The massive gambling company Bally’s Corporation, headquartered in Rhode Island, is actively pursuing a sizable tax exemption for its planned $1.7 billion casino and hotel complex in Chicago’s River West district. For the first 12 years of the project, the business wants to reduce the city’s commercial property tax rate from 25% to 10%, with a gradual restoration to 25% after that. Bally’s contends that this tax break is essential to the project’s financial viability and capacity to bring in a sizable sum of money for the city.
Economic Growth and Revenue Concerns
According to Bally’s corporate development director, incentives like these are often essential for attracting investment and fostering economic growth. The casino operator estimates that the development will contribute $200 million annually to Chicago’s economy through gaming, income, property, and sales taxes. However, the push for a tax reduction comes amid challenges at Bally’s temporary casino in River North. The Medinah Temple location has significantly underperformed, with city receipts reaching just $16 million in 2024—well below the $35 million initially projected in Mayor Brandon Johnson’s budget.
Despite being the only gaming venue in Chicago, the temporary casino has struggled with low foot traffic and disappointing revenue per visitor. This has raised concerns about Bally’s ability to meet long-term revenue goals and contribute to alleviating the city’s financial issues, including public pensions and a lowered credit rating.
The tax incentive proposal, introduced by Alderman Gilbert Villegas, has met resistance in Chicago’s City Council. Alderman Jason Ervin, a close ally of Mayor Johnson, has placed the proposal in the Rules Committee, indicating opposition. Both Mayor Johnson and Alderman Walter Burnett have reportedly expressed skepticism about the tax break. Critics argue that such a reduction could shift the tax burden onto local residents and businesses. Even with the proposed reduction, Bally’s tax bill would still amount to $18 million annually—significantly higher than what the site previously contributed before redevelopment.
However, Bally’s backers contend that the incentives are required to draw significant investments that have the potential to boost the economy and create union employment. Additionally, Bally’s has committed to the community by working with women- and minority-owned businesses and contributing $40 million up front for police and fire pensions.
In the end, Mayor Johnson and the City Council will make the choice as the tax break controversy heats up.
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