The City of Chicago's foray into the casino business has seen a less than auspicious start with Bally's temporary casino at Medinah Temple failing to hit financial forecasts. According to a report by the WTTW News, the temporary casino, operational for 16 months, has generated just $63.2 million in new tax revenue for the city, falling short of the projections that were part of the city's budget planning. The bulk of these revenues, 70%, come from flat fees paid by Bally’s, rather than from the expected casino operations.
Despite the lukewarm performance, City Hall remains confident in the windfall the full-scale River West casino promises. Chief Financial Officer Jill Jaworski, speaking to the City Council's Contracting and Oversight Equity Committee, told the Chicago Sun-Times that "For a casino to really thrive, you need all of the other amenities." Indicating that Bally's can only truly be assessed once complete with its slated 4,000 gaming positions, a 500-room hotel, and a full suite of amenities to attract and retain gamblers.
The Medinah location's performance fell short of expectations, bringing in less than half of the jackpot the city had hoped to aid police and fire pension funds. With just $16 million in gaming tax revenue last year, it was a shortfall from the budget's anticipated $35 million. However, even with this shortfall, according to Sun-Times reporting, Bally’s was the third-highest-grossing casino of 16 in Illinois last year.
Jaworski remains hopeful, telling the Sun-Times, "We’re expecting the permanent casino to generate hundreds of millions of dollars to support our police and fire pensions." Despite these issues facing the temporary operation, Bally's has achieved success in employee diversity surpassing hiring goals, with the majority of positions filled by minority candidates.
Concerns were raised by Alderpersons regarding contractual obligations, particularly in the areas of minority contracting and community labor hours. With the permanent casino set to open in 2026, officials hope that it will strengthen city finances by funneling approximately $200 million into essential pension funds and creating jobs to boost the local economy, as reported by WTTW News. Yet, there is skepticism from state revenue forecasters about the potential performance of the permanent casino in an already crowded Illinois gambling market.
