The Chicago casino project has been ready for a while and problems have already emerged. If the project becomes reality, someone will have to deal with massive costs…
And there are not many parties interested in doing so …
Background of the Story
The city of Chicago has just requested an official report on the future casino project. The report will be presented to the Illinois Gaming Board soon. According to the details, the Illinois General Assembly is ready to overtax the facility with up to 72% of gross revenue. It means that the casino venue could bring a maximum 3% profit per year. In the case of the downtown location, the expected revenues could be slightly higher.
Both governor J.B Pritzker and Chicago Mayor Lori Lightfoot promised to solve the issue. However, it is yet to be seen whether the state lawmakers are ready to support officials. Commenting on the possible outcome, state senator and chief sponsor of Chicago casino bill, Terry Link said:
“Call me skeptical. They’ll have to do a lot more convincing to get me to agree to cut the tax rates.“
He added:
"All of us would like the largest profit margin we can. Whoever builds the casino is still going to make a lot of money."
Mayor Concerns
Mayor Lightfoot observed that current tax situation prevents expected casino project. According to her opinion, $750 million will not be enough for casino development and financing.
She added:
"We've got to get this tax structure right or we cannot get anything done. If someone took less, the state and city together could gain from an incredible opportunity. It's in everyone’s interest."
She has yet to speak about a possible slash of 33% tax on gross casino revenues upon completion of the project. According to the city's plans, tax revenues are going to fill city police and pension holes. Lightfoot didn't drop the previous plan that Chicago becomes the owner of the casino complex which would allow the city to take profits. Loction is still to be determined aacording to proposals.
The reaction is arriving from House GOP Leader Jim Durkin. He said:
"I look forward to working with Mayor Lightfoot and Gov. Pritzker on any adjustments that need to be made and hopefully we can address any issues in the upcoming veto session".
Meanwhile, the top insider of casino project, whose name is not revealed, said:
"I don’t think you're going to see a knee-jerk. Oh, my God, blow it up and start over“.
Source:
“The Chicago casino is likely dead—unless someone agrees to take less“, Greg Hinz, chicagobusiness.com, August 13, 2019.
