Chicago City Council members are intensifying efforts to legalize video gambling within the city, despite recent advisories from Mayor Brandon Johnson’s financial team suggesting that the potential earnings are not worth pursuing.
During the Council meeting on Wednesday, two ordinances aimed at supporting the legalization of video gambling were introduced, marking the Council’s last meeting before the August recess.
One ordinance seeks to authorize the installation of hundreds of video gambling machines at O’Hare and Midway Airports, while the other aims to lift the longstanding citywide ban on video gambling. This initiative is seen as a potential economic lifeline for struggling neighborhood bars and restaurants.
Alderman Gilbert Villegas (36th), chair of the City Council’s Committee on Economic, Capital and Technology Development, advocates starting the gambling initiative at Chicago airports, viewing it as a politically favorable move.
“The General Assembly has provided this opportunity through the casino bill. Yet, we’re not taking advantage of capturing dollars from one of the busiest airports in the country,” Villegas remarked. “This is a captive audience. People are there, in some cases, one or two hours before their flight. If there is a delay, there’s an opportunity to engage an audience that may not even be traveling to the city. They often have time to kill.”
If 400 video gambling terminals were installed at the airports, and each terminal earned $800 daily, it could generate an annual revenue of $116.8 million. The city would receive a portion of this income through gambling taxes and licensing fees.
Villegas’s ordinance suggests a structure for licensing that includes a “location license” fee of $10,000 along with $500 for each video gambling terminal, alongside a “terminal license” of $1,000 plus an additional $500 per terminal.
“This presents a chance to consider something that is not controversial. This is a new idea for generating revenue that would encounter less opposition,” Villegas added.
Meanwhile, Alderman Anthony Beale (9th) is advocating for a broader approach by proposing to legalize video gambling across the city.
His ordinance also includes a “location license,” but suggests a fee of $500, with a $1,000 fee per video gambling terminal and a “terminal license” of $500 plus $1,000 per terminal.
“We need to implement this citywide and at the airports. We need the revenue, and this administration has not shown a willingness to generate new revenue sources without impacting taxpayers,” Beale explained.
Last month, Chicago’s Chief Financial Officer, Jill Jaworski, released findings from a consulting study which projected that the annual revenue from video gambling could reach at most $10 million. The study indicated that legalizing video gambling could even result in financial losses for the city due to its potential effects on revenue from slot machines at the Chicago casino.
Beale remains undeterred by these findings.
“That’s due to their lack of willingness to collaborate with Springfield to modify the formula,” he stated. “I hope that by proposing these ordinances, it will finally encourage them to build a team aimed at changing the formula in a way that benefits the city of Chicago.”
In light of an estimated $1.2 billion budget shortfall and an additional $3 billion cut from federal funding, Beale stressed that every revenue opportunity should be pursued vigorously. He described the legalization of citywide video gambling as a significant prospect.
“It’s disheartening how they demand innovative revenue solutions while simultaneously rejecting straightforward options,” Beale commented. “This could be implemented quickly and easily. It’s a voluntary activity for individuals, unlike the recent surge in speed cameras throughout the city.”
Alderman William Hall (6th) announced that his revenue sub-committee will hold another hearing on Monday to further explore legalizing video gambling along with other ideas proposed by his colleagues.
Hall agrees with Beale’s perspective that increasing the number of video gambling terminals in Chicago could be beneficial for the city, but emphasizes that necessary regulations must first be established to curtail illegal practices in local establishments.
“Illegal sweepstakes machines act as unauthorized slot machines in many neighborhoods. We must put together a regulation package to address this issue,” Hall pointed out. “Many unauthorized machines are attracting players in gas stations, leading to cash exchanges that foster a harmful black market.”
Once unlawful sweepstakes machines have been eliminated, Hall believes that the potential exists to introduce over 3,800 gaming terminals into Chicago’s economy.
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