Onerous Tax Would Make Casino in Chicago Unprofitable

Written by:
Associated Press
Published on:

CHICAGO (AP) — A casino in Chicago would not make enough profit under current Illinois law to be worth it, a consultant said Tuesday.

*6 weeks free trial - test drive - best in the biz
*Deposit with Bitcoin - They'll double it!
*Get your own domain, customized website, logo
*Switch in under an hour, earn mrore $$ for doing so
*Odds featured on DonBest.com
*Thousands of betting options daily + live in-play
*Easy and discreet payment options include gift cards
*Walmart gift cards also accepted
Start Earning Money From Your Sheet Here

Union Gaming Analytics' study cited the state's "onerous tax and fee structure" on casinos in reporting that an operator could expect a profit of as little as 1%. Similar facilities in Illinois and the region take home 20% or more.

The study financed by the city of Chicago was required by a law that Democratic Gov. J.B. Pritzker signed in June to substantially expand casino gambling in Illinois. The revenue generated is to help finance a $41.5 billion infrastructure-improvement plan.

The Las Vegas, Nevada-based consultant analyzed five sites in Chicago, including parcels formerly used by Michael Reese Hospital, the Robert Taylor Homes public housing project, and U.S. Steel. The study noted that a developer would have little interest after paying a $15 million license reconciliation fee, up to $120 million in gambling-position fees and a 33% privilege tax on adjusted gross receipts — in addition to income taxes.

"The reconciliation fee alone would wipe out any profits generated for many years, if not decades," the study said. "The return on investment profile for all five sites is subpar, if not negative over the five years projected."

The Illinois Gaming Board has 90 days to ask lawmakers to change the terms of the Chicago casino's operation. Mayor Lori Lightfoot said the city plans to pursue the terms change.

"We have been clear from Day One that the creation of a new casino for Chicago has to be financially viable and address the revenue needs of the city of Chicago," Lightfoot said in a statement. "While the study confirms our concerns about the tax structure that the legislature passed, we know that this can be addressed."

The law's provisions for gambling expansion outside of the Chicago casino also would have a negative effect. Development in Illinois is expected to gain $260 million in the next five years from Illinois gamblers currently going to Indiana casinos. But Chicago will get intrastate competition from casinos in suburbs north and south of the city, video poker terminals, and betting sites at horse racing tracks.

Lawmakers approved new casinos in Rockford, Danville and Williamson County in southern Illinois, although the study indicates a Chicago casino would not compete for gamblers visiting those facilities.

Lightfoot released the results of a survey in which Chicago residents were asked about their preference for a casino. Among the 10,000 responses, just over one-third surveyed want a casino near downtown, while just under one-third want a casino in a space needing new development.

Gambling News

Gambling and Sports Betting News Wire - October 22 2019

Here are today's headlines in the world of gambling and sports betting as they happen - Tuesday October 22, 2019.

Credit Card Firm Linked to Online Gambling Raided

Credit Card Firm Linked to Online Gambling Raided

Over 100 officers stormed the office of 51 Credit Card Inc Monday.  The company is involved in processing credit card payments for online gambling sites across the globe.

Billy Walters Loses His Appeal

Billy Walters Loses His Appeal

The most successful sports bettor of our time, Billy Walters, has been denied his appeal to re-consider his five-year prison sentence.

Why Attempts to Legalize Sports Betting in California Will LIkely Prove to be a Bust

Why Attempts to Legalize Sports Betting in California Will LIkely Prove to be a Bust

Legalized sports betting in the USA's most populous state of California we know will not be happening any time soon, and there is a very good chance we won't see it in this lifetime either (or at least for another generation).

Gambling and Sports Betting News Wire - October 21 2019

Here are today's headlines in the world of gambling and sports betting as they happen - Monday October 21, 2019.