Hard Rock Rockford Delivers New Tax Revenue, but Also Competition

Posted on: October 1, 2024, 12:35h. 

Last updated on: October 1, 2024, 01:07h.

Devin O'Connor @CasinoorgDevinO Read More
Expertise: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics.

Hard Rock Casino Rockford in Illinois opened in late August with 1,300 slot machines, 50 live dealer table games, a Hard Rock Bet Sportsbook, and a dedicated poker room.

Hard Rock Rockford concerts Illinois
Hard Rock Casino Rockford is poaching some live events from the city’s downtown concert venues. The casino is expected to generate more than $7 million a year in local taxes for the Northern Illinois city. (Image: WREX)

The casino managed by Hard Rock International, a fully owned subsidiary of the Seminole Tribe of Florida, says it’s off to a strong start. The City of Rockford expects to see a local allocation of $7 million during the casino’s first 12 months in operation.

City officials have proposed earmarking the casino tax money for college scholarships for deserving graduates of the Rockford Public School District, increased contributions to the city’s police and fire departments, and allocations for at-risk neighborhoods. The Rockford City Council is scheduled to vote on the funding disbursements in the coming weeks.

A growing concern, however, is how the Hard Rock Casino, which features a 23,000-square-foot concert venue with accommodation for up to 2,000 guests, will impact the city-owned Coronado Theatre and BMO Center.

Casino Competition 

The Rockford Area Venues & Entertainment Authority (RAVE) owns and operates the 2,300-seat Coronado, dubbed the Crown Jewel of Rockford, as well as the multipurpose BMO Arena that can be configured to accommodate nearly 6,000 patrons for concerts.

RAVE disclosed this year that it put on 156 events during its 2024 fiscal year that ended June 30 and generated revenue of $4.4 million. The city agency delivered the local government a $359K operating surplus.

With Hard Rock opening and the casino poaching concerts and events like standup comedy from its two venues, RAVE projects it will lose $730K in revenue during its 2025 fiscal year and incur an estimated operating loss of $318K.

RAVE officials told the city council this week that the Coronado is losing about half of the shows it would typically book to Hard Rock. However, larger shows like the ones earlier this year for A-list comedians Shane Gillis and Nate Bargatze, which respectively played at the BMO Center in February and May 2024, will likely remain at the RAVE arena because those audiences numbered more than 5,000 per show.

Hard Rock Casino Rockford President Geno Iafrate told WIFR that Hard Rock is in the business of “working with the BMO and Coronado to solidify Rockford as an entertainment destination.”

Hotel Partner

Though Hard Rock might steal some live events from the city’s entertainment venues, the company’s decision not to include a hotel at its casino is a win for nearby lodging.

Instead of investing in an on-site hotel, Hard Rock Rockford has partnerships in place with the Radisson, Hilton Garden Inn, Marriott Courtyard, and Hampton. Each hotel is less than a half-mile from the casino.

The physical real estate of Hard Rock Casino Rockford is owned by Gaming & Leisure Properties, a real estate investment trust controlled by Penn Entertainment. In August 2023, the REIT acquired the property from 815 Entertainment, a group of local investors that additionally included the Seminole Tribe and Cheap Trick guitar legend and Illinois native Rick Nielsen, for $100 million.

815 Entertainment and the Seminoles entered into a 99-year lease agreement with an initial rent of $8 million. The lease price increases by 2% per year. 815 and the Seminoles retain the casino’s operating profits.