New casino coming to south suburbs confident it will hit jackpot despite a crowded market

Just a year ago, a plot of land sat empty on South Halsted Street.

Now it’s about to be the site of one of the tallest buildings in Chicago’s south suburbs.

The Wind Creek Casino and Hotel will make its debut by late summer, straddling East Hazel Crest and Homewood.

“It will be a nice addition to the Southland. The opportunities for employment, both construction as well as hospitality and the casino operations, are enormous,” Homewood Mayor Rich Hofeld said.

But casino lovers already can hit the slots and card tables at seven casinos in Chicago and the suburbs. Revenue has been on the decline at Illinois casinos over the past decade, according to the nonprofit government research organization the Civic Federation.

The temporary Bally’s in downtown Chicago is so far not living up to expectations. After a delayed opening in September, it brought in just over $3 million in tax revenue in 2023. That’s nearly $10 million short of what former Mayor Lori Lightfoot’s administration projected. Revenue has improved in the new year, growing to $9.3 million, a 9% increase, in adjusted gross receipts, according to the Illinois Gaming Board.

And just across the state line, Northwest Indiana has four casinos, which raises concerns about whether a casino glut permeates the region.

Ed Feigenbaum, who monitors gaming for Indiana Gaming Insight, said competition is a concern for all involved.

“There will certainly be market-based competition, and there will certainly be market-based cannibalization,” Feigenbaum said. “The market is not infinite.”

Promise of the Wind Creek Casino and Hotel

Wind Creek will feature a 16-story, 252-room hotel with a restaurant on the top floor and employ up to 800 people. In addition to promising that 3% of local tax revenue will go to 42 neighboring towns, Wind Creek is promising other community benefits.

East Hazel Crest plans to use a portion of the funds it receives to develop a community benefits fund to provide college scholarships and pay for cancer screenings for low-income families.

“That will have a great financial impact to our town,” East Hazel Crest Village Mayor Thomas Brown said. “This will be a really good economic venture for Wind Creek; they wouldn’t have spent $600 million building this if they didn’t think it would be a financial success.”

Wind Creek officials tout the jobs and boost to the local economy — and General Manager Roger Kuehn said he isn’t worried the market is getting too congested or that the new casino will draw away from Rivers Casino in Des Plaines near O’Hare Airport or Bally’s in downtown Chicago.

Manuel Martinez / WBEZ

As for Indiana, he is looking just across the border with confidence that Wind Creek can lure away customers, most of whom come from Illinois.

Casino competition in Indiana

Hard Rock Casino in Gary will be Wind Creek’s main competitor since it’s the closest, a mere 12 miles away along the same stretch of highway.

Hard Rock Casino opened nearly three years ago and has quickly become Indiana’s most profitable of the state’s 11 casinos. It’s now bringing in entertainers including rapper Flo Rida, singer Diana Ross and comedian George Lopez.

But Feigenbaum said Wind Creek may already have one major advantage over Hard Rock.

“They will have a hotel on property with more than 250 hotel rooms that they can use to keep people captive,” Feigenbaum said. “Hard Rock does not have a hotel. Horseshoe Casino Hammond does not have a hotel.”

Officials with Hard Rock and Horseshoe Casino in Hammond declined to comment.

Gary Mayor Eddie Melton said Hard Rock doesn’t have to worry about Wind Creek as competition.

Manuel Martinez / WBEZ

“I’ve talked to the Hard Rock Casino. They feel very confident that [Wind Creek] is not going to make a significant impact,” Melton said. “Anytime there is something new, folks are going to support it. But in Northwest Indiana, I’m pretty sure this market can sustain itself. … I don’t think (Wind Creek) will be able to compete to the level of the name and brand recognition that Hard Rock brings to the table.”

Despite the competition and declining casino tax revenues over the past decade, Illinois has no plans on scaling back gaming.

The state is expanding the use of video gaming and opening another casino at Hawthorne Race Course in suburban Cicero in hopes of pushing its $1.5 billion in casino tax revenue from last year even higher.

Michael Puente is part of WBEZ’s Race Communities and Class Team.