Two decades ago, as Rosemont and its controversial Mayor Donald E. Stephens were trying to secure a coveted casino license for the tiny but politically powerful northwest suburb, reputed mob ties proved their undoing, and the project landed instead in neighboring Des Plaines as Rivers Casino.
Among the concerns of state regulators hesitant about letting Rosemont host a lucrative gambling complex: the use of D&P Construction Co. Inc., dumpsters on the site that Stephens was prepping for a casino that never materialized for his town.
That waste hauling company was, according to the FBI, controlled at the time by reputed leaders of the Chicago mob, brothers John and Peter DiFronzo, both of whom died in the last few years.
Despite that ugly history, the Chicago Sun-Times discovered that D&P is being used on the River West site where Bally’s is developing a permanent casino — and the Illinois Gaming Board has now halted the project following questions from the newspaper.
The state government agency, which ultimately answers to Gov. JB Pritzker, released a written statement Thursday saying:
“The Illinois Gaming Board (IGB) issued an order to cease construction work on the Bally’s Chicago permanent casino in connection with a pending IGB investigation into the use of undisclosed and unapproved vendors at the construction site.
“IGB regulations require full disclosure and IGB prior approval for Bally’s Chicago Casino’s construction plans. The disclosure and prior approval requirements extend to all contractors and vendors (including subcontractors).
“IGB staff learned earlier this week that D&P is providing or provided waste removal services at the permanent casino construction site. However, D&P was not disclosed to the IGB and the IGB did not approve D&P.
“This raises several serious concerns as the IGB does not know who is associated with D&P and if any of those associations could potentially violate the Act or rules. This matter is under investigation and the IGB has no further comment at this time.”
Bally’s, which has been operating a temporary casino at the Medinah Temple in River North since Sept. 9, 2023, said in a statement Thursday:
“Today we were informed by IGB that the contractors working on the Bally’s Chicago site were utilizing an unapproved vendor and were issued a stop work notice.
“We appreciate the diligence and action of IGB. This is the process at work. We look forward to working with the IGB to eliminate the possibility of it happening again.
“We brought together the Chicago Community Builders Collective to give smaller city contractors a chance to participate in this amazing project. We will work with the CCBC to better achieve our shared objectives.”
Organized crime in Chicago was largely built on vice, including gambling, whether through illegal bookmaking, fixed horse races or casinos in Las Vegas where the Chicago mob once held huge sway.
Fears about the mob finding its way into casinos in Illinois — including through mob-backed investors or companies getting a piece of the profits — long underscored the mission of the gaming board, which has the ability to dig into anything that potentially compromises the integrity of local gambling, and to issue fines or even yank away gaming licenses.
Under state administrative rules, gaming companies can lose their licenses for “associating with, either socially or in business affairs, or employing persons of notorious or unsavory reputation or who have extensive police records, or who have failed to cooperate with any officially constituted investigatory or administrative body and would adversely affect public confidence and trust in gaming.”
A decade ago, Rivers agreed to pay a $1.65 million fine after a gaming board investigation and a story in the Sun-Times showed that the casino had hired a company run by a reputed mob associate for janitorial and security work.
Elgin’s Grand Victoria Casino, accused of hiring a contractor with reputed mob ties, was once hit with a $3.2 million fine.
It’s too early to say whether Bally’s could face a penalty over D&P, whose current relationship to the DiFronzo family is unclear. Peter DiFronzo’s widow was long on paperwork as a top officer, but is no longer.
D&P officials couldn’t be reached for comment.
Bally’s spokeswoman Lauren Westerfield said a construction subcontractor enlisted D&P to handle waste management near Chicago Avenue and Halsted Street, where the permanent casino is being built on the grounds of the former Chicago Tribune printing plant along the Chicago River.
The company received the gaming board’s work stoppage order Thursday and is hammering out a new plan to define how subcontractors are vetted and approved, Westerfield said, adding that once the plan is approved by the IGB, work can resume, but it’s unclear how long that could take.
“We are redefining our process alongside the IGB to make sure everything that needs to be vetted in the future is handled correctly and that this doesn’t happen again,” Westerfield said. “We are working as fast as possible and have a good working relationship with the IGB.”
The Bally’s temporary casino at 600 N. Wabash Ave. remains open.
The work stoppage at the permanent site is the latest hurdle in Chicago’s winding path to a long-sought casino, coveted by generations of mayors as a savior for the depleted police and firefighter pension funds.
A 4,000-position Chicago megacasino was the crown jewel of 2019 state legislation championed by Pritzker that added six new casinos statewide and expanded other gambling options to help fund a $45 billion infrastructure program.
Former Mayor Lori Lightfoot gave Bally’s the nod for the coveted gaming license in 2022 over more experienced gambling companies like Hard Rock and Rivers.
Revenue at the temporary casino has fallen well short of city projections so far. Demolition and construction of the permanent site began in earnest last summer after Bally’s secured financing to close an $800 million funding gap and remapped the site plan due to unforeseen issues with city water pipes.
Under state law, Bally’s has to open the permanent casino by September 2026 — a tight timeline to complete the $1.7 billion development even before work was halted.
More than 20 years ago, D&P was the focus of a gaming board disciplinary case that prompted regulators to block the Emerald Casino from opening in Rosemont.
In its 2001 complaint against Emerald developers, the gaming board said: “The owner of D&P, Josephine DiFronzo, is married to Peter DiFronzo and is the sister-in-law of John DiFronzo, individuals who have been identified as known members of organized crime. Emerald’s failure to exercise appropriate supervision resulted in work being performed at the site by D&P.”
In 2005, a gaming board hearing officer — citing a memo from the FBI — wrote D&P was “controlled” by the DiFronzo brothers. The FBI memo also alleged that D&P “obtained contracts through illegal payoffs or intimidation.”
The Emerald license was revoked and eventually handed to Rivers, essentially across the street from the nixed Emerald site. Rivers has long been the most lucrative casino in Illinois, raking in more than $2.3 billion over the last five years.
Chicago wasn’t in the conversation for that casino license many years ago amid concerns about possible organized crime influence.