Chicago Takes Key Step In Downtown Casino Project, But Don’t Hold Your Breath

On August 27, the city of Chicago sent out a request for information( RFI ) to look for original concepts for its coveted downtown casino project.

Mayor Lori Lightfoot is keen on understanding the methods of real estate developers and game providers.

Still, there is much to uncover.

Lightfoot suggests that a city game could potentially be a highly profitable business venture for the city.

“After successfully obtaining beneficial legislation that has been out of reach for many years, Chicago now has the unique chance to establish luxurious casinos. This move could generate hundreds of millions in fresh gaming revenues. These funds can then be utilized to support the city’s pension responsibilities, increase infrastructure funding in Illinois, and create thousands of new, much-needed jobs for local residents.”

Now is the perfect time to start discussions as we persist in establishing the foundation for effective treatment against the impacts of the COVID-19 pandemic.

The first and most crucial question to ask should be the location of the game.

The official RFI, available to read in its entirety here, also invites the community to comment on the following:

• Requirements for conducting an impromptu game.
• Proposals for the scale and capacity of a gambling complex.
• Services that could potentially boost sales.
• How to handle COVID-19 as a part of creation.
• Top strategies for promoting group participation.

People’s comments may be emailed to Chicago by October 21st.

location-related issues

In January, Lightfoot proposed five potential locations for a casino. These included:

• Harborside
• Reese Michael
• State and Pershing
• Kostner and Roosevelt
• US Steel

All five locations are situated either in the southern or northern parts of the city. According to Lightfoot, the list is not definitive. However, Illinois Governor J. Boron. Pritzker promotes economic development in these areas.

However, industry experts believe that these areas will generate the least profit. They have recommended a location in or near the downtown core.

The expectation is that the location will be nearer to high-end resorts and more accessible for tourists. Last summer, a state-appointed advisor forecasted that a centrally situated casino could generate $1.2 billion per year. This is almost three times the revenue of the currently most successful casino in Illinois.

Anticipate that location will be a crucial element in this process as it will directly impact income. However, there may be conflicting objectives underlying this. Notably, Lightfoot’s statement confirms that Chicago has pension obligations.

Lightfoot has aided in the viability of the Chicago game job.

Initially, the Illinois game act established an effective tax rate of 72% on chivalrous casinos.

Union Gaming Analytics’ feasibility study suggests that it would be unfeasible to create an effective game with that issue.

Consequently, Lightfoot’s team advocated for a legislative solution in Springfield. The new tax rates on slot revenue are as follows:

• Including up to $25 million, 10.5% will go to Chicago and 12% will go to the state.
• Rewrite this as: 16% is allocated to IL and 14% to Chicago: amounts ranging from $25,000,001 to $50,000,000.
• 20.1% is allocated to Al, between $50,000,001 and $75,200,000 is allocated, and 17.4% is allocated to Chicago.
• 21.4% of the amount between $75,000,001 and $100,000 goes to IL and 18.6% of this amount goes to Chicago.
• Allocate 22.7% to Illinois and 19.8% to Chicago from a range of $100,000,001 to $150,000.
• 24.1% is allocated to IL and 20.9% to Chicago from the amount ranging from $150,000,001 to $225,000,000.
• 26.8% of amounts ranging from $225,000,001 to $1 billion go to Illinois, while 23.2% go to Chicago.
• More than $1 billion is being distributed, with Illinois receiving 40% and Chicago receiving 34.7%.

While the grade limits underwent significant changes, the tax rates remained the same.

Previously, slot machine revenue over $200 million was subjected to a hefty 74.7% tax. The current threshold for this tax is now $1 billion.

listing of casinos in Illinois as of right now

Currently, Rivers Casino in Des Plaines is the nearest casino to downtown Chicago. The following are the other nine casinos in Illinois:

• Alton Argosy Casino
• DraftKings at the Queen Casino,
• Elgin Grand Victoria Casino
• Harrah’s Joliet
• Harrah’s Metropolis
• Aurora Hollywood Casino
• At the Hollywood Casino in Joliet.
• Jumer’s Casino and Hotel
• Casino Par-A-Dice

The 2019 act sanctioned six completely new games, one of which is in Chicago.

It’s likely that a game in Chicago is far off, just for your information. The press release refers to the RFI as “& ldquo,” or an initial step, “& rdquo.”

At the very least, it’s still a phase.