Big Vegas game operators refuse to bet on Chicago casinos
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The probability that a Chicago casino will actually be built depends on whether major game operators want to bet on coming to Chicago.
It must have been the week when the long-awaited Chicago Casino Project was finally launched.
Monday was the first deadline to submit a proposal to develop a proud project, but the city postponed the deadline to the end of October after a small number of bidders showed interest.
“By extending the deadline for interested bidders, the city can gather as many powerful, influential and transformative proposals as possible,” said Mayor Lori Lightfoot. In the statement Earlier this month we announced an extension of the deadline.
But so far, interest in bidding has been curtailed.
The city expects to license a world-class casino resort with up to 500 rooms, in addition to bars, restaurants, conferences and entertainment venues. The casino has already been allocated to Chicago’s underfunded police and fire pension funds, and hopes to generate as much as $ 200 million annually.
However, Chicago casino gambling tax rates are currently set at 40%, with MGM Resorts International, Wynn Resorts Ltd, Caesars Entertainment Inc. and Las Vegas Sands Corp. Major Las Vegas gambling companies such as take the pass to bid on the project.
“I think the casino in Chicago is a great idea,” says Brendan Bassman, partner and government director of a Las Vegas-based consultancy. Global Market Advisor.. “But it’s important to have everything in order to make that happen. And the challenge with this is not all the sun and the moon. Due to the high tax rates, the stars match this.”
Bassman says he believes the game’s tax rate needs to be significantly reduced.
“I halve it. I set it to 20%,” says Bussmann.
But he admits that legislative amendments in Springfield will be needed. “It’s not always easy to get this through in 2019 because we extended the session to make sure it passed through the game package.”
Richard Belotta, Assistant Business Editor Las Vegas Review-JournalAgrees that high gaming tax rates are the biggest obstacle to successful casino transactions in Chicago.
“Understand that the highest tax rate in Nevada is 6.75%, so there is a big difference between the tax rates,” says Belotta. “In the rest of the country, they range from 10% to 25%, and 40% are a bit steep.”
He also states that the future competitive environment for the gaming industry in the Chicago region is unclear.
“These companies are trying to gain as much market share as possible, but when they see that the proposal is being made within 30-40 minutes of Chicago’s proposal in Illinois, it becomes Indiana. Yes … yes. There are many competitors on the market, “says Velotta.
Chicago’s planned resort, but still a competition for those who just go out and spend the night playing slots and playing table games. “
Both Bussmann and Velotta said they believe the extension of the deadline would be of little help in attracting more bidders.
“I don’t think it makes a big difference to expand the timeline, and given that the Illinois State Capitol is involved in this, we know how difficult it is to change some of the parameters of the bidding process. And I don’t even know if they are willing to lower the tax rate, “Bellotta said. “But I don’t think extending the timeline will make a big difference to some of these casino companies.”
Bussmann praised the city for performing a “solid” and “prepaid” process, but said it was still unclear if enough attractive bids would be available.
“If there is a suggestion, I think they can make a difference and meet what they have for their goals and visions. I think they will move forward,” said Basman. “If not, you may be told,’I’m going to stab this again.’ “
Big Vegas game operators refuse to bet on Chicago casinos | Chicago News
