On Thursday, May 12, the public was invited to provide input on Chicago Mayor Lori Lightfoot’s selection of Bally’s $1.74 billion casino resort to receive the city’s gaming license. It would be located in River West at the Freedom Center site, currently occupied by Tribune Publishing’s printing plant. Objections immediately were raised by aldermen, residents and others.
After announcing she would not announce her choice of a casino developer until this summer, Lightfoot abruptly named Rhode Island-based Bally’s over Rush Street Gaming’s $1.62 billion Rivers at the 78 in the South Loop and Hard Rock’s $1.74 casino at One Central on the Near South Side. Observers said Bally’s had the inside track after a study by the city’s gaming consultant found it would generate $191.7 million in tax revenue in its sixth year of operations, more than the other two competitors, earmarked for police and fire pensions. In addition, Bally’s will give the city an upfront payment of $25 million, plus pay $40 million for the license and $4 million annually.
Bally’s officials said a temporary casino with 800 slots and table games could open in summer 2023 in the historic Medinah Temple, and the permanent venue could open in early 2026. Residents in the Medinah Temple area previously expressed doubts. Deborah Gershbein, president of the Streeterville Organization of Active Residents, said members were “very, very surprised” to hear about the temporary casino plans. She said, “It’s such a congested area already, and I just can’t imagine how it would accommodate the additional traffic. It just doesn’t make any sense at all, frankly, and we do think it would be detrimental to the community and our quality of life.”
Bally’s proposal for the permanent facility includes a gaming floor with 3,400 slots and 170 table games; 3,000-seat theater; Riverwalk extension; 500-room hotel tower; outdoor park and music venue; six restaurants and a food hall; fitness center, sun deck and pool spa. Bally’s has committed to 60 percent minority hiring for the 3,000 construction and 3,000 permanent jobs the project would create.
Hundreds of people attended the public meeting, residents’ first chance to react to Lightfoot’s selection of Bally’s to develop a downtown Chicago casino. Bally’s representatives, city leaders and a Chicago Police Department official were more often than not put on the defensive on a variety of issues. Lightfoot was not present but thanked attendees for their interest in the proposal via a video message. She said, “We may not be able to calm all of your concerns, but we are confident that this casino will not only benefit our entire city, but you as well.”
The meeting format allowed about 40 individuals to voice concerns about increased traffic and crime and decreased property values during the often-tense gathering; if they spoke more than 90 seconds their mic was cut off, causing others to shout out in frustration.
The main complaint, according to numerous attendees, was that a casino does not belong in a residential area. One commenter noted her neighborhood near the proposed casino site is “quiet, stable and family oriented.” Several said they hoped the officials actually listen to them and “that they don’t just do it for lip service.”
Hedge fund owner and Bally’s Chairman Soo Kim said, “I’m here in person telling you that we’re going to keep our promise. We negotiated this proposal which was accepted by the city very intentionally. My primary responsibility is to protect money and make it grow. That’s my job. But I believe that there’s a way to do that, and yet do that the right way, and make a good impact. We made the promise that we are going to be good to labor and underrepresented groups and make sure that we’re good to everyone.”
Questions were raised about predatory marketing campaigns and gambling addictions. Several stated gambling problems can lead to increased depression, divorce and other societal issues. “No amount of revenue to the city is worth people’s well-being,” said a representative from Stop Predatory Gambling Illinois.
A speaker from the River North Residents Association, which represents 23,000 people who live near the proposed casino site, noted more a survey found more than 86 percent of 2,311 respondents opposed the casino. “I think Chicago is one of the great American cities, and I think we can do better than this,” said Brian Israel, chairman of the association.
A rep from the Chicago Hospitality Workers Union noted many industry workers were laid off during the pandemic and still are out of work. She said she hopes the project is approved and starts soon so people can be offered good jobs. The union represents many immigrant workers and women of color, she said.
Some concerns got through to panel members. For example, several speakers complained about plans for a pedestrian bridge linking the casino to a nearby residential area. Bally’s Chairman Soo Kim said he’d eliminate that part of the plan.
Another resident said, “I’d ask anyone on the panel to give them one casino site anywhere in the world that has improved public safety.” Another stated, “We are tired of these young kids with guns in their hands attacking innocent people.” Soo said Bally’s would coordinate safety efforts with Chicago police and would spend at least $5 million annually on security.
The project faces fierce opposition from downtown Alderman Brendan Reilly. Previously, he stated, “We’re being told that if we don’t approve this soon, that we will have no choice but to raise property taxes, but we’ve been receiving this kind of drip-drop of information from the administration. We are being asked to review something that is literally being changed as we go.”
Alderman Brian Hopkins of the 2nd Ward, another opponent of the Bally’s proposal, said he is forming a coalition to lobby and vote against the casino. He stated, “I’m disappointed but not surprised. Despite the mayor’s denial, she had met with the Bally’s team and made her decision in a closed-door meeting, which is the opposite of the transparency that we were promised.”
But casino has a strong supporter in Alderman Walter Burnett, representing the casino host ward. He agrees with Lightfoot’s claim that without the casino, the alternative would be a property tax hike. He said, “It will be a world class entertainment destination that provides jobs, boost tourism numbers and brings a host of incredible amenities into the 27th ward. This is a once in a lifetime opportunity for the city of Chicago and it will be a premier destination for generations to come.”
Kim concluded, “We understand all of the promises that this casino allows the city of Chicago to keep and the state of Illinois, and we accept and bear those responsibilities. We’re excited for the future. And understand that this is really just the first step. It’s just the beginning of a long relationship.”
The full city council and Illinois Gaming Board still must approve the gaming license. Kim said he does not expect any issues with approvals. He noted the state gaming board already vetted Bally’s over its casino in Rock Island. Also, through another company, Kim owns the Casino Queen in East St. Louis. Actually, having no Chicago-area operations was a positive for Bally’s since it had no business conflicts.
Bally’s owns and manages 14 casinos in 10 states. It plans to make the Chicago casino the flagship of its chain, Kim said.
