Proposed Chicago casino unattractive to investors
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Posted On: 08/14/2019 9:30:49 AM
Proposed Chicago casino unattractive to investors because of ‘onerous’ taxes; South and West side sites wouldn’t draw tourists, says a state-hired consultant
By Dan Petrella , Ryan Ori , John Byrne and Jamie Munks
|
AUG 13, 2019 | 12:50 PM
http://www.chicagotribune.com/politics/ct-new...story.html
Union Gaming Analytics’ report says none of the city’s proposed sites would attract enough tourists and recommends choosing a downtown location instead. Even with a more centrally located site, though, the study found that excessive taxes and fees likely would ward off potential operators, who would generate “at best a 1% or 2% return annually.”
At the state’s 10 existing casinos, 5% of the post-payout revenue goes to the local government where the riverboat docks or where the casino is located. The state keeps 10% to 45%, depending on how much revenue the casino generates.
For the Chicago casino, the city’s one-third take of post-payout revenue would be directed to severely underfunded police and firefighter pension plans.
In addition to those taxes, the city casino operator also would have to pay a $250,000 application fee upfront, a $15 million “reconciliation” fee when the license is issued and up to $120 million in gambling position fees — which cost $30,000 each.
The casino is authorized to have up to 4,000 gambling positions — such as slot machines and blackjack tables — with some slot machines possibly going to O’Hare International and Midway airports.
After three years, the casino would have to pay a fee equal to 75 percent of its post-payout revenue from its most lucrative 12-month period, minus the fees paid upfront per gaming position. The study estimates that payment could total as much as $500 million.
Now why would the proposed casino owners pay that?
With the report pointing to the merits of a downtown location over the South and West side sites, Lightfoot also will face questions about her commitment to her campaign promise to bring development and jobs to struggling neighborhoods.
Still, the governor and mayor each attempted to cast the study in a positive light and vowed to work with lawmakers on any necessary changes to the law.
Well, looks like the casino will go…………..downtown.
Maybe you know some little places to go to
Where they never close
Just listen to the music of the traffic in the city
Linger on the sidewalk where the casino signs are pretty
How can you lose?
The House always wins, but what do you care
When you can go……..
By Dan Petrella , Ryan Ori , John Byrne and Jamie Munks
|
AUG 13, 2019 | 12:50 PM
http://www.chicagotribune.com/politics/ct-new...story.html
Union Gaming Analytics’ report says none of the city’s proposed sites would attract enough tourists and recommends choosing a downtown location instead. Even with a more centrally located site, though, the study found that excessive taxes and fees likely would ward off potential operators, who would generate “at best a 1% or 2% return annually.”
At the state’s 10 existing casinos, 5% of the post-payout revenue goes to the local government where the riverboat docks or where the casino is located. The state keeps 10% to 45%, depending on how much revenue the casino generates.
For the Chicago casino, the city’s one-third take of post-payout revenue would be directed to severely underfunded police and firefighter pension plans.
In addition to those taxes, the city casino operator also would have to pay a $250,000 application fee upfront, a $15 million “reconciliation” fee when the license is issued and up to $120 million in gambling position fees — which cost $30,000 each.
The casino is authorized to have up to 4,000 gambling positions — such as slot machines and blackjack tables — with some slot machines possibly going to O’Hare International and Midway airports.
After three years, the casino would have to pay a fee equal to 75 percent of its post-payout revenue from its most lucrative 12-month period, minus the fees paid upfront per gaming position. The study estimates that payment could total as much as $500 million.
Now why would the proposed casino owners pay that?
With the report pointing to the merits of a downtown location over the South and West side sites, Lightfoot also will face questions about her commitment to her campaign promise to bring development and jobs to struggling neighborhoods.
Still, the governor and mayor each attempted to cast the study in a positive light and vowed to work with lawmakers on any necessary changes to the law.
Well, looks like the casino will go…………..downtown.
Maybe you know some little places to go to
Where they never close
Just listen to the music of the traffic in the city
Linger on the sidewalk where the casino signs are pretty
How can you lose?
The House always wins, but what do you care
When you can go……..
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