Posted on: January 22, 2024, 04:21h.
Last updated on: January 22, 2024, 12:42h.
The Golden Nugget Danville Casino opened last May in the Illinois town and since then, revenue from property has been a boon to local charities and previously ailing public pensions.
While the city forecast $2 million in yearly receipts in casino revenue alone, the Golden Nugget delivered $1.332 million in just six months of operation, indicating the venue could surpass prior estimates for Danvile revenue.
Golden Nugget Danville operated under temporary licenses until last October when it was granted permanent status by the Illinois Gaming Board (IGB). The casino is a joint venture between the Wilmot family and Tilman Fertitta, whose Fertitta Entertainment Inc. (FEI) controls the Golden Nugget brand.
Already, the new gaming venue is contributing to “funding for riverfront development, city sewer upgrades, construction of an addition to the Boys and Girls Club and paying down city fire and police pensions,” reports Dave Hinton for The News-Gazette.
Golden Nugget Providing Needed Assist to Pensions
Illinois is home to some of the most underfunded, highest obligation public pension systems in the US. Though dwarfed by Chicago — the state’s largest city — Danville isn’t immune to that trend.
It’s estimated that 80 cents of every $1 in casino revenue that flows to Danville is being allocated to shore up firefighter and police retirement plans. Danville is subject to an Illinois mandate that its firefighter and police pensions be 90% funded by 2040. It’s estimated that annual contributions from Golden Nugget Danville could amount to 10% to 12% of the city’s budget, potentially providing significant relief for the strained retirement plans.
Mayor Rickey Williams, Jr. said the plan is to get 100% funding by 2040, beating the 90% requirement. That’s an ambitious goal, and one that’s likely to require contributions from sources beyond the Golden Nugget.
With the help of the new casino and some other increased revenue sources, funding for Danville’s police pensions rose 1.93% in the 2022-23 fiscal year while funding for the firefighters’ retirement program rose 1.5%.
Danville also earns $1 for each person that enters the Golden Nugget, according to the News-Gazette.
Not All New Illinois Casinos Delivering
While the Golden Nugget Danville Casino is delivering the goods in terms of help to Danville’s budget, retirement plans, and local charities, the same is not true of all new Illinois gaming venues.
The temporary version of Bally’s Chicago, which is located in Medinah Temple in the River North neighborhood, drove just $3.1 million in revenue to the Windy City from its September opening through the end of last year. That was well short of the $12.8 million expected.
Bally’s Chicago is expected to deliver exponentially higher revenue growth for the city over the next two years and when it enters its permanent venue in 2026. However, that effort may be delayed due to water pipe issues at the Freedom Center — site of the permanent gaming venue – where the hotel tower was originally supposed to be constructed.
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