>>> PLACE YOUR BETS.

THE FIRST CITY CASINO OPENED ON SATURDAY AT 8:00 A.M.

IT WAS HOME TO THE SHRINERS CIRCUIT AND THEN A BLOOMING DALE'S STORE BUT NOW IT IS A VALLEY CASINO AS PLANS CONTINUE FOR THE PERMANENT RIVER FRONT LOCATION IN 2026.

CITY LEADERS HOPE THE WINNINGS EXTEND TO THE PEPGZ SITUATION.

TAX REVENUE IS SLATED TO FUND THE UNDERFUNDED ACCOUNTS.

LET'S TALK ABOUT THE WINNERS AND LOSERS, ALDERMAN BRIAN HOPKINS WHOSE AREA INCLUDES THE NEIGHBORHOOD.

PAST PRESIDENT OF RIVER WEST AND MEMBER OF THE CASINO ADVISORY COUNSEL CREATED BY FORMER MAYOR AND PROFESSOR DEBORAH CAROL, DIRECTOR OF FINANCE RESEARCH CENTER AT THE UNIVERSITY OF ILLINOIS PLANNING EARNING COLLEGE.

THANK YOU FOR BEING AT OUR TABLE.

NO BLACKJACK OR CARD JAMES HERE JUST A LOT OF GOOD DISCUSSION.

LET'S TALK ABOUT THE LATEST SHOOTING IN RIVER NORTH NEAR THE CASINO.

WHAT DO WE KNOW?

>> WE WERE HOPING TO GET THROUGH THE WEEKEND WITHOUT ANY INCIDENT BUT UNFORTUNATELY THAT WAS NOT THE CASE.

THERE IS NO DIRECT CONNECTION BETWEEN THE SHOOTING AND ACTIVITY IN THE CASINO.

WE POURED OVER THE EXTENSIVE VIDEO AND WE HAVE CAMERAS INSIDE AND OUTSIDE OF THE CASINO.

IT DOESN'T APPEAR THAT EITHER OF THE PARTIES ENGAGED IN THE SHOOTING WERE CONNECTED TO THE SHOOTING.

>> AND VALLEY DID PUT OUT A STATEMENT SAYING IT HAD NOTHING TO DO WITH THE CASINO.

JOHN BOSSY, ARE YOU WORRIED THAT THE CASINO COULD BRING INCIDENTS OF CRIME?

>> I THINK ANY OPPORTUNITY THAT BAD PEOPLE HAVE, BAD ACTORS HAVE TO GO AND TAKE ADVANTAGE OF SOMETHING NEW, THEY WILL DO THAT.

I HAVE A LOT OF FAITH AND HOPE IN PEOPLE OF CHICAGO AS WELL AS OUR LEADERS AND POLITICIANS AS WELL AS THE POLICE DEPARTMENT.

>> WHAT A LOT OF CASINO OWNERS HAVE SAID IS THAT THEIR PLACES ARE MORE SECURE THAN A NORMAL BUILDING BECAUSE THEY HAVE SECURITY CAMERAS AND GUARDS JUST FOR THAT REASON.

PROFESSOR CAROL, FIRST WEEKEND IN THE BOOKS SO TO SPEAK.

WHAT IS A REALISTIC EXPECTATION AS TO THE ECONOMIC IMPACT THIS CASINO COULD PROVIDE?

>> SURE.

MANY OF THOSE WHO TRY TO SELL THE PROSPECTS OF CASINOS DO THAT ON THE PROSPECTS OF ECONOMIC DEVELOPMENT AND ECONOMIC GROWTH.

THERE IS AN A LOT OF PROMISE FOR INCREASED JOBS, INCREASED RETAIL SALES, AND THEREFORE INCREASED REVENUE TO STATE AND LOCAL GOVERNMENTS.

