Summary:
- Bally’s temporary casino contributed just $3 million to the city in four months
- Bally’s executives and current Mayor Brandon Johnson remain optimistic the casino will achieve better results
- Civic Action says gaming revenue can be unreliable in the long run
Bally’s failed to meet expectations during its first few months of operations in Chicago, as revenue generated by its temporary casino at Medinah Temple fell way short of former Mayor Lori Lightfoot’s estimate.
But the initial performance is not always indicative of future results, and current Mayor Brandon Johnson chooses to look on the bright side as he highlights Bally’s “positive revenue numbers” as 2023 closed.
Bally’s Only Generated $3M for Chicago in 2023
In May 2022, Bally’s obtained Lightfoot’s approval to operate Chicago’s first casino, beating out rivals Hard Rock International and Rush Street Gaming. In September last year, the company opened a temporary casino at Medinah Temple, as construction of the permanent casino continues at Chicago Tribune’s Freedom Center printing plant in River West.
Lightfoot projected that the city would get $12.8 million in casino revenue, to be allocated for police and firefighter pension funds. That was not achieved as Bally’s only profited $30.4 million from its temporary casino at Medinah Temple during its first four months of operations, and just $3.1 million of that would go to the city, much lower than expected.
But it won’t be all doom and gloom, with Bally’s executives aiming to build on the casino’s revenue figures in December which reached a record $8.5 million, with around $865,000 of that going to the city, according to the Illinois Gaming Board.
To further boost the numbers, the company is offering free parking and new promotions, with the casino also expanding its operating hours to meet customers’ expectations, said Bally’s Chicago general manager Mark Wong.
Mayor Johnson remains confident Bally’s Chicago will bring huge economic contributions, generate more jobs, and improve the overall business environment in Chicago, Illinois. December’s results are a “positive sign” for both the casino and the city, he added.
Casino Revenue “Unreliable”, Finance Think Tank Says
Like his predecessor, Johnson is also betting big on Bally’s, setting a casino revenue target of $35 million for the city for 2024, higher than Lightfoot’s $34.4 million. Whether that can be realized remains to be seen.
Local government finance think tank Civic Federation has warned against providing overestimates, saying casino revenue can be “unreliable” particularly over the long run. The group is calling on the city government to develop contingency plans in this area.
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