Despite challenges with its temporary gaming venue, Bally’s is reportedly pursuing a significant property tax reduction over 12 years for its upcoming permanent casino and hotel in Chicago
At the start of January, we reported on Bally’s Chicago’s freshest investment program to boost diversity and inclusion in its $1.7 billion casino and resort project.
Then, the company announced it would allow investors to buy a 25% stake in the project.
Now, the Rhode Island-based gambling company is looking to secure a significant property tax reduction for the same project built along the Chicago River at the site of the former Tribune printing plant at 777 West Chicago Avenue.
Bally’s Wants 10% Tax for 12 Years
The company, awarded an exclusive casino license for the city in 2022, is pushing for a tax incentive to help make the casino financially viable.
Alderman Gilbert Villegas of the 36th Ward introduced the proposal.
According to Crain’s, Bally’s is seeking a 12-year property tax incentive that would drastically reduce its assessment from the standard 25% of market value for commercial properties to just 10%, the typical rate applied to residential real estate.
The incentive would be applied for the first ten years. After this period, the tax rate would gradually return to the regular 25%, reaching 15% in the 11th year and climbing to 20% in the final year.
Bally’s believes this incentive is critical to maximize the potential of the casino and guarantee its success in the long term, which would ultimately benefit the city by creating jobs, boosting the local economy, and enhancing the city’s reputation as a destination for entertainment.
$200M in Yearly Gaming Taxes Alone
As Bally’s corporate development director, Chris Jewett, explained, the casino could generate approximately $200 million annually in gaming taxes for the Windy City and additional sales and amusement taxes.
Jewett also highlighted the broader economic impact, including the creation of union jobs and a future property tax revenue boost.
However, the request for the tax break is, as expected, facing plenty of backlash and political hurdles.
Villegas’ proposal has sparked skepticism among City Council members, some of whom were already cautious about the project from the start.
The recent approval of a contentious $17.1 billion city budget has intensified these concerns, especially since it passed without the proposed $300 million property tax increase suggested by Mayor Brandon Johnson.
The proposal was sent to the Rules Committee, a signal that the road ahead for Bally’s request could be challenging.
Critics of the proposal argue that the tax break could shift the tax burden onto city residents, particularly homeowners, as the city continues to manage rising taxes.
Some also point to Bally’s underperforming temporary casino at the Medinah Temple as a potential indicator that the company may fail to meet its announced revenue goals.
On the other hand, supporters of the tax break argue that such incentives are standard for significant development projects and necessary to draw in investors.
Bally’s has also proven its commitment to the city’s well-being via a $40 million payment to police and fire pensions and pledges supporting minority- and women-owned businesses.
The company maintains that the incentive aligns with agreements made under the previous mayor’s administration, though Mayor Brandon Johnson and the City Council make the final decision.
