The gaming board in Illinois is asking lawmakers to reconsider the law enacted earlier this year in order to make a casino happen in Chicago.
US.- The Illinois Gaming Board met this week and voted unanimously to adopt a resolution recommending the General Assembly to make modifications to the terms of the Chicago casino licence. The board argues that the current regulatory framework would make a casino in Chicago unprofitable.
The vote comes after a report indicated that a casino in Chicago would not be as profitable as initially expected. The report said that the tax and fee structure makes it hard for a casino in Chicago to be feasible.
“Based on results of the study as required by the Illinois Gambling Act, the board recommends that the General Assembly consider making modifications to the terms of the Chicago casino license authorised under the Illinois Gambling Act,” said the board.
Union Gaming Analytics conducted an analysis that says that the high tax and fee structure in the Illinois law would make the Chicago project “generally not financially feasible.”
The results would be the same regardless of where the casino is located.
After the findings, Mayor Lori Lightfoot talked about the implications. “While the study confirms our concerns about the tax structure that the legislature passed, we know this can be addressed. We look forward to working with the governor and legislative leaders to revise the legislation.”
The analysis from Union Gaming says the law features the highest effective gaming tax and fee structure in the country. The legislation, therefore, makes it difficult to finance a Chicago casino and generate profits.
Development costs would generate 1% or 2% return annually, including licensing and other fees. The analysis says the return percentage isn’t “an acceptable rate of return for a casino developer on a greenfield project.”