Chicago Slot Machine Company
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A new Chicago casino feasibility study projects that installing 500 slot machines at O’Hare and Midway airports could rake in $37 million annually. That is more than the amount generated at Las Vegas’ McCarran International Airport, which has almost triple the number of slots.
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Union Gaming Analytics, a boutique investment bank and advisory firm that carried out the study, worked on the assumption that each Chicago terminal slot could bring in $200 per day. This would bring the annual gross revenue from the suggested 500 machines to about $36.5 million.
The study says that given the Chicago metro area is already well penetrated, in terms of gaming positions, a casino within the City of Chicago is unlikely to need all 4,000 slot machines to achieve optimal revenues.
“As such, greater total revenues and taxes would be achieved by [allocating] a few hundred slot machines to Midway and O’Hare airports,” the study says.
Outperforming Las Vegas Airports
In drawing up revenue assumptions, Union Gaming Analytics studied airports in Nevada, the only comparable market with slot machines within the airport. Nevada’s two largest airports, McCarran in Las Vegas and Reno Tahoe, currently operate 1,475 and 240 slots, respectively, or approximately one slot machine per 15,700 arriving passengers, Union Gaming Analytics’ study says.
The researchers said Nevada provided a proxy for the potential performance of slot machines at Midway and O’Hare. The study then says it is expected that slot machines at airports in Chicago would be used similarly to those in Nevada, namely as an option for some travelers to pass time.
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Ultimately, the study concluded, slot machines at Chicago airports should perform notably better than those in Nevada’s airports. Free las vegas slots to play online.
Union Gaming Analytics said they expected slot machines to perform better in Chicago than in Nevada because in the latter, there was low utilization of slot machines which led to low revenues. This was because visitors to Las Vegas would rather play at a full-fledged casino with more attractive gaming options than at the airport.
The report further postulates that departing passengers from Las Vegas would typically have already exhausted their gaming budgets, and local residents using the airport have more convenient gaming options available to them.
To buttress the above points, the study found that revenue from slot machines at the Nevada airports generated revenue well below the state’s average of $151 taken from gamblers daily at each machine.
“With respect to Chicago, slot machines at airports should hold greater appeal to these same three categories, especially when contemplating departing and/or connecting passengers – both domestic and international – as they are a captive audience,” the study said.
O’Hare was ranked as the nation’s busiest airport in 2018. The Chicago Sun Times reported that nearly 40 million commercial travelers passed through O’Hare in 2018, compared to 23.7 million at McCarran and 2 million at Reno-Tahoe. Nearly 10.7 million people flew to or from Midway.
Having slot machines at the airports is quite a tantalizing prospect, with Michael Wenz, an economics professor at Northeastern Illinois University, being quoted by Casino.org saying “airport slot machines seem like a very well-targeted way to raise gambling tax revenue.”
Wenz added that many of the punters will be non-residents, “and relative to a casino or the small slot machine parlors, it isn’t likely that the airport will increase the incidence of problem gaming. There is a possibility that this will cannibalize some of the other revenues from the airport, but the net effect on tax revenues should be very positive in any case.”
Casino could be onerous from tax perspective
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Although this may be good news for punters in Chicago, the Union Gaming Analytics report also has some bad news. The report says a casino in Chicago may not be as financially feasible as initially estimated.
The gaming expansion legislation that allows for a casino in the City of Chicago is “very onerous
from a tax and fee perspective”, the report said.
The study further says Illinois law, which allows for massive gambling expansion, features the highest effective gaming tax and fee structure in the country. The legislation, therefore, makes it difficult to finance a Chicago casino and generate profits.
Chicago Mayor Lori Lightfoot has since said they would re-examine the 72 percent effective tax rate.
Lightfoot said the study confirmed concerns about the tax structure passed by the legislature, but was optimistic this could be addressed.
“We look forward to working with the governor and legislative leaders to revise the legislation and ensure a new casino will be beneficial for Chicago’s communities and the entire state,” Lightfoot said in a statement following the release of the feasibility study.
The City of Chicago hopes a casino will help generate revenue to pay for the underfunded police and firefighter pension systems. The City of Chicago also forecasts that a Chicago casino will create thousands of jobs as well as contracting opportunities for the community.
Gaming capital of the Midwest
Earlier this year, Illinois Governor J.B. Pritzker approved a new law that increased the number of state-sponsored gambling “positions” — seats to place a bet inside a casino, bar or racetrack — from almost 44,000 to nearly 80,000. It is projected that within two years, Illinois could have more than 7,000 video gambling establishments, 5,000 lottery-like sports betting kiosk locations, 16 casinos, five racinos and online sports gambling accessible on millions of mobile phones.
