Bally’s Chicago casino shows progress, but revenue falls short of projections

Bally’s Corp., the operator of Chicago’s first casino, has made steady progress in its first year, but revenues from its temporary site at the Medinah Temple have fallen short of projections. 

The casino generated $124.6 million in revenue over its first 12 months, below the city’s initial goal of $200 million annually, a target set to provide funding for Chicago’s police and firefighter pension funds. Despite the underperformance, state revenue analysts remain optimistic about the long-term prospects for Bally’s $1.34 billion permanent casino complex, scheduled to open by 2026.

The Illinois gambling market is crowded with 15 other casinos, 19,000 video gaming terminals in bars and restaurants, and mobile sports betting platforms, creating stiff competition. Analysts foresee cannibalization among casinos in the Chicago metropolitan area as gaming options continue to expand.

“Cannibalization at existing Illinois casinos is inevitable, especially those in the Chicago metropolitan area where the majority of the gaming expansion will take place,” analysts from the state Commission on Government Forecasting and Accountability wrote.

Despite these challenges, Bally’s and state analysts are confident that the permanent casino, once completed near downtown Chicago, will eclipse competitors like Rivers Casino in Des Plaines, which recorded $560 million in revenue over the past year. State analysts believe Bally’s could eventually become the top revenue-producing casino in the region.

“Some believe that a Chicago casino, with a permanent facility, will eventually be the top revenue-producing casino in this region... this would have to occur at a time when gaming options in the Chicago metropolitan area would be higher than they have ever been before,” analysts noted.

Chicago Mayor Brandon Johnson has been banking on the casino's performance to help plug a projected $982 million budget gap. His budget anticipates $35 million in casino tax revenue for 2024, but Bally’s would need to triple its current monthly earnings to meet that target.

Bally’s secured $940 million in financing earlier this year to cover the construction of its permanent facility, and company officials remain optimistic. Chairman Soo Kim stated in August that the Medinah operation is still "ramping up," and the $200 million annual revenue projection for the city remains feasible.

“We haven’t seen anything in this market that says we’re not as excited as we can be,” Kim told the Chicago Sun-Times Editorial Board.

In addition to its economic impact, Bally’s has also made strides in community engagement. The casino has created more than 600 union jobs and graduated over 200 students from its Dealer Training School. It has also hosted multiple job and vendor fairs to foster partnerships with local businesses.

“We are thankful for everyone who has made this year possible, especially our local team, and look forward to continued growth over the coming year,” said George Papanier, Bally’s president, in a statement.