In a contentious decision, a City Council committee has voted to support the legalization of video gaming in over 3,500 venues across Chicago, including restaurants, hotels, theaters, and bowling alleys. This move comes despite strong opposition from Mayor Brandon Johnson, who voiced his disapproval immediately following the committee’s vote of 8 to 6, led by City Council dean Anthony Beale (9th). The ordinance now awaits approval from the full City Council.
Mayor Johnson’s stance is particularly notable in the context of a looming $1.15 billion budget shortfall following two consecutive years of deficit spending. He has publicly maintained his opposition to lifting the existing ban on video gaming in Chicago, stating that any revenue generated would be insufficient to justify the potential downsides.
A recent consulting study commissioned by the city indicated that the projected revenue from video gaming could be at best $10 million annually. Moreover, Johnson expressed concerns that such legalization could ultimately be detrimental, particularly in light of the impact it might have on slot machines at the forthcoming Bally’s casino, currently under construction in the River West neighborhood. The tax on slot machine revenue is nearly four times higher than that on video gaming terminals, highlighting a potential loss for the city’s finances.
Johnson articulated his position, insisting, “We can’t leave millions of dollars on the table. And so, whatever comes from City Council — if it doesn’t maximize the full benefit of what this opportunity could bring to the revenue structure of our city, then I’m not going to be supportive of it.” He stressed the importance of capturing revenue that would otherwise be lost to the local economy and reiterated that he has not seen evidence suggesting video gaming maximizes revenue potential.
On the contrary, Alderman Anthony Beale contended that lifting the ban on video gaming would allow the city to leverage its position to persuade the Illinois General Assembly to revise the tax structure more favorably for Chicago. He described the move as a path of least resistance for generating revenue, arguing that the proposal holds the potential to yield significant financial returns even if the current tax structure remains unchanged.
Beale posed a thought-provoking question: “Are we going to turn our blind eye on $60 million to $100 million? Or are we going to look to raise property taxes, increase ticket fees, increase garbage fees? Or are we going to [be] creative to do something a little different that the city has never done?” He believes that showing commitment by allowing video gaming could encourage the state to modify the financial formula benefiting Chicago.
The ordinance in question seeks to permit video gaming terminals in about 3,500 establishments classified as “public places of amusement,” where the sale of liquor is permitted but not the primary source of income. This category comprises a wide array of venues such as restaurants, hotels, theaters, arcades, and bowling alleys, with establishments being authorized to install up to six gaming terminals.
Interestingly, bars and taverns have been excluded from this ordinance; however, Beale indicated a willingness to revisit this issue and potentially include those establishments in the future.
Business Affairs and Consumer Protection Commissioner Ivan Capifali brought to light additional considerations, arguing that the city requires more time and resources to effectively manage the impending video gaming framework. He warned that enforcing the ordinance and confiscating illegal terminals could intensify pressures on the already burdened Chicago Police Department.
Opponents of the video gaming measure, such as Carl Gutierrez from the Chicagoland Chamber of Commerce, urged the License Committee to dismiss Beale’s ordinance, citing concerns that it violates the city’s existing contract with Bally’s to develop a $1.7 billion casino and entertainment complex. Gutierrez cautioned that such defiance would tarnish the city’s reputation as a reliable partner in contractual agreements.
In a display of divergent opinions, Downtown Alderman Brendan Reilly (42nd), a candidate for Cook County board president, voiced his concerns about gambling addiction but ultimately sided with the majority in supporting Beale’s ordinance, underscoring the pressing need for additional revenue streams amid the challenges faced by Chicago’s restaurants and entertainment venues.
Reilly characterized the impact of city taxes and fees on liquor-serving businesses as stifling, stating, “The city is strangling businesses, especially those that serve liquor, with all sorts of taxes and fees and mandates.” He added that providing a legal avenue for video gaming could alleviate some of this financial pressure.
As the ordinance heads to the full City Council for consideration, the debate over video gaming in Chicago remains deeply polarized, highlighting the complexities of balancing potential revenue against broader economic and social implications.
image source from：chicago
