In early May, Chicago Mayor Lori Lightfoot and her administration chose to grant permission for Bally’s to construct a new casino in the city. Bally’s won the opportunity over Rivers 78 and Hard Rock.
After almost seven months of evaluating multiple project proposals, Lightfoot and her team announced Bally’s as the chosen winner last week. They were tasked with sifting through the various applications.
Yet, Bally is associated with a financial advisory firm that is questioning the fairness of the recruitment process.
Why did Bally & rsquo, s win the casino in Chicago?
Several factors contributed to Bally’s success in securing the Chicago casino bid.
Bally & rsquo was the first to make the highest initial payment to secure the approval of Chicago & reg.
Bally made an unprecedented $25 million offer to buy the gaming license, which no other company was able to match.
In addition, Bally’s labor contract was considered the most reliable for the construction of their proposed casino, making it a crucial aspect in the eyes of the Chicago City Council.
In conclusion, Lightfoot and her team relied on forecasts from an outside company to identify the casino that would yield the highest revenue. The projections pointed towards Bally’s as the most financially advantageous choice for the city.
This probably made it easier for Lightfoot to continue with Bally, but it also marked the start of complications.
Union Gaming, an expert company, provided estimates for Lightfoot and her staff. However, Bally & rsquo, a business that collaborates closely with them, is beginning to doubt the accuracy of those predictions.
Bally & rsquo collaborates with Union Gaming.
Union Gaming is an investment bank specializing exclusively in the gaming sector, providing guidance and assistance to government entities, industry professionals, and institutional traders, as stated on their website.
Last year, Union Gaming facilitated Bally’s successful fundraising of $696 million, marking a significant financial boost and strengthening the company’s ties to Bally.
Given their past relationship, there are some people who are wondering if Bally & rsquo received a significant revenue forecast in order to secure their selection by Lightfoot and the city of Chicago.
Alderman Brendan Reilly of Chicago’s 42nd Ward appeared on WGN Radio to discuss the current situation.
We have been instructed to rely on a lone analysis, report, and revenue projection produced by Union Gaming, a firm contracted by the city for analysis support. It is worth noting that Union Gaming made a $700 million donation to Bally last year. This raises concerns about the accuracy of the information they are supplying.
Reilly characterizes River North as a vibrant, bustling neighborhood experiencing substantial growth. This is where Bally’s is planning to open its new location. Reilly is confident that the addition of a casino in the area could boost economic development.
He thinks that Chicago may have used multiple financial reviews during the recruitment process, especially since the one they ultimately chose had strong ties to the successful company.
For the time being, the game project is moving forward according to plan.
Approval from both the Chicago City Council and the Illinois Gaming Board is still pending for Bally’s. The process may drag on for weeks or even months due to its contentious nature.