The new law allows for video slot and poker machines at Chicago’s airports, O’Hare and Midway.
With the law expanding gambling in Illinois, the state is on its way to being the gambling capital of the Midwest.
The state has set aside $6.8 billion in this year’s budget to help residents cope with gambling addiction. This is a 750 percent jump from the $800,000 that Illinois had regularly set aside to help people with gambling addictions, Healthcare Weekly reported.
Previously, Illinois faced criticism that it was not doing enough to help people with gambling addictions.
Tags
Chicago Airport slot machinesChicago casinoChicago casino taxChicago slot machineO’Hare slot machinesIndustry | Interactive entertainment |
---|---|
Fate | Acquired by Hilton |
Founded | January 10, 1932; 88 years ago |
Founder | Raymond Moloney |
Defunct | December 18, 1996; 23 years ago |
Headquarters | Chicago |
Products | Pinball slot machines later expanded into casinos, video games, health clubs, and theme parks |
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Bally Manufacturing, later renamed Bally Entertainment, was an American company that began as a pinball and slot machine manufacturer, and later expanded into casinos, video games, health clubs, and theme parks. It was acquired by Hilton Hotels in 1996. Its brand name is still used by several businesses with some trademark rights, most notably Bally Technologies and Bally's Corporation.
History[edit]
The Bally Manufacturing Corporation was founded by Raymond Moloney on January 10, 1932, when Bally's original parent, Lion Manufacturing, established the company to make pinball games. The company took its name from its first game, Ballyhoo. The company, based in Chicago, quickly became a leading maker of the games. In the late 1930s, Moloney began making gambling equipment, and had great success developing and improving the mechanical slot machines that were the core of the nascent gaming industry. After manufacturing munitions and airplane parts during World War II, Bally Manufacturing Corporation continued to produce innovations in flipperless pinball machines, bingo machines, payout machines and console slot machines through the late 1950s. They also designed and manufactured vending machines and established a coffee vending service. The company made a brief venture into the music business with their own record label, Bally Records.[1]
Moloney died in 1958, and the company floundered briefly. With the financial failure of its parent company, Bally was bought out by a group of investors in 1963. Throughout the 1960s, Bally continued to dominate the slot machine industry, cornering over 90% of the worldwide market by the end of the decade. In 1964, Bally introduced the first electromechanical slot machine in 1963, called the 'Money Honey.', Bally became a publicly traded company and made several acquisitions, including German company Guenter Wulff-Apparatebau (renamed Bally Wulff) and Midway Manufacturing, an amusement game company from Schiller Park, Illinois.
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The 1970s[edit]
In the late 1970s, Bally entered the casino business when New Jersey legalized gambling in Atlantic City. This effort moved forward even though the company was temporarily unable to attain a permanent license for the completed casino. During this period, company head William T. O'Donnell was forced to resign because of alleged links to organized crime. Prior to this, O'Donnell strenuously denied any such links.[2] For example, when questioned at the Moffitt Royal Commission (the NSW Clubs Royal Commission) - an investigation held New South Wales, Australia - on alleged criminal activities with US and Australian criminals, he admitted that Genovese Mafia boss, Jerry Catena (Gerardo Catena), once owned shares in the business, 'but I bought him out.'[2] He also denied knowing Chicago mobster, Joseph Dan Testa, even though Australian Police described Testa 'as a representative of Bally who visited Australia.'[2]
The company opened the Park Place Casino & Hotel on December 29, 1979.[3][4] Also in the late 1970s, Bally made an entry into the growing market for home computer games. The Bally Professional Arcade, as the machine was called, had advanced features for the time. These included a palette of 256 colors and the ability to play 4-voice music. The machine also shipped with a cartridge that allowed users to do a limited amount of programming on the machine themselves (using the BASIC language), and record their creations on cassette tape. The machine's price point was above the Atari 2600 (its major competitor), and it had a much more limited set of available games. Despite a loyal following, it failed to compete successfully. During the 1970s and early 1980s, Midway became a primary source of income for Bally as it became an early arcade video game maker and obtained the licenses for three of the most popular video games of all time: Space Invaders, Pac-Man and Ms. Pac-Man.[3]
The 1980s[edit]
By the mid-1980s, the company again had a strong balance sheet and began buying other businesses including the Six Flags amusement park chain in 1983, and the Health and Tennis Corporation of America. The health club division, under 'Bally Total Fitness', grew during the 1980s and 1990s. The company also purchased several casinos, including the MGM Grand Hotel and Casino on the Las Vegas Strip (which was subsequently re-branded as Bally's Las Vegas), The MGM Grand Reno (Reno, Nevada) and the Golden Nugget Atlantic City which was branded Bally's Grand and then later 'The Grand-A Bally's Casino Resort'. This expansion quickly took its toll on the company's finances, and Bally was soon forced to sell off several divisions, including Six Flags and Bally-Midway. The pinball division, along with Midway, was acquired by Williams Electronics in 1988.
