Bally’s request for a tax break on its Chicago casino project is set to face some political blowback.
The Rhode Island-based gambling firm is pushing for a substantial property tax reduction to support its $1.7 billion casino and hotel project along the Chicago River at the former Tribune newspaper printing plant at 777 West Chicago Avenue, Crain’s reported.
After being awarded Chicago’s sole casino license in 2022, Bally’s is seeking a 12-year tax incentive that would reduce its property tax assessment from the commercial property standard of 25 percent of its market value to 10 percent — the same rate as residential real estate — for the first decade. It would then start gradually increasing back up to the regular 25 percent rate for commercial properties.
Bally’s argues the incentive is essential to ensure the project’s financial viability and maximum revenue potential for the city.
The tax incentive proposal, introduced by 36th Ward Alderman Gilbert Villegas, faces scrutiny from the City Council. Some members, skeptical of the project since its inception, are wary of granting the incentive, especially after a contentious $17.1 billion city budget passed last month without a $300 million property tax hike initially proposed by Mayor Brandon Johnson. The ordinance was relegated to the Rules Committee by 28th Ward Alderman Jason Ervin, floor leader for Johnson, signaling a challenging legislative path ahead.
Bally’s contends the incentive is critical to unlocking the long-term benefits of the casino, which is projected to generate $200 million annually in gaming taxes for Chicago, in addition to sales and amusement taxes. Chris Jewett, Bally’s corporate development director, emphasized the broader economic impact, citing the creation of union jobs and increased property tax revenues over time.
Critics argue the incentive would shift the tax burden onto residents, even as Bally’s anticipates an $18 million annual tax bill under the reduced rate — ten times the property’s prior contribution before the former printing plant’s redevelopment. Yet the development without the incentive would help to further ease the property tax burden on homeowners and other landlords.
Bally’s also faces questions about its underperforming temporary casino at the Albert Friedman-owned Medinah Temple in River North, which has fallen short of revenue projections.
Supporters of the tax break, including Villegas, assert that incentives are standard for major developments, helping to attract investment and spur economic growth. Bally’s initial $40 million payment to the city’s police and fire pensions and its commitment to minority and women-owned partnerships bolster its case.
The request comes as Bally’s nears the end of demolition at the former Tribune plant. While Bally’s insists the incentive aligns with its agreement with former Mayor Lori Lightfoot’s administration, the decision ultimately rests with Mayor Brandon Johnson and the City Council. A rejection, Bally’s warns, could deter future billion-dollar investments in Chicago.
— Sam Lounsberry
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