The City of Aurora, Illinois, has taken a significant step towards revitalizing its northeast side with the approval of a tax increment financing (TIF) district deal. This agreement between the City of Aurora and Batavia School District will allow Penn Entertainment to relocate the Hollywood Casino Aurora to a prime location near I-88, paving the way for a $360 million destination resort casino near the Chicago Premium Outlets and Fermilab.
Penn National Gaming is set to open its newest casino in the second half of 2025 or early 2026. The new casino will include a hotel, spa, and restaurants, and will be located in a prime location near the Pennsylvania Turnpike.
The relocation of Hollywood Casino to a new, state-of-the-art facility is expected to have a significant positive impact on the Aurora economy. The project is estimated to create approximately 1,200 construction jobs and 400 permanent casino jobs. Additionally, the casino is projected to generate over $20 million in annual tax revenue for the city.
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PENN Entertainment Needs an Upgrade for Aging Hollywood Casino Aurora
The Hollywood Casino Aurora has called downtown Aurora home since opening on its current riverboat location on the Fox River over 25 years ago in 1993. As one of the earliest casinos in the Land of Lincoln licensed under the Riverboat Gambling Act, it helped pioneer the gaming industry in the state.
Its current gaming floor spans 53,000 square feet with over 1,000 slot machines, more than 21 table games, and a dedicated high-limit poker room. It is also home to Penalty Box Sportsbook & Bar which serves up drinks for bettors in from a fourteen-foot large screen, a dozen 65-inch HDTVs, and ten 75-inch HDTVs.
Hollywood Casino Aurora’s riverboat location has three other dining and drinks options, including a Fairbanks Steakhouse, Slice, and Take Two Deli. The property also operates HollywoodCasino.com, one of the few online casinos in Illinois, but will soon be discontinued and replaced by the newly launched ESPN BET.
However, the casino’s aging infrastructure and limited space have hindered its growth potential. Recognizing the need for a more modern and expansive facility, Penn Entertainment, the casino’s parent company, explored relocation options.
Owner Penn National Gaming has had its sights set on building a larger integrated resort in a more accessible location off of I-88 that can better attract regional visitors. After over a year of negotiations between Penn and local officials, a tax deal was approved that will facilitate the long-planned relocation of Hollywood Casino Aurora to a prime site near Chicago.
A New TIF District Deal Reached for Hollywood Casino Aurora Relocation
The new TIF district agreement was approved by the Aurora City Council in a 6-4 vote on October 25th, 2023. It amends the existing River East TIF district to include the proposed casino site, allowing future property tax revenues from the development to help pay for $50 million in infrastructure improvements to roads, sewers, and other public works.
The TIF district, a designated area where increased property tax revenue is captured to finance development projects, plays a crucial role in the Hollywood Casino relocation project. The TIF district agreement outlines the financial incentives and obligations for both the city and Penn Entertainment.
These improvements are necessary to support the large-scale resort and entertainment complex Penn plans to build. The TIF is projected to generate $5.5 million annually that will repay bonds issued to fund the work.
Penn Entertainment has also agreed to establish a reserve fund to ensure payments are made if revenues fall short of projections. Both the City and Batavia School District 101, which stands to gain additional tax revenue once the TIF expires, see the deal as mutually beneficial for economic growth.
Under the agreement, the city will reimburse Penn Entertainment for eligible costs associated with the relocation project, up to a maximum of $210 million. This reimbursement will be funded by the incremental property tax revenue generated within the TIF district. The agreement also includes provisions for job creation, revenue sharing, and public benefits.
Plans for the New Casino Resort
Penn Entertainment’s relocation plan for Hollywood Casino Aurora was approved unanimously in October.
Situated on 100 acres off Farnsworth Avenue near I-88, the new Hollywood Casino Aurora destination resort is planned as a $360 million investment. It will include an 18-story hotel tower with over 200 guest rooms.
The 200,000-square-foot gaming floor will feature over 1,200 slot machines and 45 table games, with standalone poker and baccarat rooms. Multiple dining options are planned from casual bars and restaurants to upscale steakhouses.
A large ballroom and meeting spaces will host concerts, conferences and other major events. Outside, parking for over 2,000 vehicles and landscaped public areas are designed to create an attractive campus-style environment.
Penn CEO Jay Snowden said the new location near Chicago will allow them to better compete for customers throughout the region. The hopeful site was most recently occupied by a car dealership and a couple of hotels.
Community and Regulatory Approval Process
The project still requires approval by the Illinois Gaming Board, which extensively regulates the gaming, licensing, and operations of all casinos in the state. Public hearings will be held to gather input on Penn’s license application and compliance with regulatory standards.
Aurora city leaders expect the development to provide significant economic benefits through new jobs and tax revenue over the decades-long lifespan of the TIF district. Some local residents have expressed concerns about increased traffic congestion, especially during large events.
Summing Up
The City of Aurora has approved a tax increment financing (TIF) district deal that will allow Penn Entertainment to relocate the Hollywood Casino Aurora to a prime location near I-88, paving the way for a $360 million destination resort casino near the Chicago Premium Outlets and Fermilab, which is expected to create jobs and generate over $20 million in annual tax revenue for the city.
