Three Operators Submit Proposal To Develop $1 Billion Chicago Casino
Chicago fought long and hard to get permission to develop a multi-billion dollar casino. When it finally got the necessary approval to develop a casino resort, the interest from major casino operators waned. One of the main reasons for this was due to the high tax rate which stood at 70 percent and some of the preferences of Mayor Lori Lightfoot.
The Mayor was disappointed initially to see top operators like Las Vegas Sands Corp. and MGM Resorts not show interest in develop a casino resort in America’s third biggest city. She got legislators to drop the high tax rate from 70 percent to 40 percent and that has worked in generated interesting from casino operators.
Three Operators Send In Proposals
So far proposals to develop a Chicago casino have come in from Rush Street Gaming, Hard Rock International and Bally’s Corp. who are expected to invest a minimum of $1 billion to develop a mega-casino resort. The operator who ends up winning the Chicago casino proposal is likely to be announced by the end of Feb 2022.
The winning bidder will develop a casino, hotel and an entertainment complex that provides non-gaming entertainment. They will also have the rights to operate slot machines at O’Hare and Midway airports.
The proposals contain details about which firms they will engage as contractors and for the construction of the Chicago casino resort. It also includes information about minority participation and a proposal as to which location they want to develop this billion dollar casino resort. The proposals will be reviewed by the city committee who will recommend the winning bidder. The winner bidder will be subject to final approval from the council and mayor.
Chicago Could Take In $200M
Chicago is very keen to get this casino proposal moving forward and has already put in place provision for the winning bidder to operate a temporary casino. Apart from providing thousands of employment opportunities during the construction phase, the casino resort will employ hundreds of full-time employees when it is up and running.
The billion dollar casino resort is expected to boost the overall economy as it will engage dozens of local contractors during the construction and operating phase. It will also provide the tourism industry with a big boost. Market analysts predict that the casino resort will generate close to $160 to $200 million in gaming taxes once it is fully operational.
MGM Resorts who initially expressed interest in Chicago decided against sending in a proposal as they felt that the regulations and tax structure was not favourable.