Chicago will hopefully select the preferred developer of the city’s planned casino by the end of the year, Mayor Lori Lightfoot said this week.
A request for proposals is set to be launched in early April and the Illinois Gaming Board is expected choose the winning bidder for the city’s sole casino license over the following months. The regulator will consider input from local officials before announcing its final decision.
Under provisions in Illinois’ gambling law that were approved by Gov. J. B. Pritzker in the summer of 2019, up to six new casinos can be built in the state in the coming years. Chicago, one of the nation’s largest cities, was selected as one of the preferred hosts of a new gambling establishment.
The process of bringing casino gambling to the city faced a major delay after state officials adopted measures making the project quite unattractive for potential operators. The coronavirus outbreak in the spring of 2020 further hampered the scheme’s progress.
Last year, state lawmakers tweaked some the requirements interested operators would have had to agree to in order to be able to participate in the race for the gaming license. One of the most important changes made by officials was to reduce the original tax rate from more than 70% to 40%.
Another license term that was also revised included the license fee, which the preferred operator will now be able to pay over six years instead of two.
The company that will be selected to build and manage Chicago’s only casino will be able to operate up to 4,000 gaming positions and place some of these at Midway International Airport and O’Hare International Airport, one of America’s busiest airports.
Mayor Lightfoot Hopes for Expedited Licensing Process
The city is set to release the timeline for the upcoming request for proposals in the coming few weeks. Mayor Lightfoot said that they will work with state gambling regulators on an expedited approval and licensing process that could pave the way for Chicago’s casino to open doors by 2025.
Since she stepped in as the city’s top official in 2019, Mayor Lightfoot envisioned a casino as a new source for much-needed revenue that will help officials chip away at least some of the constantly rising public services costs and cover some of Chicago’s unfunded pension liability.
A location for the future gambling venue is yet to be selected. Mayor Lightfoot said this week that they are “going to be flexible” and will let interested operators come to her with their own preferred locations.
According to the mayor, a casino could act as the anchor for a larger complex that will also feature a casino, dining and entertainment options, and more. A resort destination of this kind is hoped to attract both locals and tourists.
Mayor Lightfoot said they envision a Vegas-style complex as in her view, “Las Vegas is the gold standard for casino gaming.”
And the city’s exclusive casino license indeed saw interest from some Las Vegas operators which responded to a request for information launched by officials last year. Wynn Resorts and MGM Resorts International were two of these.
A spokesperson for Wynn said that “when a large city of significance decides to consider a gaming resort, we are interested” and that “Chicago fits that profile.”
An MGM spokesman said that they did respond to the request for information but that does not necessarily mean they will apply for the license when the time comes.
Hard Rock International and Rush Street Gaming were also among the companies that responded to the city’s request. Hard Rock is currently building a gambling venue in Rockford in the Greater Chicago area.
Source: “Chicago Mayor Says Casino Bidder Could Be Picked This Year”, Bloomberg, March 10, 2021
