Chicago Casino Pitches Include a $1.7 Billion Hard Rock

(Bloomberg) -- Chicago is sifting through five proposals, with costs ranging from $1.3 billion to $2 billion, to build the sole casino within the city limits of America’s third-largest metropolis.

Mayor Lori Lightfoot released details Friday about the proposed bids. City officials said they plan to fast track approval of the project, with a winner picked in early 2022. A casino eventually is expected to provide the city as much as $200 million in annual tax revenue, which is intended to help pay for police and fire pension costs.

“Each proposal provides a unique vision for what Chicago’s casino-resort could look like, and our expert review committees are ready to dive into discussions to usher in a new and exciting era for our city,” she said in a statement.

The plans include a $1.7 billion Hard Rock with a 3,500-seat live music venue near the McCormick Place convention center. Rush Street Gaming, the only Chicago-based bidder, proposed two projects, including a $2 billion development at a former rail yard on the city’s South Side. Rush Street was co-founded by real estate magnate Neil Bluhm.

Three of the bids proposed developments are near the convention center, one of the busiest in the world. The least expensive proposal, also from Rush Street, includes a $1.3 billion food and entertainment complex that would connect to McCormick Place via a bridge and use existing hotels rather than build a new one.

Bally’s Corp. proposed two projects, including a $1.6 billion complex at a truck parking lot near the convention center and a $1.8 billion one at the site of a Tribune printing plant along the Chicago River. 

The bids include the right to operate slot machines at the city’s airports as well the ability to open a temporary casino while the permanent one is under construction. One of Rush Street’s bids includes plans for a temporary riverboat casino. 

Despite offering the sole casino license for America’s third largest city, some of the biggest names in the casino industry decided to pass on the opportunity, including MGM Resorts International and Wynn Resorts Ltd. One of the drawbacks is the tax rate, which even after being lowered by the state legislature, is expected to be around 40%.

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