Consider this the shot fired across the bow.
Bally’s has warned that if Chicago allows video gambling machines, the city could lose about $74 million a year. The casino operator also warns that the move risks losing 750 to 1,050 casino jobs, including those at the temporary Medinah Temple casino and the upcoming River West resort casino.
Bally’s also said that changing gambling laws might mean renegotiating their deal with the city, which could stop their $4 million annual payment to Chicago and lower tax revenue because video gambling is taxed less than casino slots.
Push to Expand Video Gambling in Chicago
Despite warnings and opposition from Mayor Brandon Johnson, Alderman Anthony Beale is pushing to extend the video gambling ordinance.
It has passed a key committee vote and would cover 700 more bars and taverns, affecting up to 3,500 venues. These locations, including restaurants and hotels, could each have up to six gambling machines.
Bally's argues that this change would hurt casino income, citing a 37% revenue drop in other Illinois casinos with similar laws.
They predict Chicago could lose $70-$74 million in yearly taxes, and the state could lose up to $260 million, while the mayor's office estimates only a $10 million yearly gain. Alderman Beale believes it could generate $60-$100 million annually and highlights the presence of currently untaxed illegal machines.
Bally's Agreement With the City of Chicago
Bally’s agreement with Chicago includes several key commitments:
At least 25% of the casino's ownership must be held by minorities and women, as defined by city rules, including African Americans, Hispanic Americans, Asian Americans, American Indians, and women of any race. This is a legal requirement in Illinois and part of the agreement to provide specific share opportunities for eligible residents.
The shares under this plan can only be owned and transferred to individuals or companies meeting the city's minority and women qualifications, and they cannot be sold for at least five years after the casino opens.
Bally's must report monthly on meeting diversity and hiring goals. These include contracting with local small businesses, ensuring at least 36% of business is with minority enterprises, 10% with women enterprises, 50% of work hours go to Chicago residents, and 15.5% to residents from designated development areas.
Bally’s must also make regular payments to Chicago, including a guaranteed $4 million annual fee and additional contributions outlined in the agreement.
This agreement is designed to bring economic benefits to the community, achieve diversity in ownership and hiring, and ensure financial accountability to the city.
The City Council’s License Committee chose not to vote on the proposal after intense debate.
Alderman Beale has agreed to pause the video gambling measure for further discussion, as it faces strong opposition from Bally’s, the mayor, and other council members, leaving its outcome uncertain.
There are also ongoing discussions about the possibility of expanding ports betting and casino-style gambling options in The Prairie State, so there is a lot to sort out.
