On August 5, the office of Chicago Mayor Lori Lightfoot announced that would-be Chicago casino operators have two more months to respond to the city’s request for proposal (RFP) to helm the project. The statement indicated that the extension was granted “after several potential bidders sought additional time to evaluate the opportunity.”
“This extension gives potential bidders more time to fully assess the Chicago casino opportunity; conduct additional due diligence; assemble more competitive bid packages; and explore financing opportunities,” the statement continued.”
The Chicago Sun-Times pointed out that operators have had more than two years to consider the prospect of a “potential big-city cash cow,” authorized as part of a statewide gaming expansion signed into law in 2019 by Governor J.B. Pritzker.
Multiple reports have cited that the major gaming companies expected to bid now have little or no interest in a Chicago casino because of a host of reasons such a high tax rate, difficult potential locations and Illinois’ bad reputation of sticking to their word when it comes to a stable regulatory system, and at least four new casinos already approved in the suburbs of Chicago.
After lowering the effective tax rate from an “onerous” 72 percent to 40 percent, Lightfoot issued the RFP in April.
The delay—which gives operators until October 1 to respond—could simply be a lack. MGM Resorts International, Wynn Resorts and Caesars Entertainment have already passed on the project.
Lightfoot continues to put a good face on it, calling the casino a “once-in-a-lifetime opportunity.”
“This historic casino project stands to expand the economic vibrancy and strength of our city by bringing sustainable, good-paying jobs to residents from underrepresented backgrounds and creating a world-class casino-resort that attracts visitors from all over,” she said. “Extending the deadline for interested bidders will allow the city to collect as many robust, impactful and transformative proposals as possible. I look forward to seeing these bids roll in and working very closely with whichever team is ultimately chosen to develop Chicago’s first-ever casino.”
The statement called the Chicago casino project “one of the most attractive casino-resort development opportunities in the country … The potential gaming operator will have the opportunity to incorporate its property into the city’s vibrant cultural scene, robust public transit infrastructure, and highly diversified economy.”
