Dean Kennedy 
While its temporary gaming venue struggles, Bally’s is reportedly seeking a property tax discount on its permanent casino hotel in Chicago.
The third-largest US city applies a property tax rate of 25% to commercial buildings, but Bally’s is seeking a 12-year rate of 10% — the same percentage at which the city taxes residential properties. Following those 12 years, Bally’s would gradually work its way toward paying the standard 25% property tax on its $1.7 billion integrated resort in the River West neighborhood.
The regional casino operator argues that the tax break is needed to help Bally’s Chicago reach financial viability, ensuring the gaming venue generates the expected revenue for the cash-strapped city. The proposal comes as Bally’s temporary casino at Medinah Temple struggles. In 2024, that venue generated just $16 million in receipts for the city, less than half of the $35 million forecast in Mayor Brandon Johnson’s (D) budget.
The temporary gaming venue is also lagging on other key measures. Its 2024 foot traffic and revenue per person admitted badly trailed expectations. Although Bally’s temporary casino is the only gaming venue in Chicago, it placed second in Illinois in 2024 gross gaming revenue (GGR).
Bally’s May Have Leverage
It’s possible that Bally’s may have some leverage to get the property tax discount it seeks because Chicago is still contending with heavily underfunded public pension obligations — one of the areas for which the city is banking on gaming revenue to shore up — and a declining credit rating.
On Tuesday, Standard & Poor’s (S&P) cut Chicago’s credit grade to “BBB”, one notch above junk territory, from “BBB+.” City officials balked at the downgrade, claiming fundamentals are sturdy.
“Despite the public budget negotiations over the last couple of months, the City’s credit fundamentals have not changed, …and the rating does not accurately reflect the strength of the City’s credit or ability to meet its debt and pension obligations,” according to a press release from city hall.
The permanent casino hotel is expected to generate up to $200 million annually for Chicago when it fully ramps up — a forecast that includes gaming, income, property, and sales taxes. It was expected that the operator would pay $67.6 million in property taxes to the city in 2027 — a forecast that was recently removed from the mayor’s website.
Bally’s Property Tax Bid Faces Challenges
While the Bally’s casino online cash slots has been hailed as a potential pension savior and jobs creator for Chicago, the effort to procure a property tax discount is fraught with challenges. Alderman Gilbert Villegas proposed the incentive, but many on the city council have had long-standing reservations about Chicago’s relationship with Bally’s.
Political insiders in the city say neither Mayor Johnson nor Alderman Walter Burnett support extending a tax break to Bally’s, indicating there may not be near-term momentum for assisting the gaming company.
Chicago’s most recently passed budget didn’t include a $300 million property tax hike sought by the mayor, which could be a sign there’s limited appetite among politicians in the city to boost taxes on businesses and residents.
