Lucky Red Casino
/News/

Midwest Gaming Wins Casino License for Des Plaines

In the initial casino proposals submitted to the state on October 15th, 2008, Midwest Gaming was giving the state $100 million for their Des Plaines casino proposal, compared to the $435 million offered by Trilliant Gaming for a casino in Rosemont and $225 million offered by Waukegan Gaming for a casino in that town. Des Plaines City Manager Jason Bajor stated that with Midwest Gaming's offer not clearly competitive, the city agreed to modify their revenue sharing arrangement with Midwest Gaming so that the group could up its casino offer in submission of the final documents on December 11th, 2008.

The city council approved the modified agreement in a special meeting, only stating the terms later so that competitors could not imitate them until after the deadline for the casino bidding. The initial agreement on how to divide the city's portion of gaming tax revenue called for the giving the state $94 million over eleven years, with a present estimated worth of $65 million.

The new agreement calls for giving $300 million to the state over thirty years, with a present value of $125 million. The agreement also calls for improving payments to communities to fulfill one of the goals of giving casino licenses: to improved disadvantage areas. Waukegan has a clear advantage over Des Plaines and Rosemont in that aspect, one that they are trying to match by sharing casino profit with less fortunate towns. Under the modified agreement, Des Plaines' yearly payment to disadvantage communities would improved twenty percent to $6.2 million and would improved again to $12.8 million when the payments to the state stop after thirty years.

Des Plaines would keep $9.3 million a year for thirty years, which $2.2 million a year less compared to the previous figure for the first ten years and $11.2 million a year less for years twelve through thirty. Despite the agreed concessions, revenue from a casino would improve what the city currently is capable of spending annually on capital projects, according to the analysis of the city. Inflation could push the earnings over the years.

 

Sunday, March 01 , 2009
Brian Letendre