Bally's Corporation Wins Bid for $1.7 Billion Chicago Casino

The City of Chicago has taken the next step big in developing its first casino resort. Chicago Mayor Lori Lightfoot recently announced that the city had selected Bally’s Corporation’s $1.74 billion plan to develop and operate a Casino in the Illinois metropolis. Speaking on the decision, Mayor Lightfoot said:

Quote

“I am proud to announce that Bally’s Corporation will create a world-class Entertainment district in our city that will delight residents and tourists alike. Following significant analyses and community input on all aspects of our three finalists for Chicago’s casino license, the selection committee and I have chosen Bally’s to move forward in the development of the city’s first integrated casino resort.”

The $1.7 billion integrated casino resort will be located where the Chicago Tribune’s printing plant sits in River West.

A Better Vision Saw Bally’s Emerge Victorious

The decision by Mayor Lightfoot comes on the back of a very competitive process that saw Bally’s corporation edge out a couple of equally able competitors. Initially, Bally’s had submitted two proposals to the city. One of the proposals had intended to turn the McCormick Place Track Marshaling Yard into Chi Town’s premier gaming hub. However, this proposal was cut in March when the city narrowed the battlefield from five to three. The other two suggestions that came from Hard Rock and Rush Street Gaming were also impressive, but there had to be only one winner at the end of the day.

Some even thought that Rush Street Gaming had the upper hand owing to the fact it was founded by Chicago native Neil Bluhm who also happens to operate Rivers Casino. That was, however, not meant to be. It seems that Bally’s Corporation had the mayor right where they intended to. Mayor Lightfoot commended Bally’s vision and willingness to constantly make adjustments to their plan as one of the most significant reasons city officials chose it.

One thing that stood out also for Bally’s corporation in this process was that it would in no way face the prospective issue of revenue cannibalization. As for Rush Street Gaming, the company would have faced such challenges given that it operates the Rivers Casino. Likewise, Hard Rock also operates a brick-and-mortar casino in Indiana.

Inside Bally’s Corporation’s $1.7 Billion Plan

So, how did Bally’s proposal sail past the competition? What specifics swept the powers that be off their feet? Well, the bid from Bally is set to feature a casino project and a hotel. This will include the following:

• 3,000-capacity theatre
• Immersive agency exhibition experience
• Pedestrian bridge
• Outdoor park
• Extension of the riverwalk
• 500-room hotel tower
• Outdoor music venue
• Amenity terrace featuring a pool, six restaurants, a fitness center, a food hall, and cafes.

As for the casino, Bally’s corporation’s plan explains that it intends to have 3400 slots and 170 tables. Having all these laid out for the future, it is easy to see why the mayor was swayed to choose the plan. That, coupled with the fact that the construction of the casino is expected to bring forth tons of employment opportunities, including 3,000 construction jobs.

Upon completion, the venture is also expected to take in about 30,00 permanent employees. Under this employment plan, Bally’s will target neighborhoods with the highest levels of unemployment and lowest incomes in Chicago to source their employees. The perks that come with the opportunity are also quite impressive, with the corporation targeting entry-level annual salaries of $50,000 for the workers.

After seizing victory in the hotly contested process, the Chairman of Bally’s Corporation’s Board of Directors, Soo Kim, expressed his gratitude to the mayor’s office, saying:

Quote

“We would like to thank Mayor Lightfoot and her office for conducting a tough but fair RFP process and selecting Bally’s Chicago as the final bidder for the city’s casino. Chicago is a unique and vibrant city, deserving of world-class gaming and entertainment destination that is of, by, and for the people by driving the local economy, supporting local labor, creating multigenerational wealth for minority investors, and showcasing the best of what the city has to offer. We look forward to continuing to work collaboratively with Mayor Lightfoot and all of our valued community partners on this exciting endeavor.”

The agreement is set to see Bally’s paying an annual $4 million fee which will accompany an upfront payment of $40 million as a result of entering a Host Community Agreement with the Chicago City.

Bally’s Victory Faces Some Backlash

The news about Bally’s selection for the casino project has largely been received well. The company even took the step of lobbying and getting the support of the labor unions in Chicago. However, there’s been some opposition to the project, particularly among people living in the vicinity where the casino will be located. Some feel that their views were not well echoed as to whether the casino would best serve Chicago’s interests.

Brendan Reilly, who is an Alderman who represents the neighborhood where the casino will be located, expressed reservations about the process of awarding Bally’s the project in a tweet that read:

Quote

“We were also told the Council’s Special Casino Committee would hold more hearings, gather more testimony and ask more tough questions to determine what is in Chicago’s best interest. The process was flawed from day one, but now that process is being thrown out the window entirely.”

Nonetheless, if things go according to plan, Bally’s Corporation plans to kick things off with a temporary casino at the Medinah Temple in the River North Neighborhood as soon as 2023. The move is a strategic one, as the temporary facility will take advantage of the high traffic synonymous with the area as city residents wait for the permanent structure.