The Illinois Gaming Board gave the green light to a resolution which recommended that state lawmakers should bring some changes in the terms of a Chicago-based casino project which had previously been rejected due to high taxes. The recommendation has been made after a feasibility research founded the heavy taxes would prevent gambling developers from breaking ground on the terrain available for the casino.
Earlier this summer, the prospects of a Chicago casino were shattered by a consultant’s report, but now, Major Lori Lightfoot joined the proponents of the project and called for the state lawmakers to reconsider their decision and allow the casino establishment, which according to preliminary expectations could bring serious money flow to the state.
Now the state’s gambling regulator has joined the ones calling for such a change. The beginning of the week saw the members of the Illinois Gaming Board, which is the agency responsible for monitoring and control of all casinos that operate across the state unanimously pass a resolution recommending the General Assembly should consider making some changes to the terms of the Chicago casino license.
As mentioned above, the resolution was passed by the five-person gaming board without any discussion. Also, the board members did not make any specific suggestions for the changes which, according to them, are needed. The chairman of the Illinois Gaming Board, Charles Schmedeke, has made it clear that in this case, the role of the gambling regulatory body is only to refer to state lawmakers for consideration. Whether or not to take further action on the proposal, is up to them.
Large Chicago Casino Could Generate Gambling Revenue of $1 Billion Annually
The recommendation made by the Illinois Gaming Board has been the latest move towards a Chicago-based casino, which has long eluded state and city leaders.
The resolution which the members of the gambling regulator unveiled, give ground for further negotiations on the possible addition of a long-desired gambling establishment. The state’s gambling expansion was officially signed into law by Governor J.B. Pritzker on June 28th. As part of the expansion, the state’s gambling board was required to carry out an independent study on the future profitability of a Chicago-based casino and analyze the ability to finance such a large gambling hub project.
According to results of a study carried out by Union Gaming Analytics, a Chicago casino could not be established there due to the heavy tax structure which had been previously unveiled as part of the new gambling expansion legislation. Considering the fact that the effective tax rate amounts to 72%, there would hardly be any developer who could engage with financing such a project.
On the other hand, such a massive casino could generate annual gambling revenue of $1 billion and nearly triple the yearly take which the current largest casino in Illinois has. According to the consultancy firm, such a massive money flow could only be generated at a downtown location in the part of the city known as a “tourist center”, and not at the South and West parts of Chicago.