Bally's Chicago store sees overwhelming growth, falls far short of sales expectations
Bally's Chicago, located in the historic Medina Temple, is currently undergoing damage control. Previously, the temporary casino failed to come close to pre-opening revenue projections.
Bally's Chicago opened on September 9 with 800 slot machines and 56 live dealer tables. The 34,000-square-foot temporary gaming facility will help the Rhode Island-based gaming operator build a permanent $1.7 billion resort casino at Liberty Center.
The temporary casino also was approved by state and city officials in part to immediately inject gambling tax money into Chicago's nearly bankrupt police and fire pension funds.
When then-Chicago Mayor Lori Lightfoot (D) approved Bally's bid, her office predicted the temporary casino would bring the city about $12.8 million in gambling tax revenue in 2023. Tax forecasts assume Bally's will earn $102.5 million by 2023, with $61.5 million coming from slot machines, $40 million from table games and $1 million from sports betting.
Bally's Chicago is significantly underperforming, according to a revenue report released Wednesday by the Illinois Gaming Board (IGB).
Unfortunate Beginning
Bally's Chicago generated just $30.4 million in gross gaming revenue (GGR) between September and December, a far cry from Lightfoot's forecast of $102.5 million, according to the IGB. The city's share of gaming taxes came in at just over $3.1 million, $9.7 million less than expected.
Bally officials in Chicago said the riot was unfounded. They claim the temporary casino "opened later than expected" due to regulatory delays and that the hotel is still ramping up marketing efforts to become part of the Windy City's landscape.
Bally's continues to expand its relationship with Chicago gaming customers by offering guests new and convenient ways to visit the hotel," said Mark Wong, general manager of Bally's Chicago."We've added free parking, new special offers and extended hours time to meet customer expectations. "
Those efforts, which also included a controversial shuttle service between the casino and Chicago's Chinatown, helped the casino have its best month ever in December. It recorded nearly 100,000 entrants in 31 days and earned more than $8.5 million in prizes from players. The casino is averaging about 3,220 daily visitors, a significant increase from the 2,681 daily visitors reported in October, its first full month of operation.
Bally's made a one-time upfront payment of $40 million to Chicago last year to obtain an integrated resort license from the city. These funds provide immediate retirement benefits to first responders.
High Prediction
While December was a strong month for Bally's Chicago, the temporary facility has high sales goals for the next few years.
City officials expect the casino to generate $242.7 million in profits by 2024 and pay $34.4 million in gambling taxes to the city. Revenue is expected to rise to $253.6 million in 2025 and $638.6 million in 2026 when the permanent resort is expected to open.
There are many concerns about whether Bally's has the financial wherewithal to make the $1.7 billion project a reality. Bally's Casino also reportedly faces a federal investigation for beating out other casino applicants for a Chicago gaming license.
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Source: www.casino.org
