Top casino operators were initially very interested in developing a casino in America’s third biggest city.
However, they changed their minds when they found out that Chicago planned to impose a 70 percent tax rate on their operators and wasn’t very keen on giving them prime real estate in the city to develop the casino.
Mayor Lori Lightfoot expressed her disappointment earlier this year when she found top operators like Las Vegas Sands Corp. and MGM Resorts not keen on sending in a proposal to develop a casino resort in Chicago. She got the city to change its stance on the 70 percent tax rate and reduce it to 40 percent. The move worked as it did get the attention of multiple casino operators but wasn’t good enough to get any Las Vegas operators from submitting their proposal.
ABC 7 Chicago
Three operators that have already sent in their proposals to develop a casino in Chicago include Rush Street Gaming (2 proposals), Bally’s Corp (2 proposals) and Hard Rock International The proposal is for a casino, hotel and an entertainment complex that will restaurants, bars, retail outlets and other non-gaming activities. The winning developer will end up investing over $1 billion into the proposed casino resort in Chicago, Illinois.
The location for this $1 billion casino resort is not yet finalized and each developer has submitted their location preference.
Rush Street wants either a former railroad yard in downtown Chicago or the convention center at McCormick Place. Bally’s has opted for an old Tribune Co. printing plant or McCormick Place.
The city committee will review each of the proposals which include minority hiring, which contractors will be engaged and which construction company will be responsible for developing the casino resort. They are expected to announce the winning bidder in Feb 2022. The winning bidder will need the approval of the Mayor and city council.
Las Vegas Sands Corp., MGM Resorts, and Wynn Resorts decided not to submit a proposal. MGM Resorts clarified that the current setup of regulations and taxes did not make Chicago an attractive proposition for them.
Casino Will Raise $160M In Taxes
The winning bidder will be allowed to operate a temporary casino while construction of the casino takes place. They also have the rights to operate slot machines at Midway and O’Hare airports.
This billion dollar casino resort will create thousands of jobs for local residents and generate over $160 million in taxes for the city.