All three developers jockeying for a Chicago casino trotted out their proposals Thursday “replete with soaring promises of economic jolts, job creation and jackpots for the city’s future casino tax revenue coffers, which are earmarked for its depleted police and firefighter pension funds.” Mayor Lori Lightfoot (D) tried to wax cautious about the glowing promises, which included “an Eiffel Tower for Chicago” but hype was the order of the day-long session. Said Lightfoot afterward, “They look beautiful and they’re saying a lot of things that really, I think, speak to our values, but as you all know, the devil’s in the details and my financial team is going to do a deep scrub to make sure that we understand: Are these projects really viable?”
In an ill-concealed dig at Bally’s Corp. (an acquirer rather than a developer), Neil Bluhm jabbed, “Chicago needs an experienced developer with a steady hand. This is not the time or project for on-the-job training.” The Windy City needs “an experienced team who has done developments like this—exactly like this—before.” Bally’s execs didn’t let that pass. “Yes, we have built casinos from the ground up,” replied Bally’s Chairman Soo Kim testily. Alluding to Rivers Casino Des Plaines, they said they (unlike Bluhm) were free of conflicts of interest in the market. Regardless of which of its two proposals is chosen, Bally’s promised 2,000 permanent jobs and 7,500 construction ones. However, its South Side pitch ran into immediate opposition from Alderwoman Sophia King. Kim promised to be tractable to King’s concerns.
Bluhm’s Rivers 78 proposal has an observation tower that looks more like an oil derrick than anything Parisian (or indeed interesting). His job-creation claims were more modest: 7,000 permanent and temporary combined, plus $600 million in annual gross gaming revenue. The big stumbling block for the Hard Rock International proposal is that it’s contingent on $6.5 billion (unapproved) state financing for a transport hub at its base. The company hopes its high (50%) level of Black and Latino investors will help make up for that. They predicted $908 million a year in revenues and disclosed they had the financing to begin immediately.
Lightfoot wants a completed casino by 2025 (Bluhm says he can finish his McCormick Place project [above] in a year but Rivers 78 would take 2.5 years), so it would behoove her to decide quickly. (In other Second City-related news, former mayor Rahm Emanuel was confirmed as ambassador to Japan. Anything that gets Emanuel out of the country is good with us.) The mayor also wants $200 million in casino-tax revenue. In Bluhm’s largest market, Philadelphia, he’s generating $110 million in taxes per year, although his Chicago plans call for a larger casino than Rivers Philadelphia, which sustains 1,600 jobs. He employs another 1,400 at Des Plaines, far and away Illinois‘ highest-grossing gambling house. Rivers Schenectady is not doing so well and is sustaining 1,100 employees, 100 fewer than promised.
Hard Rock has the highest employee numbers: 3,200 in Hollywood, Florida. Due to tribal ownership, no one outside knows how much revenue all the Hard Rocks generate, although they have performed impressively in Atlantic City ($350 million last year), Cincinnati and Gary. In terms of drawing power, it has to be judged the leader. As for Bally’s, it’s struggling in Atlantic City and not producing Rivers- or Hard Rock-scale numbers anywhere (partly a function of the size of its assets). Never having built anything remotely on the size of what pitches for Chicago, it will have the toughest case to make.
Although the NFL managed to play its full 2020 schedule without interruption, it has not been so lucky this year. The league just announced that three games would postponed due to Coronavirus, including the Las Vegas Raiders‘ tilt against the Cleveland Browns, shunted to Monday afternoon. Over 100 players tested positive for Covid-19 just in the last week. (Two NBA games and an unspecified number of NHL matches were also delayed.) Seattle Seahawks at Los Angeles Rams and Washington Snyders vs. Philadelphia Eagles will be played on Tuesday night. The NFL also rolled out a severe new list of Covid protocols. It will be interesting to see how the three football reschedulings affect Monday’s betting lines. They’ve already provoked a tantrum from Raiders owner Mark Davis. We suppose he needs someone to lash out at while his team is tanking.
Disconnect of the Day: “New proof Atlantic City casinos doing well; tax breaks near” in the Connecticut Post. “Numbers at Atlantic City Casinos Show Cash Rolling in, Tax Breaks Could be on the Way Out”—headline in Newsweek
Rahm Emanuel…ha ha ha. Agreed!
On the AC numbers, they are certainly not doing as well as the Press of Atlantic City reports, no Wayne Perry. Just look at the brick and mortar numbers! Sports and virtual gaming income are shared with their provider partners and I believe taxed much more?