Chicago Casino Bidding Facing InvestigationsOfficials Scrutinize Bally’s Deal And Temporary Casino Plans |
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Chicago’s new temporary casino may have gotten off to a fast start, but officials are now reviewing the process that handed Bally’s the license for that facility and a future permanent casino resort that is already in the works.
Crain’s Chicago is reporting that both City Inspector General Deborah Witzburg and the U.S. Attorney’s Office are reviewing the awarding of the license. The investigations appear to revolve around financing of the casino and alleged conflicts of interest among some involved representing the city.
“Bally’s faced controversy earlier when it was allowed to alter the terms of its financial deal with minority investors after inserting a clause that could buy out minority shares at a non-negotiated price post-casino opening,” Crain’s reports. “Reports also revealed discrepancies in the fees charged to different bidders and conflicts of interest with city consultants evaluating financial prospects.”
Bidding, Financing Plans Face Scrutiny
Awarding the license to Bally’s comes after former Mayor Lori Lightfoot (D) long sought a gambling resort for the Windy City. The city unveiled the 34,000-square-foot temporary facility at Medinah Temple with 800 slots and 56 table games in October.
A $1.7 billion property at Freedom Center in the River West area is expected to replace that by 2026. The resort will house 3,400 slots, 170 table games, a 500-room hotel, a 3,000-seat entertainment venue, six restaurants, and more.
However, some city officials have said the process was flawed and that Bally’s doesn’t have the financing to build the casino. City alderman Brian Hopkins has been a vocal critic and said the process wasn’t fully transparent.
In a recent council meeting, he expressed his concerns including that revenue from the temporary casino has flatlined since opening.
“Bally’s has already indicated that they’re not in a hurry to start construction,” he said. “They’re years away from it. They don’t have the money to do it. They were counting on the cash flow from the Medinah Temple site to fund the construction project, and right now, they don’t have it. The signs are on the wall that they’re going to stay (at Medinah) longer.”
Will The Project Be Halted?
State officials recently proposed a plan for temporary casinos to operate longer. Current gaming regulations allow for 24 months with a 12-month extension. The proposed law would now allow for extending a temporary casino for any “period of time deemed necessary or appropriate.”
Hopkins now doubts Bally’s will be able to complete the project. He has criticized the Lightfoot administration for awarding the project to the company.
“The real risk now is that they turn [Medinah Temple] into a permanent temporary site where it just keeps getting renewed over and over again,” Hopkins said. “That’s not what we needed. We’ve been talking about a Chicago-based casino license for years, and what we finally end up with after all this is woefully inadequate. It’s really sad.”
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