fee monies and interest thereon. Our attorneys are actively considering options regarding the interest issues at this time.
