Chicago’s formidable try and ease its monetary struggles by way of a on line casino has not yielded the anticipated outcomes, in accordance with a current Metropolis Council report. The momentary on line casino at River North’s Medinah Temple, which opened in September 2023, has considerably underperformed, with solely $63.2 million in new tax income generated previously 16 months. Chief Monetary Officer Jill Jaworski introduced these figures throughout a listening to of the Metropolis Council’s Contracting and Oversight Fairness Committee on Friday, Jan. 10, revealing a pointy distinction to the town’s preliminary monetary expectations.
Efficiency falls in need of projections:
In keeping with WTTW Information, though the momentary on line casino’s earnings seems modest, a considerable portion of the income—almost 70%—comes from flat charges paid by Bally’s, amounting to $44 million over 2023 and 2024. This association was a part of a broader deal permitted in December 2022 that concluded a three-decade-long effort to carry on line casino playing to the “Windy Metropolis.” Nonetheless, the earnings from the on line casino’s precise gaming operations have fallen far in need of the town’s projections.
In 2023, tax income from the on line casino represented simply 25% of the quantity initially anticipated by the town, whereas in 2024, the on line casino’s contribution was nonetheless solely 47% of the anticipated complete. These figures spotlight the challenges the town faces because it makes an attempt to stability its funds, notably the monetary pressure on the police and fireplace pension funds. Regardless of these setbacks, metropolis officers stay optimistic concerning the future, putting their hopes on the everlasting on line casino slated for River West, which is ready to open in 2026.
Jaworski identified that the restricted facilities on the Medinah Temple location are a significant hindrance to the on line casino’s efficiency. The dearth of parking and different important providers have made it troublesome to maintain lengthy visits from patrons, which in flip limits gaming income. “For a on line casino to actually thrive, you want the entire different facilities that folks count on,” Jaworski mentioned, noting that the momentary setup couldn’t meet these wants, as reported by the Chicago Solar Instances. Moreover, within the first 12 months of operation, the Medinah on line casino struggled with general foot visitors and gaming revenues per admission, failing to achieve key targets by 20% to 35%.
Whereas the momentary on line casino’s efficiency has been disappointing, Jaworski emphasised that the total potential of the undertaking can solely be realized with the completion of the everlasting facility. The upcoming $1.7 billion on line casino and leisure complicated in River West guarantees a a lot bigger scale of operations, that includes 4,000 gaming positions, a 500-room lodge, and greater than 3,000 parking areas, amongst different facilities. In keeping with Jaworski, this expanded facility is predicted to generate tons of of hundreds of thousands of {dollars}, which is able to instantly assist the town’s pension funds for police and fireplace providers. The brand new on line casino can also be anticipated to create hundreds of jobs and appeal to vacationers, doubtlessly boosting Chicago’s economic system.
Confidence within the everlasting facility:
Regardless of the struggles of the momentary on line casino, metropolis officers stay assured concerning the long-term prospects. Jaworski famous that Bally’s has met a number of of its hiring objectives, with greater than 600 everlasting jobs created, 82% of that are crammed by minority candidates, and 45% by ladies. Moreover, whereas the on line casino has been profitable in sure areas, it faces vital issues from metropolis leaders relating to minority contracting and labor participation from economically distressed communities. These points will should be addressed because the undertaking strikes ahead.
Whereas Bally’s has secured financing for the everlasting on line casino, it faces one other hurdle: the demolition of the previous Chicago Tribune printing plant. Jaworski confirmed that demolition work must be accomplished by subsequent month, permitting development to start in earnest. Bally’s is required to open the everlasting on line casino by September 2026, as stipulated by state legislation.
Regardless of these challenges, metropolis officers stay hopeful that the full-scale undertaking will present the monetary increase the town desperately wants. With a lot bigger services and a broader vary of points of interest, the River West on line casino is poised to change into a key financial driver. Nonetheless, state income forecasters have raised issues concerning the saturation of Illinois’ playing market, suggesting that it might be more durable to draw gamblers to a brand new facility in downtown Chicago.
