A Chicago City Council committee has narrowly approved a proposal to legalize video gambling in about 3,500 venues like restaurants and hotels; Mayor Johnson warns it may not yield enough revenue.
What the Proposal Covers
Alderman Anthony Beale has introduced an ordinance to legalize video gambling terminals across Chicago. Under this plan, venues such as restaurants, bowling alleys, theaters, and hotels would be allowed to install up to six video gambling machines. Bars and taverns are excluded for now, since the proposal specifies that liquor-sales cannot be the primary source of revenue for participating establishments.
The Vote and Political Split
The proposal passed in the City Council’s License and Consumer Protection Committee by a tight vote of 8-6. The decision highlights a divide among aldermen: some support the measure as a needed revenue source, while others raise concerns over its scope and impact. The full City Council vote is still to come.
Mayor Brandon Johnson’s Objections
Mayor Johnson strongly opposes the ordinance in its current form. He argues that the city’s share of taxes from the terminals is too low compared to what the state will collect, and believes this could reduce revenue from existing gaming operations such as the Bally’s Casino. He also cautions that the proposal might not address the city’s large budget shortfall.
Financial Projections and Concerns
Estimations for annual revenue diverge significantly: proponents say the new video gambling could generate $60-100 million, while city finance experts suggest more conservative figures, possibly around $10 million, and warn that some years could incur losses. Critics also point out legal and contractual concerns, especially in relation to existing agreements with casino operators.
