The casino industry is fast evolving and brands are re-strategizing to make the most of the markets they operate in. For Penn Entertainment, the effort comes in the form of a relocation of an entire casino operation. The Riverboat casinos in Illinois located in Aurora and Joliet will in the near future be set up in new land-based facilities.
Speaking on the move after the announcement had been shared with the public, the chief executive officer and president of Penn Entertainment, Jay Snowden, revealed that the brand had been contemplating the move for a while. The idea was floated when the law was amended to permit the relocation of land-side casino in Illinois. According to the press statement, Snowden admits that the company’s riverboats in Joliet and Aurora were aged and needed to be replaced.
What we cover
The Illinois casino budget
The casino which will be located close to the outlet mall is estimated to cost a whooping $360 million. The budget money will go towards building a new Aurora casino and hotel complex next to the Chicago Premium Outlets mall. If you are familiar with Exit 119, picture the casino standing close by off I-88. The construction of the project will be flagged off towards the close of 2023 but the exact date will be dictated by how soon or later the city authorities will be issuing regulatory approval.
Here is a breakdown of how the sum of $360 million will be utilized on the casino project construction;
- 900 slot machines
- 50 live table games (including a baccarat room and poker room)
- Barstool sportsbook with the ability to play host to popular Barstool personalities
- 200 hotel rooms
- Full-service spa
- Bars and restaurants
- 10,000 square feet of meet areas
- Event centre
The gambling scene is constantly changing and with a new crop of players dominating every season, it is important for investors to offer what is in demand to guarantee a return on their investment. Players love variety and this is what many upcoming operators are striving to offer. For those who want to offer comfort after the lifting of social distancing rules, the creation of personal place within play remains a luxury that many players will gladly pay for.
Snowden has revealed that their plan for Aurora is to set up a modern, top tier casino and hotel complex at an ideal location which has since been identified as a spot off I-88. This is a strategic location in the view of the investors because it will allow adequate serve to millions of visitors to the adjacent Simon Premium Outlet Mall.
In addition to that, the development in Aurora will comprise of a transaction to transfer certain parcels of land from the city. Up to $50 million of the project is expected to come from the city coffers through funding by the city through a new bond issuance, but must first go through final approval by the Aurora City Council.
The successful completion of the projects running in Illinois can be attributed to the support that the industry has been receiving from the leaders of the local community. On particular interest is the Mayor, Richard Irvin and his staff based in Aurora for offering visionary leadership for the launch of the projects. It is an exciting time for the management of Penn Entertainment because their plan to rebrand their sports betting outlets has materialized.
The cost of new Joliet casino
At the other construction site in Joliet, the cost of the new gambling establishment is expected to be about $185 million. The location of this casino is the Rock Run Crossings development project. Where exactly is this place? Rock Run Crossings lies adjacent to the I-80 and I-55 interchange and is several miles from the current Hollywood Casino Joliet riverboat property that is in the process of being replaced. This particular development will not have a hotel.
Just like at the Aurora location, construction on the new Joliet facility will begin in late 2023. Of course, this will have to wait for the release of pending city and regulatory approval. The new Joliet casino project will be comprised of;
- 800 slot machines
- 45 live table games (including a baccarat room and poker room)
- Barstool sportsbook
- Bars and restaurants
- 10,000 square feet of meet areas
- Event centre
Snowden has revealed that in Joliet, the anticipated casino is going to be situated in the Rock Run Crossings development mixed use project in close proximity to the I-80 and I-55 interchange, which offers exceptional visibility and accessibility.
The two casino projects will have a major improvement in the brand offerings particularly in the region of the highly attractive Chicagoland market while at the same time creating hundreds of new full-time jobs for the local communities. Snowden has also spoken on the bonuses that the Penn projects are going to offer to its customers. The projects are expected to generate strong free cash flow returns and create long-term value for our shareholders.
Final Thoughts
Before the recent Penn rebranding at the start of the year, the company was known as Penn National Gaming. The news that the company’s Hollywood riverboats in Aurora and Joliet would be moved from the shore to facilities further inland to where they would reach customers, is already in the public domain. Way back in 2019, Illinois embarked on an expansion of its gambling industry the highlight of which was a downtown Chicago integrated resort and five smaller casinos in the Chicago suburbs that included provisions to allow the state’s 10 riverboat casinos to seek state approval to move inland. The applications for the required approvals to facilitate the move have already been filed and the only thing left to do is wait.
