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Bally’s Chicago fell short of its gaming tax revenue targets last year, but the city believes the problems are specific to the temporary location at Medinah Temple. Better amenities and on-site parking may mean stronger performance for the permanent resort, expected to open in 2026.
The new City Council report shows that the casino has generated a mere $63.2 million in new tax revenue since opening in September 2023, a far cry from the $135 million the city was banking on. To put it clearly, that is less than half of what was expected.
Not only did it fail to meet its tax revenue targets, but it is also struggling to attract and retain visitors. Mayor Brandon Johnson cited limited amenities at the temporary location for this setback.
This is definitely a viable cause because the first three weeks of opening the facility had a large number of 80,000 guests. That made it the second busiest casino in the state at that time. It was just behind Rivers Casino, according to the Illinois Gaming Board.
Foot traffic is down by 20%, and gaming revenues per visitor were 35% lower than expected. So, what is behind these poor numbers? According to officials, the main issue is the casino’s lack of amenities and on-site parking. Without these essentials, visitors are making quick stops rather than lingering, which is putting a serious dent in gaming revenue.
To make matters worse, the parking situation is far from ideal. While there is a private parking garage just one block away, it is not exactly convenient. The garage, located at 50 E Ohio Street, offers free parking and valet services to “qualified Bally’s Rewards members.” However, that is only if you are willing to park on level 11 and present your rewards card at the gate. For everyone else, the need to pay for parking might be a major turn-off, especially for first-time customers.
According to a Chicago Sun-Times publication, City of Chicago Chief Financial Officer Jill Jaworski said:
For a casino to really thrive, you need all of the other amenities.
Bally’s Chicago assures permanent facility will bridge revenue gap
Despite the temporary casino’s performance, there is still a glimmer of hope on the horizon. According to Jaworski, the real magic will happen when the permanent facility is up and running. The upcoming $1.7 billion casino and entertainment complex in River West is expected to come with a much larger scale of operations. This is because they have already purchased a $250 million plot of land.
Jaworski said of the permanent location:
We continue to be very excited about the permanent casino, which is going to offer all of the amenities and entertainment that you would expect when you go to a full-blown casino.
“This is a much larger, permanent project. There’s going to be 4,000 gaming positions, a 500-room hotel, and over 3,000 parking spaces on site, as well as an entertainment center and a single-floor casino design with many other amenities. We’re expecting the permanent casino to generate hundreds of millions of dollars to support our police and fire pensions, to which our casino revenues are dedicated, as well as thousands of construction and operation jobs for Chicagoans.”
Bally’s Chicago is set to face stiff competition from Hard Rock Casino Rockford
With the permanent facility springing up next year, a worthy competitor among the Illinois casinos that Bally’s Chicago should watch out for is Hard Rock Casino Rockford.
To put things into perspective, Hard Rock Casino Rockford has seen its revenue reach over 40% year-over-year since moving into its permanent location. Gaming revenue reached nearly $100 million in 2024. That was a big jump from the $69 million it made in 2023 when it was still in its temporary setup.
However, Hard Rock had the advantage of on-site parking at its temporary location. Bally’s temporary casino has a private parking garage a block away, which may be deterring some visitors. To meet its target, Bally’s would need to double its revenue. A tall order, indeed.