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The 1990s[edit]
In 1990, Bally came under new management as its largest shareholder, Arthur Goldberg, was appointed chairman and began a restructuring process.[5] By 1993, the company had sold off several divisions and used the proceeds to pay down debts, including the slot machine division (which became Bally Gaming International, an independent company); Scientific Games, a maker of lottery equipment; Bally's Reno; and exercise equipment maker Life Fitness.[6] The Aladdin's Castle chain of video arcades was sold that year to Namco, and was renamed as Namco Cybertainment.
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The company opened Bally's Saloon & Gambling Hall, a riverboat casino in Mhoon Landing, Mississippi in December 1993.[7][8] It was moved to Robinsonville in 1995 and became part of a joint venture with Lady Luck Gaming.[9]
In 1994, the company changed its name to Bally Entertainment, to reflect its focus on the casino business and the fact that it no longer had any manufacturing operations.[10][11] It also announced that the health club business would be spun off to shareholders, to further narrow Bally's focus on casinos.[11] The spin-off was completed in January 1996, with Bally Total Fitness becoming a separate company.[12][13]
In May 1995, Bally Entertainment announced plans to develop Paris Las Vegas, a new casino hotel next to Bally's Las Vegas. The project would eventually begin construction in 1997 and open in 1999 at an estimated cost of $760 million.
In June 1996, Bally agreed to be acquired by Hilton Hotels Corporation.[14] The sale was completed on December 18, 1996, with Hilton paying $3 billion ($2 billion in stock plus $1 billion in assumed debt).[15] Later, Hilton's casino division, including the former Bally properties, was spun off as Park Place Entertainment (later Caesars Entertainment, Inc.), which was acquired in 2005 by Harrah's Entertainment (later Caesars Entertainment Corp.).
The name[edit]
Many casinos and businesses worldwide took on the Bally name and logo in the maze of ownership, division spin-offs and licensing agreements.
Midway, and—after buying Midway—Williams, continued to use the Bally name for its pinball games, until WMS Industries (the parent company of Williams) ceased pinball production in 1999. On March 31, 2005, WMS Industries struck a deal with Australian company The Pinball Factory to give them a license for the intellectual properties and the rights to re-manufacture former Bally/Williams games in the field of mechanical pinball. In addition, The Pinball Factory also has bought the right to manufacture new games using the company's new hardware system under the Bally brand.
Alliance Gaming, which had bought Bally Gaming International in 1995, changed its name to Bally Technologies. Bally Total Fitness, gambling distributor Bally France, and arcade distributor Bally Pond still use the same 'Bally' logo though any formal business relationships, as of June 2007, are coincidental. The rights to use the name for casinos were sold by Caesars in 2020 to Twin River Worldwide Holdings, which then changed its own name to Bally's Corporation and said that it would rename most of its properties under the Bally's brand.[16]
The name is was mentioned in the song, 'Pinball Wizard' in the rock operaTommy and its soundtrack.
Pinball machines using the Bally brand[edit]
Select machines developed by Bally or Bally-Midway[edit]
- Amigo (1974)
- Ballyhoo (flipperless) (1932)
- Bally Baby (slot machine) (1932)
- Ballyhoo (flippers) (1947)
- Baby Pac-Man (1982)
- Blackwater 100 (1988)
- BMX (1982)
- Boomerang (1974)
- Bow and Arrow (1974)
- Capersville (1967)
- Captain Fantastic and The Brown Dirt Cowboy (1976)
- Centaur (1981) & Centaur II (1983)
- Cybernaut (1985)
- Dixieland (1968)
- Dogies (1968)
- Dungeons & Dragons (1987)
- Eight Ball (1977)
- Eight Ball Deluxe (1981)
- Embryon (1981)
- Evel Knievel (1977)
- Fathom (1981)
- Flash Gordon (1981)
- Fireball (1972)
- Fireball II (1981)
- Freedom (1976)
- Four Million B.C. (1971)
- Frontier (1980)
- Future Spa (1979)
