- Betting at Wrigley Field and United Center could harm tax revenues for new Chicago casino.
- Neil Bluhm’s Rush Street Gaming has two proposals on the table for a gaming venue.
- Revenues could potentially drop by over 50% if the sports areas offer betting services.
A casino is coming to Chicago, but who will operate it is anyone’s guess. A total of three companies have introduced proposals to be chosen as the license holder and these bids are now under review by city officials. At the same time, there is consideration being given to allow the United Center and Wrigley Field to offer sports betting as well. This is a big no-no according to billionaire casino operator Neil Bluhm.
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Bluhm is connected to Rush Street Gaming and has submitted two proposals for the Chicago casino license. During a recent hearing, Bluhm spoke with a city alderman, stating that if the stadiums provide sports betting that it would harm the revenues generated from the new casino.
Stalling the Professional Sports Betting Ordinance
For many months now, the groups vying for the new casino license have worked to try and stall a city ordinance that will allow professional sports betting teams to establish services within their home arenas or somewhere close by.
Bluhm recently brought his disagreement with the ordinance to the zoning and licensing committees of Chicago. He argues that allowing the stadiums to set up sportsbooks will cut into the future profits earned by the casino. It would also decrease the amount the city will be paid.
According to Bluhm, the sports betting revenues for the casino will decrease from around $40 million a year to $13 million. It seems that opponents to the ordinance also feel that slots and table games will be negatively affected, with a decrease of over $60 million each year due to a lower number of visitors.
If this were to occur, then the city would lose around $12 million in tax revenues. Opponents seem to think that if sportsbooks are offered at the stadiums, then players will skip out on the casino and go to the other venues instead.
Bluhm was frank in his dismissal of the ordinance, stating that its common sense that Wrigley Field and United Center are perfect options for sports betting. It will attract customers and take away from the traffic that would visit the new casino and spend cash on bets as well as additional gambling.
The Proponents Want to Take Advantage of the Built-in Audience
Those in favor of the audience want to take advantage of the sports fans of Chicago and offer services they can access during games. Ordinance sponsor Alderman Walter Burnett stated that the city would benefit as well as nearby bars, restaurants, and businesses.
The professional sports teams of the city are in favor of the plan and want to be able to take advantage of the service option. The Chicago Cubs have already teamed up with DraftKings for Wrigley Field, which would create prime betting options for fans.
For now, it is unclear as to if the sportsbook ordinance will be approved. If it is, the city could earn $2.5 million up front through taxes and licensing fees.
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