One lucky gaming operator will soon be awarded a chance to establish a presence in one of America’s largest cities.
The City of Chicago expects to issue a Request for Proposal in early April to pave the way for what’s being billed as a once-in-a-generation opportunity for gaming operators: the awarding of a single casino license within the city.
“Chicago is ready to become the home of a major casino-resort which will enhance our thriving entertainment and cultural scene,” said Chicago Mayor Lori Lightfoot in a statement.
“We want to make sure that we put out an RFP that’s going to be attractive to some of the top gaming ventures in the world, so for us, the sky’s the limit,” Lightfoot added. “I don’t want to name names, but obviously there are some that we would be very excited if they applied.”
In December 2020, four major gaming operators — MGM Resorts International, Wynn Resorts, Hard Rock International, and Illinois-based Rush Street Gaming — were among the 11 companies that responded to the city’s request for ideas about the planned downtown casino. At the time, when contacted, all four companies either declined comment or did not respond to email requests regarding their interest in developing a casino in Chicago.
Chicago has many elements that make it attractive to casino operators. It is the third largest metropolitan area in the U.S., with a population of 9.5 million. A hub for domestic and international travel, the city hosted over 61 million visitors in 2019, 1.5 million from foreign countries. It is also home to more than 400 major corporate headquarters, offices, and facilities.
Two years ago, a casino within Chicago’s city limits seemed untenable. The Chicago Casino Feasibility Study, commissioned by the Illinois Gaming Board and the city, and conducted by Union Gaming Analytics, indicated that casino operators would have little chance of profitability due to a burdensome tax structure.
But in May 2020 the Illinois legislature passed Public Act 101-06481, which provided a significantly lower tax rate for the possible casino owner.
Grant Govertsen, principal, Union Gaming said in a statement that while COVID-19 casino shutdowns, financing concerns and delayed development plans hindered Chicago’s plans in 2020, the “license is among the best casino-resort development opportunities right now.”
“The combination of available capital and attractive Chicago market metrics make the opportunity prime for a Las Vegas-style integrated resort,” Govertson said.
The new casino operator will be awarded the option to launch a fully integrated resort with possible amenities including a hotel tower, restaurants, spa facilities and entertainment venues. The license holder can own and operate a temporary casino for up to 36 months, and a permanent casino thereafter.
In February, racetrack and casino operator Churchill Downs, owner of Arlington International Racecourse in Arlington Heights, put the the historic racetrack up for sale. The Louisville-based company has hired real estate firm CBRE to market the 326-acre site’s future as a redevelopment opportunity.
Churchill Downs said it was committed to running the track’s 2021 racing season from April 30
The timeline of the RFP will be announced in the coming weeks. Companies interested in receiving the RFP are welcome to reach out to chicagocasino@cityofchicago.org for more information.