I THINK THE THING THAT IS IMPORTANT TO KEEP IN MIND IS FOR THE CASINO TO TRULY HAVE AN IMPACT ON THE CITY, IT HAS TO ATTRACT INDIVIDUALS WHO WOULD NOT OTHERWISE COME TO THE CITY IN THE ABSENCE OF THE CASINO OR TO CAPTURE THE --.

>> DO YOU THINK THAT THE CASINO WOULD DO THAT?

>> I THINK THE JURY IS STILL OUT ON THAT.

IF YOU LOOK AT ALL OF THE RESEARCH ON CASINOS IN GENERAL, A LOT OF IT SAYS THE ECONOMIC IMPACT IS STILL UNCERTAIN.

CERTAINLY, THERE IS THE POTENTIAL TO IMPROVE REGIONAL ECONOMIES WHERE THEY OPERATE.

A LOT OF THE OTHER RESEARCH SUGGESTS THAT IT IS A SHIFTING AROUND OF THE INCOME WITHIN INDUSTRIES.

>> JOHN, YOU ARE A LOCAL RESIDENT AND YOU HAVE BEEN THERE TWICE.

WHAT WAS IT LIKE?

>> IT WAS BEAUTIFUL INSIDE, A LOT OF ACTIVITY, GREAT ENERGY THERE.

I WAS THERE LAST NIGHT, WENT THERE AFTER THE FOOTBALL GAME, A LOT OF PACKER FANS.

>> MAYBE SAD BEARS FANS IF THEY PLACED A BET ON THE BEARS.

BUT IT IS NOT A SPORTS CASINO.

>> NOT YET.

>> THEY WOULD BE TRYING TO WIN IT BACK.

ALDERMAN HOPKINS, YOU HAVE HAD CONCERNS ABOUT THIS PROCESS.

ARE THE CONCERNS STILL THERE?

WHAT ARE THOSE CONCERNS?

>> IF ANYTHING, THEY ARE EXACERBATED RIGHT NOW.

WHEN YOU LOOK AT THE PROCESS THAT IS SELECTED BOTH VALLEY AS THE OPERATOR OF THE SITE, THEY WERE NOT THE BEST OPERATOR OR THE BEST SITES.

SINCE WE MADE THIS CHOICE, BALLY STOCK IS DOWN 27% IN THE LAST YEAR.

THEIR MARKET CAPITALIZATION IS ABOUT $700 MILLION.

THAT IS LESS THAN HALF OF THE TOTAL COST REQUIRED TO BUILD OUT THE CHICAGO SITE.

THERE ARE REAL QUESTIONS ON WHETHER OR NOT THEY CAN EVEN DO THIS.

THEY DIDN'T HAVE AS BIG OF AN OPENING WEEKEND AS THEY THOUGHT.

I DON'T KNOW WHERE THE MONEY WILL COME FROM FOR THE OBLIGATION TO BUILD THE NEW STRUCTURE.

>> PROFESSOR CAROL, WHAT ABOUT THE CONCERNS GIVEN THAT BALLY ITSELF IS STRUGGLING?

HOW IS THE INDUSTRY DOING OVERALL?

>> I THINK WE HAVE SEEN OVER TIME, ESPECIALLY OVER THE PAST DECADE, WE HAVE SEEN A LOT OF GROWTH IN GAMING ACROSS THE U.S.. BEFORE 1991, THERE WERE ONLY TWO PLACES, NEVADA AND ATLANTIC CITY WHERE CASINO GAMING OCCURRED.

SINCE THAT TIME, ABOUT HALF THE STATES HAVE STATE SPONSORED CASINOS.

THE SUPREME COURT'S DECISION IN 2018 THAT ESSENTIALLY REVERSED THE BAN, IT HAS EXPANDED IN 28 STATES AS WELL.

WE HAVE SEEN A LARGE EXPANSION.

WHEN WE LOOK AT THE REVENUE THAT IS GENERATING, IT IS A SMALL PORTION OF THE CITY OR STATE'S REVENUE.

