In 2019, Governor J.B. Pritzker has signed an 816-page outlining an infrastructure plan worth an estimated $45 billion into law. As a result of this plan, the state was to add 6 new casinos, one of which would be situated in Chicago. As part of the investment plan, the state also vowed to increase the number of video gambling machines, as well as increase the gambling positions from the surviving 44,000 to 80,000.
In addition, the state also promised to transform racing tracks into racinos, which would allow casinos to operate at 3 existing casino tracks as the state waits to construct 2 new racinos. By the end of last year, the state had managed to live up to most of its promises. At present, there are more than 7,000 additional video gaming establishments, at least 5,000 lottery-like sports betting kiosks, 16 casinos, and 5 racinos.
When this plan was first introduced, conservatives were quick to blast it. However, the Governor assured policymakers that the casino expansion would result in at least 10,000 new jobs, which are needed after the challenges of the pandemic that we are still dealing with today.
According to the Governor, video gaming terminal taxes are also expected to the tune of $150 million while at least $500 million will be generated from license fees from casino and sports wagering. An extra $10 million will be acquired from sports betting revenue.
One of the only things that the state is yet to actualize is the casino resort. Gambling supporters have always wanted to construct a casino in Chicago, which is one of the nation’s most vibrant and biggest cities, as a revenue generator for the state. Plans to erect a casino in the city have been in the works for decades but have never happened until now.
This new proposed casino in Chicago is expected to be one of the largest brick and mortar casinos in Illinois and will feature more than 4,000 slot machines, as well as gaming tables. Although the potential for generating state revenue is massive, things have not been going as smoothly as expected and have delayed the construction of the casino.
The operator picked to run the only casino in Chicago will also enjoy rights to offer slot machines at airports, which is an opportunity to generate even more revenue. However, the operator that is picked will also have to pay $120 million in licensing and an array of other fees. In addition to this, the operator has to share two-thirds of its casino revenue with the state and the city.
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Debates Concerning the Location of the Casino
That high tax rate and a mix of other tough conditions are why the casino project was difficult to market in the first place. Plus, there have been wrangles and debates concerning the location of the casino, which has delayed the project even further. The Governor had previously said that he preferred the casino to be located outside of the CBD in order to give marginalized communities outside the CBD more employment and development opportunities.
The final decision as to where the Chicago casino will be located, however, rests with the developer and the recently elected mayor Lori Lightfoot. Several suggestions have been brought forward including the vacant old Michael Reese hospital, which is characterised by good transit and access to roads. The downside to this location is that the Bronzville constituents are opposed to the idea of having a casino in their community.
Several other policymakers have conveyed their interests in having the casino located in their jurisdictions, but none have managed to convince the mayor just yet. Most of the other locations that have been suggested are either too far from downtown’s travellers and business people while others do not have good access.
In November last year, city officials unveiled the 5 finalist casino proposals, which gave Chicago residents a glimpse of what the future mega casino might look like. The 5 casinos were proposed for several locations including:
A Site Situated near McCormick Place
The McCormick Place was another one of Bluhm’s suggestions. This proposal aims to construct a casino worth $1.3 billion nearby McCormick Place. This casino will include 2600 slots and 190 table games, 250 new hotel rooms with plans to make full use of the 2900 already existing rooms at McCormick Place. It will also include 12 restaurants, 4 bars, and lounges, as well as a 4,200-seat theatre.
The Chicago Tribune Printing Site
This is Bally’s one of 2 proposals that will see a $1.8 billion casino constructed at the current headquarters of the Chicago Tribune and its publishing centre, which is located along the Chicago River. Bally’s plan for this site includes more than 3,000 slots, 173 table games, 6 restaurants, cafes, a food hall, 3 bars, and lounges, as well as 500 hotel rooms.
The Old Michael Reese Site
This is the second proposal from Bally’s. This proposal is a $1.6 billion casino to be located on the South Lakefront, which is close to the newly sanctioned Michael Reese mega-development. The plan will include 3,400 slots and 173 table games, 6 restaurants, cafes, a food hall, 3 bars and lounges, 500 hotel rooms, as well as a 3,000-seat venue for entertainment.
The One Central Development Site near Soldier Field
This one Central development proposal was submitted by Hard Rock. Hard Rock plans to construct a $1.7 billion casino near Soldier Field. However, this project will require billions in state grants to get started. This plan includes 3000 slots and 166 table games, 8 restaurants, cafes, and a food hall, 6 bars, and lounges, up to 500 hotel rooms, as well as a 3,500-seat entertainment venue, as well as a world-class spa.
The 78 mega-development is situated on the south branch of the Chicago River.
This is Bluhm’s $2 billion casino to be constructed at The 78. This mega-development will include 2600 slots and 190 table games, 8 restaurants, cafes, a food hall, 300 hotel rooms, 5 bars, and lounges, as well as a riverfront venue and observation deck.
Final Thoughts
Each of these proposed sites, except the Rivers Chicago site near McCormick Place, is expected to contain a hotel. Rivers Chicago at McCormick already has an existing infrastructure and 2,900 rooms that could be used by guests. The McCormick place was suggested by billionaire Neil Bluhm.
