The long-awaited bidding process for a Chicago casino began earlier this year and reached the midpoint this week when three companies bid for casinos in five locations around the city. Bally’s Corp., Hard Rock International and Rush Street Gaming submitted bids. Bally’s and Rush Street entered to separate bids. While all of the bids are quality and high-class proposals, Mayor Lori Lightfoot’s desire to get the larger gaming companies like Caesars Entertainment, MGM Resorts or Las Vegas Sands involved failed, even though she was able to negotiate a lower tax rate and extended the deadline for bids.
Details of the bids include:
- Bally’s Corporation submitted proposals for two sites and would self-manage the facility. One site would be Chicago Tribune Publishing Center, at the corner of Chicago Avenue and Halsted Street. The second site would be the McCormick Place Truck Marshaling Yard near 31st Street and DuSable Lake Shore Drive.
- HR Chicago added a proposal for a undisclosed single site that would be managed by Hard Rock International;
- Rivers Chicago at the McCormick Place Lakeside Center is for a single site managed by Rush Street Gaming adjacent to ; and
- Rivers 78 Gaming submitted a proposal for a single site, Chicago 78, a 60+ acre site south of the Loop, that would also be managed by Rush Street Gaming.
Despite the lack of bids from the major gaming companies, Lightfoot was excited to move the process forward.
“We are thrilled to have received five high-caliber proposals from Bally’s Corp.; HR Chicago LLC; Rivers Chicago at McCormick LLC; and Rivers 78 Gaming LLC,” she said in a statement. “The submission of bid responses represents a major step toward the thoughtful development of a casino-resort that uplifts our businesses, employs and empowers our residents and encourages tourism. We look forward to the next phase of discussions to bring this world-class entertainment experience to our city.”
The process began in 2019, but an initial tax rate of 70 percent was not well received by the potential bidders so Lightfoot went back to the legislature. The current tax rate is expected to be around 40 percent.
Some believe Chicago-based Rush Street Gaming has the inside track, particularly because it’s majority owned by billionaire Neil Bluhm. Lightfoot denies that she’s favoring any bid, but Bluhm’s daughters have contributed more than $200,000 to Lightfoot’s campaigns. In addition, Rush Street, along with Churchill Downs, operates the state’s most successful casino, Rivers, in Des Plaines.
Names of the investors in the casinos have not been released, but Bally’s says 25 percent of its investors include “philanthropists, business owners, sports stars, celebrities, and everyday Chicagoans.”
“This property will be built, owned, and operated by Chicagoans, with a focus on minority and women investors, contractors, suppliers, consultants, and employees,” Bally’s chairman Soo Kim said. “It will generate tax revenue, create good-paying jobs, and attract international, national, and local visitors for generations to come.”
The city will now set up a casino review committee that will evaluate the bids. No timeline was given for a final decision, but Lightfoot will have the final say about which proposal will be presented to city council for the ultimate nod.
