No progress made

Chicago Mayor Lori Lightfoot has failed in her latest attempt to secure a tax break for a planned city-owned casino.

She recently visited Springfield, the capital of Illinois, to ask lawmakers to consider easing the current tax scheme that is in place. The reason Lightfoot is seeking such a tax break is due to the results of a feasibility study that was conducted in August.

Outcomes of the feasibility study

The feasibility study was completed by Union Gaming, a Las Vegas-based firm, after being commissioned by the Illinois Gaming Board.

gaming revenue generated at this casino would effectively be subject to a tax rate of 72%

The conclusion of this feasibility study was that casino operators would not have an interest in investing in a casino resort in Chicago due to the hefty tax scheme.

As per the recent gambling expansion bill in the state, the gaming revenue generated at this casino would effectively be subject to a tax rate of 72%.

Mayor Lightfoot is still optimistic

Lightfoot subsequently proposed an amended tax scheme to the Illinois lawmakers, but to no avail.

Speaking about her efforts, Lightfoot said: “We feel like things are moving forward in a positive direction, but we’ve got to get the language finalized and get it to the respective chambers so that legislators can see what the outlines of the legislation look like.”

Breakdown of the current tax scheme

When factoring in all of the various operating expenses associated with a casino, such as utilities, marketing and payroll, Union Gaming believes that with the current tax scheme, a 1% profit is all that could be achieved by a Chicago casino.

However, with the likes of debt servicing, any such profits would be instantly eroded away, which poses a major issue for getting this casino project off the ground.

Union Gaming believes that with the current tax scheme, a 1% profit is all that could be achieved

Despite not making any progress so far, Lightfoot believes that an agreement can be secured. However, with the fall session of the Illinois General Assembly being adjourned today, this issue will have to be parked for some time.

Bill signed in July

This new casino was made possible following the signing of the gaming expansion bill in July by Governor J.B. Pritzker. It also gives the green light for the ten riverboat casinos in the state to set up land operations.

As part of this bill, sports betting has also been legalized, with licensing applications set to begin in December.