Bally’s Chicago casino falls well short of budget projections in first four months
Mayor Brandon Johnson shakes hands with Soo Kim, chairman of the board of directors at Bally’s Corporation, during a ribbon-cutting ceremony at Bally’s Casino Chicago at Medinah Temple in River West, Tuesday morning, Oct. 3, 2023.
Ashlee Rezin/Sun-Times
Bally’s hit the “under” on former Mayor Lori Lightfoot’s revenue estimate for the opening months of the city’s first casino — and Chicago gamblers will need to start losing a lot more for Mayor Brandon Johnson to hit the “over” on his office’s 2024 budget card.
Bally’s temporary casino at Medinah Temple turned a profit of nearly $30.4 million from its opening in mid-September through the end of December, with about $3.1 million of that going to the city, according to Illinois Gaming Board records released this week.
That’s less than a quarter of the $12.8 million in casino revenue Lightfoot’s budget team was betting on before she was voted out of office last spring. The city’s cut of casino cash is earmarked for its nearly insolvent police and firefighter pension funds.
Still, Bally’s paid the city an upfront $40 million fee as part of the deal that helped the Rhode Island-based corporation beat out two other bidders for Lightfoot’s casino nod in 2022.
Their temporary casino opened about three months later than Lightfoot initially aimed for thanks to a series of state regulatory hurdles that, until recent weeks, had also delayed marketing efforts and limited hours of operation.
Mayor Lori Lightfoot chats with Soo Kim, chairman of the board of directors at Bally’s Corporation, and Ald. Walter Burnett (27th) after announcing Bally’s as her pick to run Chicago’s casino at the River West site of the Tribune printing plant, during a news conference at the headquarters of the Mid-America Carpenters Regional Council, Thursday morning, May 5, 2022.
Ashlee Rezin/Sun-Times
Bally’s executives have pointed to those factors in the lackluster early returns from the River North casino, which now operates 24/7 and is expected to take bets through September 2026 while the corporation builds a permanent site at Chicago Avenue and Halsted Street.
“Bally’s continues to build its relationship with Chicago gaming customers by offering our guests new and convenient ways to visit the property,” Bally’s Chicago general manager Mark Wong said in a statement. “We’ve added free parking, new promotions, and expanded hours to meet customers’ expectations. In December we saw our highest attendance and revenues to date.”
Gamblers made nearly 100,000 trips through the turnstiles at 600 N. Wabash Ave. in December, when the casino made about $8.5 million and churned out about $865,000 in city revenue, gaming board records show.
Over its first four months, the Chicago casino is already the second-most visited casino of all 15 in the state, trailing only Rivers Casino in Des Plaines, which continues to dwarf the competition. Rivers pulled in $45.4 million off 279,000-plus admissions in December.
Bally’s will have to get a lot closer to those numbers to meet expectations laid out by Johnson in his first budget, which is banking on $35 million from the casino for the public safety pension funds. That’s even higher than Lightfoot predicted for 2024 ($34.4 million).
Bally’s made about $26,779 for the city per day in its opening months. That rate will have to more than triple for it to meet Johnson’s 2024 budget figure.
“We are pleased that Bally’s Chicago Casino has experienced positive revenue numbers at its temporary facility by the end of 2023,” Johnson said in a statement provided by Bally’s. “The revenue growth is a positive sign for both the casino and the city of Chicago. Economic contributions from such establishments play a crucial role in boosting the local economy, creating job opportunities, and enhancing the overall business environment.”
In its annual budget review, the Civic Federation, a local government finance think tank, warned that “potential revenue from the Chicago casino will not be a stable source,” pointing to dwindling casino revenue numbers statewide over the past decade.
“While a casino may generate some budgetary relief, gaming revenues can be unreliable, particularly over the long run, and should be budgeted with caution,” researchers wrote. “Therefore, the Civic Federation cautions that the City will need to develop contingency plans to supplement unreliable casino revenue when planning for future pension contributions.”
Ald. Walter Burnett (27th) and Medinah Temple landlord Albert Friedman applaud during a ribbon-cutting ceremony at Bally’s Casino Chicago at the River West temple, Tuesday morning, Oct. 3, 2023.
Ashlee Rezin/Sun-Times
So far, Bally’s landlord at Medinah Temple has made more money off the temporary casino than city pension funds have.
The corporation has paid prolific River North developer Albert Friedman more than $3.8 million in monthly rent payments since their lease began in December 2022, according to a copy of the agreement obtained by the Sun-Times.
Bally’s is also on the hook for property taxes on the historic landmark, plus thousands more in management fees.
Bally’s chairman Soo Kim previously said they wanted to build the temporary site adjacent to the permanent one in River West, but days before their selection was announced, they went with Medinah at the urging of Lightfoot’s office.
Friedman previously leased office space for Lightfoot’s campaign, as he did for the campaigns of Johnson and former Mayor Rahm Emanuel.
Representatives for Lightfoot have said she had “no involvement” in the Medinah Temple selection.
Construction on the permanent casino is expected to start this summer.