(Bloomberg) -- Chicago received offers from three gambling companies to build the sole casino in America’s third-largest city, officials said Friday.
Bally’s Corp., Hard Rock International and Rush Street Gaming all submitted bids for what’s expected to be a $1 billion-plus hotel, casino and entertainment complex. The winner will also get rights to operate slot machines at O’Hare and Midway airports, according to an earlier request for proposals.
Mayor Lori Lightfoot, a strong backer of the casino, has pitched the project as integral to the city’s growth, and a way to help chip away at rising pension costs. While jobs from construction are expected to boost employment, a temporary casino could start to bring in tax revenue quickly. Bidders were instructed to submit plans for minority participation, including in construction and contracting. A city committee will recommend a winner, subject to approval by the mayor and council.
“The submission of bid responses represents a major step toward the thoughtful development of a casino-resort that uplifts our businesses, employs and empowers our residents and encourages tourism,” Lightfoot said in a statement Friday.
The city will take in an estimated $160 million to $200 million a year in tax and fee revenue once the casino is operational, officials projected in April. Chicago’s unfunded pension liability across four funds tops $31 billion, nearly twice the size of the 2022 budget of $16.7 billion approved by aldermen this week.
Read more: Chicago seeks casino bids, to pick winner in early 2022
Rush Street, co-founded by local real estate magnate Neil Bluhm, had been widely anticipated to make a bid. It submitted proposals for two sites, one near the McCormick Place convention center and another at 78 Chicago, a former railroad yard south of downtown.
Bally’s, whose name dates back to a pinball company based in the city, is also proposing a McCormick Place location, as well as that of a Tribune Co. printing plant. The company has been acquiring casinos across the country at a rapid pace, seeking to capitalize on the legalization of sports betting.
“This is a big opportunity for us,” Bally’s Chairman Soo Kim said in an interview Friday. “It would become our flagship.”
Hard Rock already has a casino in Gary, Indiana, and Rush Street has a property in Des Plaines, Illinois.
Getting to this point has taken decades, with talks extending from Chicago City Hall to the state capital of Springfield to the Las Vegas Strip.
Chicago’s efforts to attract bids following 2019 legislation authorizing the license were hobbled initially by an unappealing tax rate that topped 70%. The Illinois General Assembly lowered that to around 40% at the behest of Lightfoot, boosting the project’s appeal for operators.
Operators including MGM Resorts International and Wynn Resorts Ltd. considered making proposals but but ultimately chose not to bid.
“It’s a struggle how it all adds up,” MGM Resorts Chief Executive Officer Bill Hornbuckle said in an interview earlier this month.
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