Casino gaming may not have been the boon to city coffers that Chicago leaders envisioned — at least after the first few months of operations at the temporary Bally’s venue. The property opened in September, and so far, the city’s tax revenue projections have been largely off.
According to the Illinois Gaming Board, the property has generated $30 million in revenue since it opened in September. The city receives $3.1 million of that amount in tax revenue, but that is far less than former Mayor Lori Lightfoot’s (D) administration’s projection of $12.8 million — a shortfall of $9.8 million.
City officials noted that the administration “has not budgeted for any tax revenues from the temporary Chicago casino in 2023. Additionally, the City regularly reviews the performance of all revenue sources and adjusts projections, as necessary.”
Coming short, but hopeful
Lightfoot has worked for years to bring a casino within Chicago city limits and her management announced in May that Bally’s had won a bid to buy the property.
The company plans to build a $1.7 billion casino resort at the Freedom Center in the River West area. The casino will offer 3,400 slot machines, 170 table games, a 500-room hotel, a 3,000-seat entertainment venue, six restaurants and more. Construction is expected to begin this year with the property opening in 2026.
However, the temporary casino is located in the Medina Temple building and has only 800 slots, 56 table games and two restaurants. Although located within city limits, the casino faces competition from casinos around the Chicagoland area and across state lines in Indiana.
In early December, Hollywood Casino officially transitioned from operating riverboats to land-based properties. The $350 million Penn Entertainment Casino is located next to the Chicago Premium Outlets and replaces the current Hollywood Casino, which has been located on the Fox River since 1993.
Construction on a new Hollywood Casino in Joliet also recently broke ground, also moving this riverboat operation off the ground in a new $185 million complex. Whether the large amount of casino competition surrounding Chicago has resulted in lower tax revenues has not been stated by city officials.
Despite the missing forecast, Mayor Brandon Johnson’s (D) administration remains hopeful that things will change. December saw Bally’s attract 100,000 visitors, the highest casino attendance in the state. This produced the highest monthly revenue total to date for Bally’s, totaling $8.5 million in revenue, with $864,645 going to city taxes.
“We have added free parking, new promotions and expanded hours to meet customer expectations,” said Vice President and General Manager Mark Wong. “Our guests have responded positively.”
The casino has also made some other headlines in recent weeks. News broke in December that the casino’s bidding process was facing city and federal investigations regarding the casino’s alleged financing and potential conflicts of interest.