- Gator (1969)
- Hi-Lo Ace (1973)
- Hokus Pokus (1975)
- KISS (1979)
- Lady Luck (1986)
- Lost World (1978)
- Mata Hari (1977)
- Monte Carlo (1973)
- Night Rider' (1977)
- Nip-It (1972)
- Nitro Ground Shaker (1978)
- Odds and Evens (1973)
- On Beam (1968)
- Mr. & Mrs. Pac-Man (1982)
- Paragon (1979)
- Playboy (1978)
- Power Play (1977)
- Shoot-A-Line (1962)
- Sky Divers (1964)
- Strange Science (1986)
- Strikes and Spares (1978)
- The Six Million Dollar Man (1978)
- Vector (1982)
- Wizard! (1975)
- Xenon (1980)
Developed by Midway[edit]
- The Addams Family (1992)
- Attack from Mars (1995)
- Black Rose (1992)
- Cactus Canyon (1998)
- The Champion Pub (1998)
- Cirqus Voltaire (1997)
- Corvette (1994)
- Creature from the Black Lagoon (1992)
- Doctor Who (1992)
- Dr. Dude and His Excellent Ray (1990)
- Eight Ball Champ (1985)
- Gilligans Island (1991)
- Harley-Davidson (1991)
- Indianapolis 500 (1995)
- Judge Dredd (1993)
- NBA Fastbreak (1997)
- The Party Zone (1991)
- Popeye Saves the Earth (1994)
- Radical! (1990)
- Revenge from Mars (1999)
- Safe Cracker (1996)
- Scared Stiff (1996)
- The Shadow (1994)
- Theatre of Magic (1995)
- Twilight Zone (1993)
- Who Dunnit (1995)
- World Cup Soccer (1994)
Developed by The Pinball Factory[edit]
The Crocodile Hunter Outback Adventure based on the wildlife documentary television series The Crocodile Hunter was in development by Australian pinball manufacturer The Pinball Factory under license from Bally. It was abandoned at the end of 2007 due to the death of the main character of the game, Steve Irwin, and never went into production.[17]
Slot machines[edit]
- Money Honey (1964)
- Big Top (1982)
- Jackpot Riot (1993)
- Blazing 7s (1993)

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Casinos[edit]
References[edit]
- ^'Bally Records'.
- ^ abc'Bally chief denies links with mafia'. The Age. 18 September 1973. Retrieved 8 October 2018 – via Google News.
- ^ abChristian Marfels; 2007, Bally: The World's Game Maker, 2nd ed., Bally Technologies Inc., Las Vegas ISBN978-1-4243-3207-6
- ^'Bally Manufacturing Corp'. Encyclopedia of Chicago. Retrieved 21 June 2007.
- ^P.J. Bednarski (November 13, 1990). 'Top exec quits as Bally revamps'. Chicago Sun-Times – via NewsBank.
- ^Debra Dowling (December 19, 1993). 'Goldberg whips Bally Gaming into shape'. The Star-Ledger. Newark, NJ – via NewsBank.
- ^Laurel Campbell (December 7, 1993). 'Adjacent casinos open in Tunica'. The Commercial Appeal. Memphis, TN – via NewsBank.
- ^'Bally's licensed to open in Tunica'. The Commercial Appeal. Memphis, TN. AP. December 4, 1993 – via NewsBank.
- ^Michelle Hillier (December 22, 1995). 'Bally's rolls upriver, reopens casino closer to Memphis crowds'. Arkansas Democrat-Gazette. Little Rock, AR – via NewsBank.
- ^Scott Ritter (March 18, 1994). 'Options help CEO's earnings'. The Star-Ledger. Newark, NJ – via NewsBank.
- ^ abDavid Dishneau (May 18, 1994). 'Bally gambling its games will outperform its gyms'. Akron Beacon Journal. AP – via NewsBank.
- ^'Bally spin-off final'. Chicago Sun-Times. January 10, 1996 – via NewsBank.
- ^Debra Dowling (September 19, 1995). 'Bally Entertainment pushing out its network of push-up centers'. The Star-Ledger. Newark, NJ – via NewsBank.
- ^Barry Meier (June 7, 1996). 'Hilton Hotels to buy Bally Entertainment for more than $2 billion'. Los Angeles Times. Retrieved 2019-03-14.
- ^Joe Weinert (December 19, 1996). 'Hilton and Bally close deal'. The Press of Atlantic City – via NewsBank.
- ^'Twin River Worldwide Holdings to become Bally's Corporation'. Delaware Business Times. October 29, 2020. Retrieved 2020-11-11.
- ^'Internet Pinball Machine Database: The Pinball Factory 'The Crocodile Hunter Outback Adventure''. www.ipdb.org.
- Galecki, Irek (2006), Slot Machines History, Online Casino Press, archived from the original on September 17, 2012, retrieved 2007-06-25
- Wilson, Mark R. (2005), 'Bally Manufacturing Corp.', Encyclopedia of Chicago, Chicago, Illinois: Chicago Historical Society, retrieved 2007-06-27
- Lawlor, Pat (1992), 'The Addams Family', Pinball Hall of Fame, Internet Pinball Database, retrieved 2007-06-25