The latest study on the feasibility of a casino in Chicago reveals that it will not be profitable for investors.
Analysts have confirmed that Chicago casino is not profitable; especially under the current gambling tax structures.
Union Gaming which officially conducted a feasibility study for Chicago casino submitted its report on Tuesday. The report concludes that the casino tax and fee structures are too “onerous” to allow a developer to make more than 1% or 2% profit.
Earlier this year, Governor J.B. Pritzker signed a massive gambling expansion bill in Illinois allowing for six casinos in the state at different locations.
For the Chicago casino license, a gambling operator would have to pay a $250,000 application fee upfront. Moreover, the operator would also have to pay a $15 million “reconciliation” fee when the license is issued and up to $120 million in gambling position fees.
As the reports from the feasibility test are already submitted to the Illinois Gaming Board, they can now revise the terms in not more than 90 days time.
The study also claims that about $260 million worth of revenue will be drained from Indiana to the prospective Chicago casino.
Chicago Mayor Lori Lightfoot has already been expressing concerns about the feasibility of a casino in Chicago. On Monday, earlier this week, he said that the feasibility studies indicate that a gambling operator would not be successful with the proposed Chicago casino.