By
Jerry Smith
Staff Writer Updated: 09/01/2019
Jerry’s greatest advantage is his extensive experience on the casino floor. His time as a casino manager taught him everything about what makes a player tick. Besides being a skilled poker player, he has deep knowledge of all live table games and gambling regulations in the US.
Illinois to start talks on casino regulations modifications, Photo by Flickr
Gambling industry interests in Chicago, Illinois, have recently had troubling news. If a consultant’s study is to be believed, a Chicago casino that was set to open this year will be indefinitely grounded due to its lack of financial feasibility.
According to a mid-August study conducted by Union Gaming Analytics, the Chicago casino in question was found to be an extremely financially unfeasible project. According to the findings, this was primarily due to the astronomical casino tax rate of 72%, as proposed by the law. This, plus burdensome reconciliation fees, alarmingly reduced the profitability of the casino.
The findings indicated that the Chicago casino might become one of the state’s biggest loss-making machines if it were to open. The findings also indicated that vested interests might find it very hard to find the financing and support needed to get the casino in the game, let alone make it profitable. As a result, the study proposed that the Chicago casino project be halted, and efforts be made elsewhere.
In a recommendation sent to Chicago lawmakers, the Illinois Gaming Board – the highest overseeing authority of all matters gambling in Illinois – have requested state lawmakers to make amendments to the existing casino and gambling regulations. According to insider reports, it is the terms pertaining to the granting of Chicago casino licenses that need changing.
In an interview with the press, Charles Schmadeke, the newly appointed Chairman of the Illinois Gaming Board, said that the Board doesn’t have the right to provide a particular plan of action to the State. “Our role is merely to refer to [the General Assembly] for consideration, and it’s up to them to do as they deem appropriate,” he confirmed.
Mayor Lori Elaine Lightfoot, Mayor of Chicago, has openly expressed her support of the Board’s recommendations. She has suggested that lawmakers make their way to the drawing board again and find a feasible solution that can help the affected Chicago casino get off the ground.
Much is to be gained if things do go in the casino’s favor. According to the same study by Union Gaming Analytics, Chicago’s 4000+ casinos could potentially bring in over $1 billion in revenue annually, once they operate full swing. This is more than three times the annual revenue of Illinois’ most profitable casino located in Des Plaines. Mayor Lightfoot believes that getting the grounded Chicago casino back into action will go a long way in making these projections a reality.
Mayor Lightfoot has always been an ardent supporter of Chicago casinos. Right after the release of the damaging Union Gaming Analytics report, she vowed to the ‘gambling interests’ to find a mutually-acceptable solution to the problem.
Following the recent recommendation submitted by the Illinois Gaming Board, Mayor Lightfoot has reaffirmed her commitment to the Chicago casino industry and has promised to revise the impossibly high tax structure.
In an interview with the press, she stated that not revising the tax structure would force Illinois to take painful decisions to generate revenue. State insiders believe she was referring to the state’s plan to initiate property tax hikes to fund Illinois’ almost depleted pension funds.
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