What’s the Tax Structure for the Chicago Casino?

Since the project’s inception, the city and the state have planned to tax the casino’s revenue aggressively. A Union Gaming Analytics study performed in August 2019 ascertained that a downtown Chicago casino could produce billions of dollars of revenue. However, it also determined that such a facility would not profit, given the original tax structure.

Like with many other casinos, revenue would face a graduated tax. The actual rates and thresholds made it so that the casino would have effectively paid 72% of its aggregate gross revenue to the city and state. With only 28% of what it took in after comps and other tax rebates left to cover its expenses, having something to show for the business’ operation would have proven extremely difficult. For that reason, IL lawmakers worked to adjust the tiers in late May.

The amendment to the Illinois gambling law did not drop the rates for a Chicago casino. It did, however, raise the tiers for each graduated rate significantly. For example, instead of paying a top rate of 74.7% on monthly slot revenue over $200 million, that rate now only applies to slot revenue of more than $1 billion in a month.

Here is the table for slot taxes:

The tax tiers for table games also increased with the latest legal wrangling. Again, the aim was to reduce the overall liability without dropping the rates themselves.

Chicago Casino Project History

Here’s a timeline of events on the Chicago casino project:

• February 2023: The Illinois Gaming Board approves supplier licenses for both the owner of the land and the Medinah Temple that will play host to the temporary Bally’s casino.
• Dec. 14, 2022: Chicago City Council grants zoning approval for Bally’s Chicago in River West. Bally’s still requires approval from the Illinois Gaming Board.
• Nov. 21, 2022: Bally’s closed on a $200 million deal this month to purchase the Freedom Center printing plant site from Nexstar Media Group. The facility, which currently prints the Chicago Tribune, will be the site of the permanent casino.
• Oct. 17, 2022: Bally’s signs a deal with organized labor to build the casino.
• Sept. 12, 2022: Bally’s applies for an Illinois sportsbook license.
• Sept. 9, 2022: Chicago mayor Lori Lightfoot announced the formation of a council that aims to gather community input regarding the construction of Bally’s casino, which plans to open a temporary casino in River North before the permanent location opens in River West.
• May 5, 2022: Lori Lightfoot chooses the winning casino bidder for the city of Chicago.
• April 5, 2022: There will be three community meetings this week to discuss each proposed Chicago casino location.
• March 22, 2022: Chicago eliminates two of the five casino proposals. Bally’s Tribune, Hard Rock and Rivers 78 remain.
• 2021: Chicago set a request for proposals deadline for Aug. 23. Chicago began to hear negative feedback from casino operators and extended the deadline to Oct. 29. Five bids finally rolled in at the deadline and were presented to the public in December 2021.
• 2020: In May, Amendment 5 became law and revised the Chicago casino’s tax code. The city puts out an RFI for a downtown casino site.
• 2019: In June, Pritzker signed the bill authorizing a Chicago casino. In August, Union Gaming Analytics released its study, specified five specific locations, and deemed the tax structure untenable. In November, Bob Rita introduced the first amendment to adjust the tax code for the Chicago casino.

Illinois Casinos Near You

The Prairie State boasts 12 casinos. One of them is sure to be within a short driving distance. The following casinos operate in Illinois:

American Place Casino Waukegan

The Temporary by Full House Resorts, opened in February 2023 in Waukegan. The Temporary features some 1,000 slot machines, 50 table games and three restaurants. Full House Resorts has partnered with Circa Sportsbook to offer a sports betting facility, but that won’t open until later in 2023. When it does, Circa Sportsbook will also launch online. It will become the eighth Illinois sportsbook. The permanent American Place casino is expected to open in 2025.

• Temporary Casino: Yes, opened Feb. 17, 2023
• Address: 4011 Fountain Square Place Waukegan, IL 60085
• Telephone: 773-477-9515
• Email: [email protected]
• Permanent site projected opening: 2025
• Cost: $375 million

Argosy Casino Alton

Argosy Casino opened in 1991 on a small riverboat called the Alton Belle. Two years later, the larger Alton Belle II replaced its predecessor, substantially increasing the gaming positions in the boat. The casino remains on the same boat today. However, it no longer cruises as the state changed the law in 1999 to allow casino boats to stay permanently moored. While this casino doesn’t offer lodging, it does feature more than 800 slot machines and 12 gaming tables. In addition, gamblers can wager on sporting events at the self-branded retail book on board.

• Address: 1 Piasa St., Alton, IL 62002
• Telephone: 618-474-7500

Bally’s Quad Cities Casino & Hotel

Bally’s Corporation officially assumed ownership of Jumer’s in 2021 to be Bally’s Quad Cities Casino & Hotel. Representing the Illinois half of the Quad Cities, Jumer’s started as a riverboat in 1991. On-site, you’ll find a 205-room hotel, four restaurants, a poker room, a competitive offering of 25 gaming tables and over 850 slot machines. Because of its position on the Mississippi River, this casino pulls in many guests from neighboring Iowa.

