Chicago Mayor extends request for proposals to build its first casino by over 2 months
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hicago Mayor Lori E. Lightfoot announced Friday a deadline extension to respond to the casino Request for Proposal (RFP) to Friday, October 29.
Originally, bidders had until Aug. 23 to submit a proposal. This new two-month extension gives potential bidders “more time to fully assess the Chicago casino opportunity; conduct additional due diligence; assemble more competitive bid packages; and explore financing opportunities,” says the Mayor’s Press Office.
The announcement comes amid reports that there has been minimal interest from prospective casino operators. Crain’s Chicago Business reports the city has received only one bid so far, with that coming from a partnership between casino mogul Neil Bluhm and .
The Chicago casino project is “one of the most attractive casino-resort development opportunities in the country,” according to a press release statement for the extended deadline. Chicago currently possesses 9.5 million area residents and has welcomed 1.5 million international visitors in 2019.
“The potential gaming operator will have the opportunity to incorporate its property into the City’s vibrant cultural scene, robust public transit infrastructure, and highly diversified economy,” defines the statement.
The city plans to start developing its first gambling property by early next year with an estimated 2025 opening date. Chicago will award one casino license, which enables construction of a resort at a location determined by the winning applicant.
The license holder will be able to operate a temporary casino for up to 24 months, subject to a 12-month extension to generate revenue before the completed resort’s opening date. Moreover, the winning vendor will be able to operate slot machines at the city’s two major international airports, O’Hare and Midway. The number of slows between these two airports and the resort will be limited to 4,000 total.
Major Lightfoot has set a number of requirements for the casino, among them the commitment to at least 26% minority business enterprise participation and 6% for women-owned businesses, with 50% of work hours set aside for city residents. Proposals must also include plans for a 500-room hotel, meeting space, restaurants, bars and entertainment venues.
It is expected that casino-resort companies based in Las Vegas may consider submitting proposals for consideration, although two leaders of coporate gaming, MGM Resorts International and Caesars Entertainment, have already decided to pass on the project due to considering it a "risky proposition" despite tax rate being lowered, Chicago Sun-Times reports. Rush Street Gaming has expressed interest in a potential casino.
Once the office selects a final applicant, approval from several city agencies and ultimately the City Council must be obtained. After that, the chosen developer will apply for Gaming Board approval.
“A big part of the issue is making sure that the Illinois Gaming Board really puts in the time and resources that are necessary,” said Lightfoot, as reported by Chicago Sun-Times on April. Complaints by leaders in other municipalities granted with new casino licenses have pointed in this direction, with projects seeing delays of over a year.
On the opportunities opened by this gaming initiative, Mayor Lightfoot called it a “historic” project that stands to expand “the economic vibrancy and strength” of the city by bringing sustainable, good-paying jobs to residents from underrepresented backgrounds, as well as creating a “world-class” casino-resort to attract visitors worldwide.
"Extending the deadline for interested bidders will allow the City to collect as many robust, impactful and transformative proposals as possible. I look forward to seeing these bids roll in and working very closely with whichever team is ultimately chosen to develop Chicago's first-ever casino," added Mayor Lightfoot.
