MGM Resorts International is likely to turn down the bid for the Chicago game license, as stated by the company’s chief financial officer Jonathan Halkyard.
When questioned about the possibility during MGM’s first quarter earnings call, Halkyard stated:
Chicago presents a challenge.
The historical background of Chicago, its obligations, and the idea of a large-scale integrated resort do not always coincide. While we feel that progress has been made, at present, we are not overly focused or interested in this issue.
The mention of improvement likely pertains to the tax rate cuts in 2020. Nevertheless, the tax rates remain high, with income ranging from $225 million to $1 billion facing a tax rate of nearly 50%.
In addition, Bill Hornbuckle, CEO of MGM, stated that the company has no interest in Chicago, citing the complicated tax regulations as a contributing factor.
MGM initially showed interest in Chicago’s Request for Proposals (RFP), but ultimately chose not to submit a request, which came as a surprise.
The president wants Chicago to have Las Vegas.
Chicago Mayor Lori Lightfoot recently suggested the type of applicants she would like to see for the casino license.
Lightfoot declared:
We aim to achieve the highest standards to attract top gaming companies globally with our Request for Proposal (RFP). While we cannot disclose specific brand names, it is evident that receiving applications from certain companies would be extremely gratifying for us.
The information mentioned earlier is relevant to MGM’s current situation. Lightfoot remains optimistic that other businesses will not follow in MGM’s footsteps, despite the possibility that other major entertainment companies in Las Vegas may choose to do so.
Wynn Resorts seems to view it as an opportunity, as they have expressed interest in it through the media.
According to Michael Weaver, a spokesman for Wynn, we are intrigued by the possibility of a major city like Chicago considering the development of a gaming resort.
Lightfoot criticizes the Illinois Gaming Board’s rhythm
Evaluating casino license applications in Illinois has been a lengthy process for the Illinois Gaming Board (IGB) since the passage of the 2019 gaming bill allowing for six new casinos in the state.
The game will take place in Waukegan, Danville, Rockford, Williamson County, the southern suburbs, and Chicago.
Several organizations submitted applications in October 2019, but as of now, no certificates have been issued.
In February, the IGB granted Hard Rock Casino Rockford a “preliminary suitability” rating for a license, but a final decision has not been made.
It seems that a game application for Chicago is still unavailable. Mayor Lightfoot has observed the sluggish progress of the Illinois Gaming Board.
Lightfoot told the Chicago Sun-Times in late April:
After submitting a proposal to IGB, we must act quickly. While I don’t want to criticize, I believe we need to expedite the process due to the extended time the game board takes to complete its task.
Additionally, BetMGM excluded Illinois sports wagering.
BetMGM has applied for sports betting in Illinois since September and is currently pending approval.
Illinois Governor JB Pritzker’s choice to allow in-person registration has had a significant negative effect on certain candidates, including sportsbook operator BetMGM.
BetMGM’s potential market access through Par-A-Dice Casino seemed promising at first, making them a strong competitor in the industry. However, pursuing this option may not be as appealing as it once was, with other opportunities potentially more enticing now.
With its significant financial backing, BetMGM may have the ability to pursue the $20 million mobile-only license that would allow for online sports betting registration for all. While the cost is high, it could still be a feasible choice for BetMGM.
Regardless of the circumstances, BetMGM is set to enter the sports gambling industry in Illinois.
Nevertheless, it appears unlikely that it will be in the casino in the near future.
