Chicago’s temporary Bally’s casino may not be living up to city leaders’ financial estimates for the property. Former mayor Lori Lightfoot’s (D) administration projected the Medinah Temple casino would bring in $12.8 million in tax money in 2023, but the actual numbers have fallen well short of that.
The casino, located in the River North area, generated just $3.1 million in tax revenue since opening in September 2023. There may at least be a small silver lining with the numbers. Bally’s brought in $8.5 million in gross revenue in December with $864,645 going to city coffers.
This was the casino’s highest-grossing month, according to the Illinois Gaming Board, and the casino saw 100,000 guests. Bally’s pointed to some changes at the property meant to bring in more guests.
“We’ve added free parking, new promotions and expanded hours to meet customers’ expectations,” Vice President and general manager Mark Wong said. “Our guests have responded positively. In December, we saw our highest attendance and revenues to date.”
Revenue Struggles, Investigations Continue
The temporary facility is the first casino within the city and boasts 800 slot machines and 56 table games as well as two restaurants. Lightfoot had long sought to bring a casino to the city, but recent revenue numbers fall well short of what city officials hoped to bring in from the venue.
Despite that, Mayor Brandon Johnson (D) said December’s increases were a good sign and that taxes collected from the property could play a key role in the city’s future.
“Economic contributions from such establishments play a crucial role in boosting the local economy, creating job opportunities, and enhancing the overall business environment,” he said.
Plans call for Bally’s to construct a permanent $1.7 billion casino at Freedom Center in the River West area near the Chicago River. The casino will include 3,400 slot machines, 170 table games, a 500-room hotel, a 3,000-seat entertainment venue, six restaurants, food court, and more. Construction is expected to begin this year and be completed by 2026.
Revenue numbers haven’t been the only concern about the project. In December, details emerged about investigations involving the bidding process for the casino. That has included probes by the U.S. Attorney’s Office and City Inspector General Deborah Witzburg.
Critics have charged that the process wasn’t fully transparent and that some city consultants had conflict of interests in the matter. According to reports, investigators are looking into potential improprieties.
“Bally’s faced controversy earlier when it was allowed to alter the terms of its financial deal with minority investors after inserting a clause that could buy out minority shares at a non-negotiated price post-casino opening,” Crain’s noted. “Reports also revealed discrepancies in the fees charged to different bidders and conflicts of interest with city consultants evaluating financial prospects.”
Lightfoot’s team has denied these allegations and Deputy Mayor Samir Mayekar told Crain’s that “some casino industry actors and their allies who lost out on the bid who have spent the following years planting false rumors and innuendo in the media.”
