A new study by boutique investment bank Union Gaming Analytics found that installing 500 slots at Chicago O’Hare International (ORD) and Midway International (MDW) could generate $37 million annually for the city and Chicago and state of Illinois.
The study largely focused on the prospects for casinos in and around the Chicago area, noting that those operations would face competition from casinos already in place in neighboring states.
But Union Gamin Analytics projects that slot machines at ORD and MDW should perform better than those already in place at Las Vegas McCarran International Airport (LAS) and Reno-Tahoe International Airport (RNO) as most travelers to those Nevada cities are likely headed to or from a local casino.
“We estimate there will be 500 slots available that could be deployed at O’Hare and Midway airports,” the study finds. “We have assumed a win per day on these slots of $200, which compares favorably to Nevada, which is the only comparable market that also has slot machines within airports. Based on an assumed win per day of $200, AGR (Adjusted Gross Revenue) at the airports could reach $37 million.”
Any slot machines at ORD or MDW would be run by the winning operator of the Chicago mega-casino bid and count against the 4,000 gaming positions that would be allotted to them. The study cautions that it may be a challenge attracting casino developers to the Chicago area because of the high taxes on gambling revenues included in the new state laws authorizing gaming in Illinois.
