Chicago is getting closer to approving its first casino resort, and hopes are high it will open by 2025.

The City of Chicago issued a Request for Proposal (RFP) last week for casino operators to apply for a single casino license within the city. Such news comes on the heels of Mayor Lori Lightfoot she was hopeful of putting out an attractive RFP that appealed to some of the biggest casino operators in the industry.

Chicago Is an Attractive Destination

The third-largest city and metropolitan area in the nation, Chicago is home to nearly 10 million residents. Over 60 million Americans and another 1.5 million international visitors also visited the city in 2019, up from its 2016 figure of 54 million, good for second in the nation only to New York City.

Such a sizable market will undoubtedly be attractive to casino operators. The locale becomes even more desirable when factoring in that the eventual winner will also be able to choose its optimal build site, pending the city’s approval. Beyond that, the passing of related Public Act 101-648 will grant the operator a significant tax rate reduction.

On top of the casino build, whoever is chosen may also have access to operate slot machines at Chicago’s two international airports, O’Hare (ORD) and Midway (MDW).

Bringing Sin City to the Second City?

Casinos are nothing new to Illinois or the greater Chicago area, with the first riverboat casino opening in 1991. But Chicago is also not looking for a riverboat or any routine establishment to represent what looks to be its only casino resort. City leaders want the property to stand out as one of the top gaming and travel destinations around.

“We want to make sure that we put out an RFP that’s going to be attractive to some of the top gaming ventures in the world, so for us, the sky’s the limit,” said Mayor Lightfoot back in March. She also followed up on that statement last week, saying that the city looked forward to working with world-class partners “to develop a premier entertainment destination” and also hinted at the hopes of receiving some bids from companies with “Las Vegas addresses.”

Staying True to Home

Some stipulations within the RFP include an onsite hotel with a maximum of 500 rooms and meeting spaces, bars and restaurants, and entertainment venues. The ultimate goal is to create growth within the city’s economy while creating new and sustainable job opportunities for community members.

Such a project needs to benefit the city, one that will “enhance the urban fabric of its surrounding neighborhood.” The city has stressed a need for certain elements within its Chicago casino proposals, including but not limited to:

• Creating well-paying jobs and training programs for Chicago residents
• Supporting local businesses
• Generating gaming tax revenues to help fund police and fire pension obligations
• Meeting LEED development standards alongside a unique and high-quality architectural design
• Integrating into Chicago’s existing landscape and communities while providing top quality service on all fronts

What’s Next In The Chicago Casino Proposal Process?

All prospective applicants have until July 23, 2021, to submit written questions related to the RFP, and all Chicago casino proposals will be due by 2 p.m. local time on August 23, one month later. From there, applicants will make public presentations of their proposals sometime in late September. All necessary meetings should occur by year’s end, with the city expected to announce its selected applicant early in 2022.

More competition is on the way outside Chicago city limits as the market continues to become saturated. Across the border at Indiana sportsbooks,

Horseshoe Hammond and Ameristar East Chicago will see new competition with the Hard Rock Casino Northern Indiana opening in Gary, which will replace the now-closed Majestic Star. A new Ho-Chunk Nation casino will soon be opening in Beloit, WI, about 90 minutes northwest of Chicago.

MGM Is Already Out

Despite Mayor Lightfoot’s expressed desire to bring Las Vegas players to her city’s casino landscape, one such casino giant in MGM Resorts International has already indicated a lack of interest.

According to MGM CEO Bill Hornbuckle, the company is primarily focused on getting its Las Vegas properties back to 100% capacity. Additionally, the company is emphasizing its online gambling entity, BetMGM, which has experienced tremendous growth in the past year and has plenty more opportunities to continue expanding.

With that being said, such an announcement could leave the door open for another competitor to take advantage of a big chance at cornering one of the biggest gambling markets in the nation.