Barrie reportedly faces multiple investigations related to the Chicago casino, including one from federal authorities
Bally's efforts to open a casino hotel in Chicago - the first such venue in the city - could be derailed by multiple investigations, possibly including one by the U.S. Attorney's Office into the company's process for winning a bidding war.
Crane's Chicago Business reports that the U.S. Attorney's Office is reviewing complaints from other gambling operators that lost out in the Chicago casino competition. The federal agency did not confirm the request to the media, but Ald. Brian Hopkins (D-Ward 2) said the investigation is ongoing. Hopkins has previously been an outspoken critic of how former Mayor Lori Lightfoot (D-Chicago) handled the casino bid. Earlier this month, the city council said the $1.7 billion project was now in jeopardy.
Unidentified sources told Crain's that Chicago Inspector General Deborah Wittsburg is also investigating the matter. Her office's policy is not to comment on possible investigations. A spokesperson for Bally's told Crain's that the area casino operator is not aware of any investigation, but there has been speculation that federal and local investigations have been ongoing for months.
The Rhode Island-based gaming company has been operating a temporary casino at Temple Medina in Chicago's River North neighborhood for more than two months. The goal is to open a permanent casino-hotel at Liberty Center, a 30-acre riverfront property occupied by Tribune Publishing.
Opponents who may be angry at Bally's Chicago Casino
Lightfoot selected Bally's in May 2022 over Hard Rock International, the gaming company of Florida's Seminole Tribe, and Chicago-based Rush Street Gaming for a Chicago casino license.
Although the Windy City is the third largest city in the United States, only four operators have submitted proposals to compete, and the process has failed to attract major Las Vegas gaming companies such as MGM Resorts International and Wynn Resorts , because of the high tax rates set by the state of Illinois and the city for race locations.
It's unclear who was more disappointed between Hard Rock and Rush Street when Bally's was crowned champion in Chicago, but reports suggest that Rush Street charged twice as much as Bally to get bids for various potential Submit casino locations.
Additionally, in light of Chicago's notorious history of political corruption, it is believed that a city consultant who was investigating the bidder's finances was raising money for Bally's and did not disclose this to aldermen before the vote. The gaming company had $3.44 billion in debt at the end of the third quarter, well above its current market capitalization of $525.57 million.
"Worst decision"
Hopkins previously called Lightfoot's selection of Barrie one of her worst decisions, which is saying something considering she was ousted after just one term and her approval ratings were low.
He was one of seven City Council members who voted against Barley's selection. The gambling company has drawn the ire of Chicago policymakers in other ways. For example, Ald. Brendan Reilly (D-42nd District) criticized an October 2022 transportation study Bally conducted for the Medinah Temple Casino, claiming that 40% of visitors to the temporary casino would bike, walk, or use public transportation tool.
In what may add to the simmering controversy, the city allowed Bally's to change the terms of an agreement with minority shareholders that would have allowed the gaming company to acquire those shareholders' shares from the Chicago project at a non-negotiable price Clines.
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Source: www.casino.org
