An article appearing in Tuesday's Wall Street Journal states that John Johnston, part of a well-known horse track racing family in Illinois, was allegedly pressed to donate cash to
embattled Illinois Gov. Rod Blagojevich in return for the governor signing into law a horse racing bill that meant millions to the Johnston family's tracks.
According to transcripts and audio copies of federal wire taps released today, Johnston is named in a conversation between the governor and his brother, Rob.
Johnston's lawyer, Dan Reinberg, said his client refused to give the governor any cash in return for signing the bill. He said that Len Monk, who the Johnston family hired to lobby the bill, approached Johnston for a contribution, but that Johnston "did not agree to make a contribution to the governor."
In the transcripts, the governor's brother tells him that Monk "says Johnny Johnston is good for it."
The new Illinois law is based on a rationale that horse tracks have seen dramatic declines in revenue since casinos entered the Illinois market in the 1990s. But casinos have argued that horse racing's decline has more to do with the sport's fading appeal than casino competition. They have challenged the law in court. As a result, money intended to be dispersed among Illinois race tracks is being held in a protest account until the legal dispute is settled.
Johnston owns a controlling stake in both Balmoral and Maywood Park.
To read the full article from The Wall Street Journal,
(with files from The Wall Street Journal)