‘High Tax Rate.’ ‘Complicated.’ ‘No Interest.’ Chicago Casino Project Extends RFP Deadline, But Is More Time The Answer?
Editor & rsquo, s note: The author’s opinions are expressed in the following.
Chicago has moved up the date for game applications from Aug. 23 to Oct. 29.
In doing so, Chicago Mayor Lori Lightfoot gives prospective bidders more time to assess the project. Lightfoot said in a statement:
The city will be able to gather as many strong, influential, and revolutionary proposals as possible by extending the deadline for serious bidders. I’m eager to see these bids come in and to work closely with whoever is ultimately selected to create Chicago & rsquo, the first-ever casino. & rdquo,
There is only one known bid for the Chicago game project as of right now. Rush Street Gaming, That & rsquo, and S & NBSP. But, giving Rush Street the project without any other suitors might lead to political issues for Lightfoot.
Rush Street Gaming was co-founded by Neil Bluhm, and his daughter Leslie has given more than$ 100,000 to Lightfoot & rsquo’s political campaigns in the past.
Alderman Brian Hopkins, 2nd ward, told Crain’s Chicago Business:
& ldquo, I believe there would be a lot of opposition if the mayor agreed to an agreement that would essentially be the sole source contract for something so important. & rdquo,
The project will be approved by gaming executives Caesars Entertainment, MGM International, and Wynn Resorts & nbsp.
Tom Reeg, Director of Caesars, delivered the most recent blow during an earnings call with owners:
I & rsquo and & ldquo have no desire to visit Chicago. & rdquo,
Lightfoot said in June that there would be “no hometown favorites” for the Chicago casino license.
We & rsquo will raise that cliché with another: Sometimes, beggars can’t be picky.
Why isn’t the Chicago game registration more well-liked?
To begin with, the effective tax rate is high. It is currently 40 %.
Still, 40% is a gaudy number. MGM CEO Bill Hornbucklereferenced the tax rate — among other factors — when explaining why his company isn’t interested.
Chicago is just complicated, & ldquo. The history of Chicago, the taxes, and the idea of an integrated resort on a grand scale don’t actually mesh. & rdquo,
In addition to the high tax rate, the resort will likely cost more than $1 billion to develop.
When you hear the words “& ldquo ,”” complicated & rndquo, or” andlgquo” the history of Chicago, it denotes an inescapable( unfavorable ) quality of sorts working against the city.
Chicago is infamous for its messy politics, and perhaps “messy” is the best word to describe taking on this project. It’s been more than two years since Illinois Gov. JB Pritzker signed the gaming expansion bill into law, including the Chicago casino.
And, after two years, what does the city have to show for its efforts? The best thing you can cite is that the tax rate isn’t as bad as it used to be. The Chicago casino location is entirely up in the heat, the operator, and a plethora of other important elements.
By the way, once Chicago figures everything out, the Illinois Gaming Board (IGB) doesn’t exactly have a reputation of approving casino applicants in a timely manner. Dealing with the IGB also can’t be something operators are jumping at the chance to do.
Also though Chicago isn’t close to being ready to submit an application, Lightfoot has previously criticized the IGB for its cumbersome process.
What will happen to the Chicago game then?
It goes without saying that gaming operators are uninterested in extending the request for proposal( RFP ) deadline. However, Lightfoot & rsquo’s office appears to think there will be more bidders in the additional time.
Rush Street is currently the obvious favorite to obtain the license. It might not face any rivals.
However, it might be possible. According to a source in the Chicago Business & nbsp’s Crain & rsquo, there will be at least one more proposal.
Interestingly, Hard Rock International hasn’t said anything about it. One of the four gaming companies to respond to Chicago & rsquo’s Request For Information was Hard Rock. Rush Street, MGM, and Wynn were among the people; the latter two have now withdrew from the discussion.
Thus, it’s conceivable that Hard Rock wants more time to evaluate the project. It is also developing a casino in Rockford, which will likely be the next casino to open in Illinois.
Chicago residents may obtain their game in some way. It won’t happen this year, the year after that, or any other season. But it will take place.
Nevertheless, getting there will be a difficult task. Some people now believe it to be.