>> AND THE CITY IS EXPECTING A LARGE PIECE TO GO TO THE PEPGZ FUND BUT WE KNOW THAT IT WILL TAKE MORE THAT CASINO REVENUE TO SHORE THOSE UP.

WHAT ABOUT TRAFFIC?

>> LAST NIGHT, IT LOOKED AT IF IT WAS COVERED PRETTY WELL.

OLMC WERE THERE.

I TALKED TO A COUPLE OF GUYS WORKING THERE.

IT LOOKED LIKE THEY HAD IT HANDLED.

>> WHAT ABOUT YOU, ALDERMAN?

ARE YOU WORRIED ABOUT THE TRAFFIC PROJECTION?

>> YEAH, I WAS OUT THERE, TALKING TO THE PATROL OFFICERS WHO WERE ON SITE.

IT WENT PRETTY SMOOTH ASIDE FROM THE SHOOTING IN THE OVERNIGHT HOURS.

THE DEPARTMENT HAS THEIR TRAFFIC CONTROL PIECE IN PLACE.

WE DON'T KNOW IF IT IS SUSTAINAL.

BALLY HAS ONLY GIVING US $2 MILLION TO COVER THE COST OF SECURITY.

WE WILL SPEND THAT QUICKLY.

I DON'T KNOW IF WE CAN SUSTAIN THE LEVEL OF PRESENCE FROM THE TRAFFIC PATROL AIDS AND THE OFFICERS ON THE GROUND.

IT IS COSTLY TO HAVE THAT PRESENCE.

>> THE PERMANENT SITE IS AT THE FREEDOM CENTER.

THE FREEDOM CENTER IS STILL THERE AND THERE IS NO TEARING DOWN OF THAT OR CONSTRUCTION.

2026 IS THE PLANNED OPENING DATE.

DO YOU THINK THIS MASSIVE DEVELOPMENT WILL BE BUILT BY THEN?

>> I DON'T SEE IT.

I DON'T KNOW WHERE THEY GET THE CAPITAL OR FINANCE FROM.

THIS IS A STRUGGLING COMPANY.

THEY HAVE BITTEN OFF MORE THAN THEY CAN CHEW.

THE BALLY NAME IS A LEGACY NAME IN THE GAMING INDUSTRY BUT THE PRIVATE EQUITY FUND THAT BOUGHT THIS A FEW YEARS AGO HAD NO EXPERIENCE IN GAMBLING OR BUILDING MULTIBILLION DOLLAR CONSTRUCTION PROJECTS.

WITH A LACK OF EXPERIENCE, LACK OF CAPITAL AND FINANCING, I DON'T KNOW SEE WHERE THEY GET IT TOGETHER IN A THREE YEAR PERIOD.

>> AND PROFESSOR CAROL, THIS IS A MARKET WHERE THERE ARE SO MANY NEW GAMING OPPORTUNITIES.

YOU HAVE HARD ROCK CASINO, YOU HAVE ALL OF THE SPORTS BOOKS GOING UP.

YOU HAVE THE CASINO BILL PASSED IN THE STATE THAT IS AUTHORIZING CASINOS IN THE SUBURBS AND DOWN STATE.

ARE THEY GOING TO CANBLEIZE THEMSELVES HERE?

>> QUITE LIKELY YES.

WHEN YOU INCREASE NEW OPPORTUNITIES FOR GAMING, THE EARLY ADOPTERS THAT HAVE BEEN ESTABLISHED TEND TO LOSE REVENUE AS A RESULT OF THE INCREASED COMPETITION.

>> WHAT WOULD BALLY HAVE TO DO TO STAND OUT IN THE PACK HERE, TO FIELD CUSTOMERS FROM OTHER CASINOS?

>> I THINK IT IS ALL ABOUT THE CUSTOMER EXPERIENCE.

