Chicago Takes Key Step In Downtown Casino Project, But Don’t Hold Your Breath
Mayor Lori Lightfoot is interested in hearing from real estate developers and game providers about their methods.
Yet, there is a lot to discover.
AccordingA city game could be a very lucrative business venture for the city, according to Lightfoot.
& ldquo, After securing favorable legislation that had eluded us for decades, Chicago can now pursue a once-in-a-generation opportunity to open opulent casinos, generating hundreds of millions in new gaming revenues to support the city’s pension obligations, drive up the amount of infrastructure funding in Illinois, and create thousands of new and desperately needed jobs for local residents.
As we continue to lay the groundwork for a successful treatment from the effects of the COVID – 19 pandemic, now is the ideal time to start having these conversations. & rdquo,
The location of the game should be the first and most important question to ask.
The official RFI, which you can read in full here, also solicits the community for comment on the following:
- conditions for running a makeshift game.
- suggestions for the scope and size of a gambling complex.
- services that may help to increase sales.
- How to deal with COVID-19 as a component of creation.
- best methods for fostering group involvement.
By October 21st, people comments may be emailed to Chicago.
Lightfoot suggested five casino locations in January. They were:
- Reese Michael
- State and Pershing
- Kostner and Roosevelt
- US Steel
The south or north sides of the city are where all five places are located. The listing, according to Lightfoot, is never final, but Illinois Governor J.. Boron. Pritzker encourages economic growth in those areas.
Industry experts, however, believe these will be the least profitable areas. They’ve advocated for a location close to or in the heart of downtown.
It is anticipated that it will be closer to upscale resorts and easier for visitors to reach. A state-mandated consultant predicted last summer that a centrally located casino could make$ 1.2 billion annually, or nearly triple Illinois & lsquo, the current most profitable casino.
Because it will directly affect income, anticipate location to be a key component of this process. There might be opposing goals at work below. It’s noteworthy, though, that Lightfoot makes clear in the statement that Chicago & rsquo has pension obligations.
Lightfoot has aided in the viability of the Chicago game job.
The Illinois game act initially set a 72 % effective tax rate on chivalrous casinos.
According to a feasibility study by Union Gaming Analytics, it would be impossible to build an effective game with that problem.
As a result, Lightfoot’s team pushed for a legislative fix in Springfield. Here are the new tax rates on slot revenue:
- Up to and including$ 25 million, with 10.5 % going to Chicago and 12 % to the state.
- 16 % to IL and 14 % to Chicago:$ 25, 000, 001 to$ 50,000,000.
- 20.1 % to Al and$ 50, 000, 001 to$ 75, 2000, and 000 17.4 % to Chicago
- 21.4 % to IL and 18.6 % to Chicago in the range of$ 75, 000, 001 to$ 100,000
- 22.7 % to IL and 19.8 % to Chicago in the range of$ 100, 000, 001 to$ 150,000
- 24.1 % to IL and 20.9 % to Chicago:$ 150,000, 001 to$ 225, 000.
- 26.8 % to Illinois and 23.2 % to Chicago:$ 225, 000, 001 to$ 1 billion.
- Over$ 1 billion, with Illinois receiving 40 % and Chicago receiving 34.7 %.
The grade limits changed significantly, but the tax rates themselves did not.
In the past, there was a garish 74.7 % tax on slot machine revenue over$ 200 million. That threshold is currently$ 1 billion.
listing of casinos in Illinois as of right now
The closest casino to downtown Chicago at the moment is Rivers Casino in Des Plaines. Here are the additional nine Illinois casinos:
- Alton Argosy Casino
- DraftKings at the Queen & nbsp Casino,
- Elgin Grand Victoria Casino
- Joliet Harrah & rsquo, s
- Metropolis Harrah & rsquo, s
- Aurora Hollywood Casino
- Joliet at the Hollywood Casino
- Jumer & rsquo’s Casino and Hotel
- Casino Par-A-Dice
The 2019 act approved six brand-new games, including one in Chicago.
A Chicago game is probably a long way off, for what it’s worth. The RFI is referred to in the press release as & ldquo, or a first step. & rdquo,
At the very least, it’s a phase yet.