City leaders in the Windy City are navigating a financial conundrum as the newly established 2026 “alternative” budget ignites a face-off between the incoming Bally's Casino in Chicago and potential citywide video gaming terminals (VGTs). This budgetary move could challenge the city’s longstanding gaming landscape and test the influence of Mayor Brandon Johnson.
This all started when Chicago’s City Council recently approved a $16.6 billion budget.
The plan aims to close a substantial financial gap by introducing VGTs across the city, ending a historic ban. Already, key committees have moved forward with ordinances to lift the prohibition on VGTs, banking on an estimated $6.8 million in projected revenue from these gaming machines.
While Mayor Johnson has voiced opposition to the VGT framework, he allowed the budget to proceed without his signature, effectively authorizing the introduction of VGTs unless the issue is revisited in future council discussions.
This is also moving forward without the blessing of Bally’s, which believes the move could cost the city millions.
Concerns for Bally's Casino Chicago
Bally’s Corporation, which is investing approximately $2 billion into a flagship casino in River West with a target opening in late 2026, is understandably apprehensive. The company has raised alarms that the introduction of legal VGTs could detract from casino attendance and, consequently, decrease the city’s revenue share. Bally’s financial models suggest that while the city’s take from casino gaming ranges between 22% and 23%, it would plummet to a mere 5.15% for VGT revenue.
The casino giant argues that a shift toward VGTs could result in annual losses totaling tens of millions of dollars for the city, warning that the economics of its flagship project could be severely undermined.
What Bally’s Next Steps Could Be
With the budget passing, Bally’s has several options at its disposal.
Potential courses of action include lobbying for stringent geographical limitations on VGTs—perhaps restricting them to specific areas like airports—seeking financial adjustments, delaying the permanent casino build-out, or launching public relations campaigns highlighting potential job and revenue losses.
Observers suggest Chicago is steering toward a hybrid gaming model, much like the rest of Illinois, which may diminish Bally’s initial value proposition.
Nonetheless, the move appears politically advantageous, given the city’s financial pressure and the goal of taxing currently illegal gaming machines.
Broader Considerations for Policy Analysts
This scenario accentuates the challenges faced by cities hosting casino models based on exclusivity, particularly in environments already rich in VGTs. As persistent budget pressures rise, expanding gaming options like VGTs becomes more attractive than increasing casino taxes or broad-based taxes.
Analysts will be keeping a close eye on any announcements from Bally’s regarding changes to its Chicago plans, possible renegotiations of community agreements, and how the final VGT ordinances are structured to potentially safeguard the River West project.
The coming months promise to be pivotal as Chicago redefines its gambling sector amid ongoing fiscal challenges.