THE CITY OF CHICAGO OFFERS A LOT OUTSIDE OF JUST THE CASINO.

SO THE GOAL OF IS TO ATTRACT THE VISITORS INTO THE CITY SO THEY CAN ENJOY THE PARKS, MUZEEMZ, HOTELS, RESTRUPTS, AND THAT'S WHAT CREATES ECONOMIC GROWTH.

>> AND RIGHT NOW, THERE IS HOPE THAT THE TEMPORARY CASINO WOULD HELP BUSINESSES AROUND THERE, RESTAURANTS, THE STRUGGLING RETAIL OPERATIONS ON MICHIGAN AVENUE WHERE THERE IS A 30% VACANCY RATE.

ANY CHANCE THAT WOULD HAPPEN?

>> I THINK THERE IS HOPE FOR THAT.

I THINK RETAILERS NEED TO REACH OUT AND START WUSHING TOGETHER.

WE NEED CIVIC LEADERSHIP ON THAT WHERE PEOPLE ARE GETTING TOGETHER AND WORKING TOGETHER.

>> HOW DO YOU TURN THE CUSTOMERS AT THE CASINO INTO REVENUE FOR MICHIGAN AVENUE AND RESTAURANTS AND BUSINESSES?

>> THAT IS A GREAT QUESTION.

I DON'T KNOW OF ANYONE WHO HAS MET THE CHALLENGE.

LOOK AT DOWNTOWN AURORA, ROCKFORD, WHERE THE OTHER CASINO, THE PARADISE, THEY HAVE ALWAYS STRUGGLED TO LIVE UP TO THE PROMISE OF A SPILL OVER EFFECT WHERE NEARBY ENTITIES AND ATTRACTIONS CAN BENEFIT FROM THE CASINO.

INSTEAD, THE CASINO TENDS TO SUCK IN ALL OF THE REVENUE AND BECOME THE DOMINANT FORCE, LEAVING OTHERS TO STRUGGLE.

>> IS THAT WHAT HAPPENS IN THE IMMEDIATE ECONOMY?

>> IT CAN BUT NOT NECESSARILY.

YOU ARE TRYING TO BRING NEW GAMERS, PEOPLE WHO WOULD LIKE TO HAVE THE EXPERIENCE IN ADDITION TO HOW THEY ARE ALREADY SPENDING THEIR MONEY.

BUT THERE IS A RISK THAT CONSUMERS WILL SUBSTITUTE THE GAMING ACTIVITIES FOR OTHER ACTIVITIES LIKE GOING OUT TO DINNER OR GOING TO THE MOVIES.

>> JOHN BOSQUEA, IF THIS PERMANENT LOCATION IS NOT BUILT BY 2026, WITH WOULD THEY SUPPORT THE IT TENSION OF THE TEMPORARY SITE?

>> I'M IN RIVER WEST.

THE FOLKS IN RIVER NORTH WILL HAVE TO ANSWER THAT.

I WILL ADD TO THE MICHIGAN AVENUE ARGUMENT.

HAVING THOSE FOLKS WILLIAMSBURG TOGETHER, ESPECIALLY GOING AFTER THE TURF, THE MIDWESTERNERS, INTERNATIONAL TURF, THAT IS NEW MONEY COMING INTO THE CITY.

YOU NEED TO BE ABLE TO ATTRACT THAT AND MAKE THAT A VERY FAVORABLE EXPERIENCE.

>> YOU HAVE BEEN THERE TWICE.

CAN I ASK YOU HOW YOU HAVE DONE?

>> I ONLY BET THE FIRST NIGHT AND I WAS THERE WITH SOME FRIENDS AND PEOPLE IN THE INDUSTRY.

I DID JUST FINE, I BROKE EVEN.

LAST NIGHT I DIDN'T PLAY.

I'M NOT MUCH OF A GAMBLER.

>> I GET A SENSE OF WHERE YOU ARE BETTING ON THE SUCCESS OR