If the application is successful, the new property, named American Place, would include a casino, a hotel comprised of 20 villas, a 1,500-seat live entertainment venue and a restaurant.
As Illinois became the 17th state to legalise sports betting in June, the casino would also feature a sportsbook.
In the second phase of development, the operator hopes to include a four-star hotel with 150 rooms, dining rooms and entertainment in a bid to "attract gaming and non-gaming patrons from throughout Chicagoland and beyond."
Daniel Lee, President and CEO of Full House Resorts, said: "We thank Waukegan Mayor Sam Cunningham and the Waukegan City Council for advancing our proposal to the Illinois Gaming Board.
"We look forward to presenting our plans to the Illinois Gaming Board and getting the opportunity to develop a first-class gaming facility that will bring jobs and revenue to the city of Waukegan and the state of Illinois."
Earlier this month, Full House Resorts entered into an online and mobile sports wagering agreement with Wynn Resorts throughout Indiana and Colorado.
The operator saw 3% year-on-year revenue growth for Q2 2019, to $41.2m. Its Q3 results are yet to be released.