• Address: 777 Ballys Blvd., Rock Island, IL 61201
• Telephone: 309-756-4600

DraftKings at Casino Queen

DraftKings at Casino Queen opened in June 1993 on a boat called the White Star One. In 2007, the operations moved inland. At the same time, gaming operations significantly expanded. In 2020, DraftKings Sportsbook partnered with the casino’s management to integrate its brand into the property’s name. The companies did so to satisfy the state’s co-branding rules for online sports betting. Today, you can find a hotel, an RV park, over 1,000 slots, 30 gaming tables and a massive retail sportsbook on the property. The complex also includes several dining options.

• Address: 200 S. Front St., East St. Louis, IL 62201
• Telephone: 618-874-5000

Grand Victoria Casino

Since October 1994,Grand Victoria Casino has provided casino gaming to residents of Chicago’s far northwest suburbs. The property is now one of Caesars’ many holdings throughout the country. The retail sportsbook was one of the first to open in 2020. Besides that, the casino offers several dining options, event space, over 1,100 slot machines and 36 gaming tables. Although the casino offers no lodging for guests, it does have a VIP area for its most frequent patrons.

• Address: 250 S. Grove Ave., Elgin, IL 60120
• Telephone: 847-468-7000

Hard Rock Rockford Casino (temporary)

The permanent Hard Rock casino is in the process of being built, but a temporary casino is available in Rockford at the site of the old Giovanni’s restaurant and convention center.

The temporary casino will have 736 slot machines and two restaurants. It should be open for another one to two years.

• Address: 610 N. Bell School Road, Rockford, IL 61107
• Telephone: (779) 269-9010

Harrah’s Casino Joliet

Harrah’s Casino Joliet has come a long way since its beginnings on the Northern Star boat in May 1993. The gaming floor now rests on two barges that boast over 50,000 square feet. Taking up that space is 31 gaming tables, over 600 slot machines and dining options. There is also a 200-room hotel adjacent to the Des Plaines River where the barges lay. The Harrah’s poker room is closed permantely.

• Address: 151 N. Joliet St., Joliet, IL 60432
• Telephone: 815-740-7800

Harrah’s Metropolis Casino

If you’re looking for entertainment along the Ohio River, this property might be your best bet. The 800 slot machines, 20 gaming tables, five restaurants, event space and a 258-room hotel await you at Harrah’s Metropolis Casino. This Caesars property has been open since 1994 when investment by Merv Griffin fueled the creation of what was then called Players Island. The moored boat also offers a steakhouse to fuel your gameplay.

• Address: 100 E. Front St., Metropolis, IL 62960
• Telephone: 618-524-2628

Hollywood Casino Aurora

Hollywood Casino Aurora was once the first-ever casino boat for the Hollywood corporation, but it’s now a Penn National Gaming holding. With continuous operation since 1993, it’s also one of the oldest properties in IL.

The boat moored along the Fox River boasts 26 gaming tables and over 1,100 slot machines on over 53,000 square feet of the gaming floor. There is no adjacent lodging, but the boat features three restaurants.

Penn is now in the process of moving the Aurora casino to a new land-based facility. Construction is expected to begin in 2023.

• Address: 1 W. New York St., Aurora, IL 60506
• Telephone: 630-801-7000

Hollywood Casino Joliet

Hollywood Casino Joliet was once known as the Empress Casino, starting operation in 1992. Since Penn National acquired the Hollywood brand in 2005, it did a major renovation that the company completed in 2009. Onboard the boat, you’ll find a retail sportsbook, five restaurants, 18 gaming tables and more than 1,100 slot machines. There is a 100-room hotel adjacent to the boat as well.

Penn is now in the process of moving the Joliet casino to a new land-based facility. Construction is expected to begin in 2023.

• Address: 777 Hollywood Blvd., Joliet, IL 60436
• Telephone: 815-744-9400

Par-A-Dice Casino

Located in the middle of the state, Par-A-Dice Casino is a casino boat docked on Peoria Lake. There’s something for everyone: a hotel, several restaurants, a retail sportsbook, 25 gaming tables and over 800 slot machines.

• Address: 21 Blackjack Blvd., East Peoria, IL 61611
• Telephone: 309-698-7711

Rivers Casino

The closest casino to Chicago proper enjoys its position just minutes away from O’Hare International Airport. In March and April 2020, its proprietary sportsbook brand BetRivers became the state’s first legal retail and online sportsbook. Rivers Casino is the youngest casino in IL, as it opened its doors in July 2011. It has all the trappings with six dining options, 65 gaming tables and over 1,000 slot machines. The casino does not have lodging, however.

• Address: 3000 S. River Road, Des Plaines, IL 60018
• Telephone: 847-795-0777

Illinois Casinos on the Way