Earlier this week, a group of Chicago aldermen decided not to move forward with a proposal to permit retail sports betting at the city’s stadiums, casting doubt on the future of Chicago stadium betting.
Mayor Lori Lightfoot recently suggested implementing a 2% tax on all facility betting profits in order to convince the councillors to support her. However, the alderman are not yet convinced and are requesting a city-commissioned report that proves the feasibility of having both venue sports betting and an Illinois casino.
Neil Bluhm, co-founder of Rush Street Gaming, has expressed worries that the introduction of stadium retail sportsbooks in Chicago could impact the revenue of the city’s casinos. Rush Street Gaming is behind two of the five casino proposals in the city.
He declared:
A person who gambles on tables and slot machines is likely to also participate in sports betting. This activity accounts for 20% of our business, based on real data.
Lightfoot retaliated, stating:
There are individuals who currently utilize sportsbooks within their own casinos and are trying to undermine them by issuing ominous warnings. However, they have failed to provide any compelling evidence that this will ultimately harm a Chicago game. We have not seen any proof to support their claims.
Lightfoot currently lacks sufficient support from key city officials.
According to the city’s estimates, annual tax revenue from Chicago stadium sportsbooks is projected to be between $400,000 and $500,000. Ald. Pat Dowell, Chair of the Council Budget Committee, described this amount as insignificant when compared to potential losses that casinos might face if the policy is enacted.
Rivers Casino lobbyist John Dunne predicts that the city stands to lose between $10 and $12 million in annual tax revenue if stadium sportsbooks are introduced.
We are facing a critical challenge in the near future.
History of bowl sports betting in Chicago
Illinois lawmakers passed the 2019 Sports Wagering Act to legalize sports betting in arenas. While not the first state to do so, this concept is still relatively new.
The Chicago Cubs and DraftKings wasted no time in seizing the opportunity. They reached an exclusive sports betting deal and are currently working on bringing a DraftKings Sportsbook to Wrigley Field.
It is also known that the United Center is interested in retail sports betting, although it does not currently have an exclusive agreement in place.
Moreover, being the owner of both the Bulls and White Sox, it is likely that Jerry Reinsdorf’s Guaranteed Rate Field is also interested in participating in the event.
Nevertheless, if the area concludes that permitting bowl sports betting will lead to a significant decrease in annual tax revenue, none of these potential benefits will materialize.
Who will receive the game registration in Chicago?
The city of Chicago has five requests available, with Rush Street and Bally’s each overseeing two, and Hard Rock also submitting a proposal.
Rush Street has been the most vocal critic of the bowl sportsbooks in Chicago, while Bally’s and Hard Rock have chosen to stay silent on the issue.
The businesses are set to unveil their game plans to consumers on December 16th. We have compiled all of the proposals here.
Lightfoot has expressed her goal of choosing a winning play in the first quarter of 2022.
