The Illinois city wants to allow video gambling in order to boost its coffers
Bally’s Corporation has issued a firm warning to Chicago lawmakers. It claims that lifting the city’s long-standing ban on video gambling could cost the city millions in revenue and hundreds of casino jobs.
The company, which operates the temporary Medinah Temple casino and is building a $1.7 billion permanent site in River West, estimates that the change could reduce its annual tax payments to Chicago by about $70 million and eliminate more than 1,000 jobs.
Elizabeth Suever, Bally’s VP of government relations, said allowing video gambling terminals (VGTs) in Chicago would “directly threaten” the casino’s economic commitments, including a $4 million annual payment to the city and a pledge to maintain 3,000 jobs once the permanent facility opens. She noted that casinos in other regions saw roughly a 37% drop in revenue after nearby cities legalized VGTs, warning that Chicago could face the same impact.
Despite Bally’s concerns, 9th Ward Alderman Anthony Beale remains determined to push forward with his proposal to legalize VGTs across 700 bars and taverns in the city. Beale argues that Chicago can’t afford to ignore the potential income from regulating machines that already operate illegally. He believes the city is losing millions each year to unlicensed gambling devices while struggling to cover a $1.15 billion budget shortfall.
Beale also said he plans to work with Illinois lawmakers to revise the tax structure, which currently places a heavier burden on slot machine operators than on video gambling machines. He believes that if the revenue split is adjusted, both the city and small businesses could benefit.
Not all city officials share Bally’s outlook. Alderman Brendan Reilly criticized the company’s warning, noting that Bally’s previous revenue forecasts for its temporary casino “fell short by millions.” Meanwhile, supporters from the hospitality industry argue that legal VGTs could help struggling neighborhood bars rebound from the financial effects of the pandemic.
