License Pending For Bally’s Massive Chicago Casino

Bally’s is getting closer to potentially establishing a casino in the River West district of Chicago, Illinois.

“Bally’s” is listed as a “pending license” on the Illinois Gaming Board’s website.

Chicago city has given the green light to Bally’s $1.7 billion casino project, marking the latest advancement towards its completion. Currently, Illinois is home to 11 casinos, with an additional five being built, including the Bally’s project in Chicago.

The massive downtown casino project is projected to open in 2025, according to the latest estimates.

Meanwhile, Bally’s is planning to establish a temporary casino at Medinah Temple in the vicinity, which could potentially open by 2023.

Chicago casino could deliver $400 million in revenue yearly

According to a Casino Recommendation Report prepared by the City of Chicago on May 5:

It’s estimated that a casino based in Chicago will generate about $400 million in tax revenues each year for both the City and the State of Illinois. Over time, the City is expected to receive a yearly share of about $200 million.

The revenue projections being referred to encompass non-gaming revenues such as:

• Sales
• Hotels
• Restaurants
• Revenues from income and property taxes for Chicago
• Annual property tax revenues for various taxing bodies, which include between $11 million and $19 million for Chicago Public Schools.
• The state’s share of casino revenue will go to The Rebuild Illinois Capital Plan.

However, not everyone is convinced that a casino in downtown Chicago will be highly profitable.

During the casino committee’s meeting, Ald. Brendan Reilly was among three members who voted against moving forward with the project. Reilly suggested that the city needs more time to assess such a large-scale project due to its considerable financial impact.

Reilly specifically questioned the revenue projections for Bally’s casino, which the City Council approved without much examination.

The casino is required to produce approximately $550,000 in daily taxes, equating to a daily income of $1.4 million throughout the year. This projection doesn’t take into account potential disruptions such as inclement weather, unrest, criminal activity, or the typically slow months of January and February in Chicago. If each customer bets $3,000 daily, a highly unlikely scenario, the casino would need to attract 9,300 customers each day. Considering the number of positions available in the casino, this is improbable.

A project so big Wall Street is concerned

Concerns also exist on Wall Street regarding the massive task of constructing a casino in downtown Chicago.

Historically, Bally’s has primarily acquired existing gaming properties instead of constructing a large casino from the ground up. However, for this project, Bally’s is incurring a substantial amount of debt.

Wall Street investors are concerned about the impact of a $1.7 billion project on the company’s financial stability.

Fitch Ratings and S&P have downgraded their outlook on Bally’s issued debt to negative. However, if the project proves successful, it could significantly benefit both Bally’s and the citizens of Illinois.