Golden Nugget Danville Casino Already Helps Charities, Public Pensions

Golden Nugget Danville Casino already supports charities and public pensions

The Golden Nugget Danville Casino opened in Illinois last May. Since then, income from the property has been a boon to local charities and the previously beleaguered public pension system.

While the city expects to bring in $2 million in annual revenue from casino revenue alone, the Golden Nugget generated $1.332 million in just six months of operation, suggesting the venue could surpass Danville in revenue previous estimates.

Golden Nugget Danville operated under a temporary license until it was granted permanent status by the Illinois Gaming Board (IGB) last October. The casino is a joint venture between the Wilmot family and Tilman Fertitta, whose Fertitta Entertainment Inc. (FEI) controls the Golden Nugget brand.

The new venue is already helping "fund riverfront development, modernize city sewers, add a Boys and Girls Club and pay off city fire and police pensions," Dave Hinton reported in The Press-Gazette.

Golden Nugget provides pension support

Illinois has some of the most underfunded and most obligated public pension systems in the United States. Although Danville is dwarfed by Chicago, the state's largest city, it is not immune to this trend.

An estimated 80 cents of every dollar of casino revenue flowing to Danville funds retirement plans for firefighters and police officers. Danville is subject to an Illinois law that requires 90 percent of the state's firefighter and police pensions to be funded by 2040. Estimates suggest the Danville Nugget's annual contributions could amount to 10 to 12 percent of the city's budget, which could provide significant relief to strained pension plans.

Mayor Rickey Williams Jr. said the plan is to be 100 percent funded by 2040, exceeding 90 percent of requirements. This is an ambitious goal that may require a commitment of resources beyond gold nuggets.

With the help of the new casino and several other increased revenue sources, funding for the Danville Police Pension will increase by 1.93% in fiscal year 2022-23, while funding for the Firefighter Pension Plan will increase by 1.5%.

Danville also earns $1 for each Gold Nugget entry, The Press-Gazette reports.

Not available at all new casinos in Illinois

While Golden Nugget Danville Casino supports Danville’s budget, retirement plans and local charities, this does not apply to all new casinos in Illinois.

A temporary version of Bally's Chicago, located in Medinah Temple near River North, brought in just $3.1 million in revenue to the Windy City from its opening in September to the end of last year. That was well below expectations of $12.8 million.

Bally's Chicago is expected to generate exponential sales growth for the city over the next two years and once it moves into a permanent location in 2026. However, those efforts could be delayed by water main issues at Liberty Center, home to the permanent gaming venue and where the hotel tower was originally planned.