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Mayor Laurie Lightfoot’s administration is adding to the profile of the three finalists who want to build and operate the city’s casino.
In recent days, the administration has asked teams led by Hard Rock, Bally’s and Rush Street Gaming to commit to tens of millions of dollars upfront to the city if they win the valuable gaming rights, sources close to the matter said.
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The mayor reportedly earns $40 million now, plus $2 million a year — or a total of $75 million if all the money is paid out now.
It’s unclear whether the money will go into the general city budget, which remains under some financial pressure, or for specific neighborhood projects or other purposes. According to one source, the term outlining the city’s big request is “ambiguous.”
It’s also unclear whether the money is an early payment of taxes the casino ultimately expects to pay, or an additional supplement.
In a written statement, the city appeared to confirm that such payments are being sought, but declined to provide details.
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Under state law, the city said in a statement, direct gaming taxes must be used to cover city pension costs. “All other revenue and financial incentives will go toward the city’s general purposes, which fund essential services such as police, fire, streets and sewers, among others. Negotiations are ongoing and (the city) will provide more details as they become available.”
According to industry sources, such advance payment requests are not uncommon nationally. And Lightfoot will likely look good in his presumed re-election bid if he’s believed to have bargained hard and won the best possible deal for a city that could sure use the money.
But while all bidders may eventually comply, albeit reluctantly, the city’s search adds additional complexity to the process as Lightfoot prepares to sell his eventual pick to the City Council and the Illinois Gaming Commission. The decision could be made within weeks. If nothing else, it highlights the stakes of implementing a casino that the city hopes will provide hundreds of millions of dollars to shore up the city’s cash-strapped police force and drain pension funds.
The final three sites — the Tribune Printing House property at Halsted and Chicago, the 78th development at Roosevelt and Clark, and a site that is part of the One Central development in the Metra airspace west of Soldier Field — have all drawn strong local opposition. a series of recent public hearings. Even more unpleasant for the mayor: Some councilors have started to take action against some of these sites.
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In preliminary bids made to the city weeks ago, Bally’s is the only bidder with a preliminary bid of $25 million.
Before a city council committee Monday, city finance director Jenny Huang Bennett confirmed that officials “have asked all bidders to pay upfront and are in the process of negotiating that.”
“We’re working to negotiate a better proposal than what’s in the assessment report,” he added, describing the payments as a “bridge” between what the city needs now and what it will get when a temporary casino opens in 2024. and after a few years it is permanent.
In recent days, Lightfoot has hinted that despite neighborhood opposition, the city must move forward. He asked if the objectors would rather raise property taxes.
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Aldermen, for example, rejected the possibility of taking another look at two decommissioned sites on and near McCormick Place.
Other issues being discussed at the last minute include trade union rights, small investor stakes and the purchase of minority stakes in the planned facilities. Bally’s said it removed a clause that allowed it to buy out minority investors, but did not disclose a replacement clause. QUESTION: When I play dice, I like the Pass line with odds, I roll a 6 and an 8, then I put in the Come line and put odds on each. My question is about the odds. Most casinos offer 10x odds. Should I be maxing this out to get the best house edge and if I just double my pass line bet will it still be in my favor? A significant bankroll is required to increase the odds by 10 times. —Robert S.
Bet on 6 or 8. It’s a cheap bet (only $6) and placing either of these two numbers only gives you a small house edge of 1.5%.
If odds are to be taken, this is a bet that differs from all other craps bets in that the odds do not have a house edge. Although this bet has no house edge, you should use it to support a Pass line bet.
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For example, let’s say you bet $5 on the Pass line, followed by the Point, which becomes $10. On the 10x odds table, you can back your Pass line bet ($5) with $50 ($5 x $10) free multiplier.
So how does the word “free” appear to you? Well, with two dice (six sides) there are six ways to get a seven (one loser) and three ways to win a 10. Your odds of winning are 2:1. But if you win, your Pass line bet will be paid in even money ($5) and your Odds bet will be paid at 2:1 real odds, giving you a $100 prize.
With a 1.4% house edge on the Pass bet, along with 10x free odds, the two bets have a small house edge of 0.18%.
The casino edge on the total bet when combining the odds and the Pass line bet with a 1X multiplier is 0.85%; 2X chance 0.61%; 0.33% at 5X odds, 0.18% at 10X odds. So yes, Robert, double odds are in your favor. The more multipliers you take, the greater the reduction in house edge.
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This brings me to what you said, “To increase the odds tenfold requires a significant bankroll.” Correct again! Taking risk can be an expensive proposition, especially when dealing with multiples of 10X.
$50 for low budget gamblers
