Bally’s Chicago Falls Short of Revenue Targets

Bally’s Chicago, the city’s first legal casino, has struggled to meet its gaming tax revenue targets, casting a shadow over what was once seen as a promising addition to the city’s economic landscape. Since opening in September 2023, the temporary casino at Medinah Temple has underperformed, generating only $63.2 million in new tax revenue—far below the $135 million that city officials had hoped for. While the shortfall is significant, there is optimism that the permanent Bally’s resort, slated to open in 2026, will bring the success the city expects.

 

Temporary Setbacks and Underwhelming Numbers

Despite initial excitement surrounding the launch, Bally’s Chicago has struggled to attract and retain visitors, a concern that Mayor Brandon Johnson has attributed to the limitations of the temporary location. With fewer amenities and no on-site parking, the casino has failed to create the immersive experience that would encourage longer stays and repeat visits.

In its first three weeks, Bally’s Chicago saw impressive foot traffic, with over 80,000 guests passing through the doors, making it the second-busiest casino in Illinois at that time. However, that initial excitement quickly waned, and foot traffic has since dropped by 20%. More concerning, gaming revenues per visitor were 35% lower than anticipated.

The issues are largely practical: the lack of amenities and parking have kept customers from lingering and spending. A private parking garage located one block away from the casino has proven inconvenient, especially for first-time visitors. While Bally’s offers free valet services to “qualified Bally's Rewards members,” the garage is situated on the 11th level, and those without rewards cards must pay for parking. These barriers have led to quick visits rather than the prolonged stays that are crucial for increasing gaming revenues.

Jill Jaworski, Chief Financial Officer for the City of Chicago, emphasized that amenities are key to a thriving casino: “For a casino to really thrive, you need all of the other amenities.”

Despite the setbacks, city officials remain hopeful that the permanent Bally’s resort will bridge the revenue gap and help meet expectations. The $1.7 billion casino and entertainment complex, scheduled to open in River West in 2026, is set to offer a far larger scale of operations. Bally’s has already invested $250 million in a plot of land for the development, and the resort promises a much more comprehensive experience.

The permanent facility will include 4,000 gaming positions, a 500-room hotel, and more than 3,000 on-site parking spaces—features that the temporary setup lacks. Additionally, the new location will house an entertainment center and a streamlined, single-floor casino design. City officials believe these upgrades will attract a broader customer base and increase gaming revenue.

“We continue to be very excited about the permanent casino,” said Jaworski. “This is a much larger, permanent project. There’s going to be 4,000 gaming positions, a 500-room hotel, and over 3,000 parking spaces on site, as well as an entertainment center and a single-floor casino design with many other amenities. We’re expecting the permanent casino to generate hundreds of millions of dollars to support our police and fire pensions, to which our casino revenues are dedicated, as well as thousands of construction and operation jobs for Chicagoans.”

While Bally’s Chicago may be looking toward its future, it faces stiff competition in the Illinois casino market. Hard Rock Casino Rockford, which opened its permanent facility recently, has seen significant revenue growth, with a year-over-year increase of over 40%. In 2024, Hard Rock Rockford generated nearly $100 million in gaming revenue, a substantial rise from $69 million in 2023 when it was still operating out of a temporary setup.

One of Hard Rock’s key advantages has been its ample on-site parking, a convenience that Bally’s Chicago has struggled to offer at its temporary location. For Bally’s to meet its future revenue goals, it would need to double its current figures—a daunting challenge given the competitive environment.

 

For a casino to really thrive, you need all of the other amenities

 

The Future

As Bally’s Chicago works to improve performance at its temporary location, the permanent resort in River West remains the city’s best hope for realizing the projected benefits of casino gaming. While the current numbers are underwhelming, the promise of a state-of-the-art facility with a full suite of amenities has the potential to reshape Chicago’s gambling landscape.

Whether the permanent casino can deliver on its ambitious projections remains to be seen. The competition, both from nearby casinos and potential market shifts, will continue to shape the path ahead. For now, the city is hoping that when the new resort opens in 2026, it will offer the experience and revenue that the temporary setup could not.