Illinois Township Supervisor Admits Using Government Funds at Casino, Won’t Resign

A township supervisor in Illinois is refusing to resign from her position despite admitting to using government money at a casino.

Illinois township casino Horseshoe St. Louis
Canteen Township Supervisor Sally Rodriguez has admitted to using government money for her personal use. Despite the admissions, the Illinois township supervisor is refusing to resign. (Image: Casino.org)

During the Canteen Township Board of Trustees’ September 4 meeting, Township Supervisor Sally Rodriguez admitted to using the town’s debit card for her personal use. But Rodriguez, who was appointed to her position in May of 2023 by the trustees, claims the debit withdrawals on the government card were made by mistake.

Trustees say an anonymous source tipped them off that Rodriguez didn’t only poach money from the township via debit card, but also wrote herself checks from the township’s bank account that she cashed. Banking records show six transactions were completed at the Horseshoe Casino St. Louis that’s operated by Caesars Entertainment.

Rodriguez confessed to withdrawing $6,000 in cash at the casino. She also cashed two checks made out to herself from the township checking account, and a third directly made out to cash.

Canteen Township is located in St. Clair County in southwestern Illinois along the Mississippi River. The township includes Caseyville, Fairmont City, Fairview Heights, Madison, and Washington Park. Horseshoe Casino St. Louis is just across the river from the township.

The Belleville News-Democrat first broke the news of Rodriguez’s actions.

Resignation Refusal

During the September meeting, Canteen Township Trustee Rickie Thomas, in a motion seconded by Trustee Angie Rodgers, called on Rodriguez to resign immediately. She refused.

Rodriguez contends that the financial transactions to her benefit were made in error. Thomas said one errant transaction might be understandable, but not five.

I asked her how do you make the same mistake five times and how does your personal card have the same PIN as the township’s?” Thomas asked, as reported by the Belleville News-Democrat.

The township’s attorney told the media outlet that the trustees cannot forcibly remove an elected official, even though Rodriguez was appointed — not elected — to the role following the death of Supervisor Norm Miller in April 2023.

It’s unclear if Rodriguez has agreed to repay the township the money she took from its banking accounts. It’s also unknown if Rodriguez gambled with the ill-gotten funds.

The board was tipped off to her actions after two trustees and the township clerk received packages in the mail detailing her alleged theft.

According to the US Census Bureau, the median household income in Canteen Township is $41,530. The employment rate is below 50% and almost four in 10 people live in poverty.

Illinois Politics 

Considered a Democratic stronghold and one of the party’s “big three” states along with California and New York, politics in Illinois has long been doused in scandal. Dating back to before the Chicago Outfit ran the Windy City, political corruption in Illinois is nearly as famous as Chicago’s deep-dish pizza.

Among the state’s most notorious political scandals was Gov. Rod Blagojevich fielding bribes in exchange for the state’s Senate seat left vacant by Barack Obama after he won the presidency in 2008.

More recently, and certainly less consequential, is Dolton Mayor Tiffany Henyard, the self-described “supermayor” who’s accused of living lavishly off her taxpayers. Last year, Henyard allegedly ran up a tab of more than $10K for a Las Vegas visit that taxpayers covered.

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Bally’s, MGM Among Casino Stocks Hedge Funds Pared in Q2

Bally’s (NYSE: BALY) and MGM Resorts International (NYSE: MGM) are among the gaming equities in which some well-known hedge funds reduced their positions in the second quarter.

hedge funds casino stocks
The famous charging bull on Wall Street. Hedge funds altered positions in casino stocks in the second quarter. (Image: Reuters)

Bally’s, the Rhode Island-based regional casino operator that’s long been a favorite of hedge funds, slumped 22.2% in the June quarter, the period in which John Paulson’s eponymous hedge fund exited its position in the stock.

Paulson & Co. originally bought Bally’s shares in the second quarter of 2021, but a new Form 13F filing with the Securities and Exchange Commission (SEC) indicates the money manager liquidated the remains of that stake this year.

Major institutional investors, including hedge funds, are required to file 13F’s within 45 days of the end of the prior quarter. They aren’t required to disclose the dates on which they bought or sold securities, so there’s no way of knowing exactly when Paulson & Co. departed the Bally’s position.

Hedge Funds Also Tinkered with MGM, Wynn Positions

Corvex Management, the hedge fund run by MGM board member Keith Meister, pared its exposure to the Bellagio operator in the June quarter.

Meister’s firm also eliminated its stake in UFC parent Endeavor Group Holdings, Inc. (NYSE: EDR). Endeavor has direct gaming exposure of its own as it controls the OpenBet sports wagering technology platform. Shares of MGM declined modestly in the second quarter while Endeavor Group stock posted a small gain during that period.

Wynn Resorts (NASDAQ: WYNN) was also among the casino operator equities that saw a professional money manager sell some shares. 3G Capital Partners, the investment firm co-founded by Brazilian billionaire Alexandre Behring, reduced its Wynn position to 105K shares from 117,500 at some during the April through June period.

Wynn was one of several stocks in which 3G trimmed positions during the previous quarter. It’s the only gaming equity currently owned by the money manager.

Whale Rock Initiates DraftKings Stake

As the stock surged as the sportsbook operator was notching its profitable quarter as a publicly traded company, DraftKings (NASDAQ: DKNG) caught the attention of at least one hedge fund in the April through period.

In a 13F published on Monday, Whale Rock Capital Management revealed a new stake in the gaming company. That hedge fund bought more than 8.11 million shares of the gaming company in a position valued at $215.68 million in the second quarter.

DraftKings is the only gaming equity held by Whale Rock, but the hedge fund owns a slew of technology equities, some of which are emerging growth names, as is DraftKings.

Whale Rock, which has been in business since 2006, is based in Boston. That’s DraftKings’ home city, too.

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