Chicago leadership expressed disappointment Thursday that MGM Resorts International may not bid on the city’s integrated resort opportunity but said “other well-respected casino operators” may have a different opinion.
During a quarterly earnings conference call Wednesday, MGM Resorts CEO Bill Hornbuckle all but took the company out of the bidding. In response to an analyst question about new U.S. casino opportunities, Hornbuckle said of Chicago, “we’re just not keen or focused on it at this time.” He was also critical that the city’s process had a “complicated tax structure.”
Asha Binbek, deputy press secretary to Chicago Mayor Lori Lightfoot, called MGM Resorts “a respected” company.
“Chicago would have been delighted to receive an MGM casino proposal,” Binbek said in a statement. “We understand each casino operator will need to determine which opportunities are best suited for their organization and that MGM has prioritized its focus for several years on opportunities in Japan and its mobile wagering businesses.”
Last year, MGM Resorts provided input when the city sought information on the process, which led analysts to believe the Las Vegas-based company would ultimately answer the city’s request for proposal.
“We believe other well-respected casino operators have a different view of this once-in-a-lifetime opportunity in Chicago, and we expect to receive outstanding proposals for the Chicago casino,” Binbek said.
Chicago, the nation’s third-largest metropolitan area, released its RFPs last week. Interested parties have until Aug. 23 to submit their ideas for a resort that would include a casino, up to 500 hotel rooms, convention and meeting space, restaurants and bars, and entertainment venues.
Chicago isn’t limiting operators to a location within the city’s jurisdiction, saying wants the developer to create an entertainment destination that will “enhance the urban fabric” of its surrounding neighborhood.
Chicago, with more than 9.5 million residents, represents one of the largest untapped gaming opportunities in the country. Lightfoot said the integrated resort could ultimately boost Chicago’s tourism market, which attracts 60 million visitors annually.
Lightfoot expects high interest among casino operators and developers in the RFP process based on the response the city saw when it announced a request for information on ideas for the integrated casino resort.
According to the summary that was released in December, MGM Resorts was one of four casino operators – along with Wynn Resorts, Hard Rock International, and Illinois-based Rush Street Gaming – that were among the 11 companies, real estate developers, consultants, and a neighborhood group that provided input to what the city termed as the first step in the planning process.
“We’re aware that people have been coming to Chicago since the legislation passed and they’ve been scouting lots of different opportunities,” Lightfoot said.
Under the timeline, the city plans to “negotiate” with one or more of the qualified applicants who will also present their ideas in community meetings and to the City Council. The city hopes to select the final applicant in early 2022 with the permanent casino opening in 2025.
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.
