Chicago’s City Council legalized video gambling terminals in the 2026 budget, leading to Bally’s pausing casino construction in River West. This decision reportedly violates a 2022 contract with the city’s selected casino operator.
What Happened
The Chicago City Council voted to legalize video gambling terminals (VGTs) in bars and restaurants as part of the 2026 budget. This action prompted Bally’s to adjust the pace of construction on its casino site in River West, according to the Chicago Sun-Times. Bally’s stated that the legalization of VGTs directly breaches a contract the city of Chicago established with the casino operator in 2022.
Under the terms of the 2022 agreement, Bally’s committed to a significant investment in River West, including creating permanent union jobs and dedicating a portion of proceeds to police and fire pension liabilities. In return, the city agreed not to legalize VGTs, which would reportedly reduce gaming and pension revenue. This breach of contract raises concerns about the city’s reputation for conducting business and the progression of surrounding developments, which support union jobs and contribute to the tax base, as reported by the Chicago Sun-Times.
Key Details
- The City Council legalized video gambling terminals in the 2026 budget, according to the Chicago Sun-Times.
- Bally’s has reportedly slowed casino construction, citing the VGT legalization as a breach of its 2022 contract with the city.
- Illinois casinos have experienced nearly a 40% reduction in gaming revenue attributed to VGTs, as stated by the Chicago Sun-Times.
- Legalizing VGTs could result in nearly $100 million in lost tax revenue for Chicago’s police and firefighter pension funds, according to the Chicago Sun-Times.
- Concerns have been raised regarding a potential increase in crime in neighborhoods surrounding establishments with VGTs, as noted by the Chicago Sun-Times, referencing incidents in Oak Lawn.
Why It Matters
The legalization of VGTs by the Chicago City Council has implications for the city’s financial stability and its relationships with corporate entities. The reported breach of contract with Bally’s may deter other businesses from investing in Chicago, impacting future economic development and job creation, according to the Chicago Sun-Times. The potential loss of $100 million in tax revenue designated for police and fire pension funds highlights a significant financial risk for the city’s public services.
Furthermore, the presence of VGTs is linked to a historical reduction in gaming revenue for existing Illinois casinos and has raised public safety concerns. Unlike casinos, VGTs in bars and restaurants reportedly lack robust security measures, potentially leading to increased crime in surrounding neighborhoods, as exemplified by experiences in Oak Lawn, according to the Chicago Sun-Times. Community leaders and advisory council members have expressed alarm over these developments, citing constituents’ financial and public health concerns related to VGTs.
What’s Next
The Chicago Sun-Times report suggests there is still an opportunity for alderpersons to reverse the legalization of video gambling terminals before their widespread implementation. Reversing this decision could address concerns regarding contract breaches, potential revenue losses, and public safety implications.
Originally reported by Chicago Sun-TimesPublished
Sources & References
Primary source
- Chicago Sun-Timeschicago.suntimes.com
Additional references
- Video Gaming in Chicago: Where Things Stand | Civic Federationlive.civicfed.org
- Opinion: Video gambling terminals spell bad news for Chicagobancodeprofissionais.com