Chicago Committee Advances VGT Legalization Proposal as Mayor Johnson Opposes

The Chicago City Council’s License Committee has advanced a proposal to lift the city’s ban on video gaming terminals (VGTs), a move supporters say will generate millions in new revenue. At the same time, critics, including Mayor Brandon Johnson, warn it could undercut the city’s flagship Bally’s casino project.

The ordinance, sponsored by Ald. Anthony Beale, one of Johnson’s most prominent critics, passed the committee 8–6. It would allow up to six VGTs in over 3,500 “public places of amusement” that serve alcohol. These include restaurants, hotels, theaters, and bowling alleys. Bars and taverns remain excluded, though Beale said they could be considered later.

“Are we going to turn our blind eye on $60 million to $100 million? Or are we going to look to raise property taxes, increase ticket fees, increase garbage fees? Or are we going to [be] creative to do something a little different that the city has never done?” Beale told his colleagues.

“If we can go to the state and say that now, we’ve put some skin in the game — and ask the state to change the formula.”

Beale argues that the extra source of income will be essential for Chicago, which has a budget gap of over a billion dollars. He also claims that lifting the ban would give the city the leverage it needs to convince the Illinois General Assembly to make the video gaming tax structure more favorable to Chicago.

To be enacted, the measure must be approved by the full City Council.

Johnson Administration Pushes Back

Mayor Johnson strongly opposes the plan. His administration cited a city analysis showing VGTs would bring $10 million per year at best. However, they could even cost the city money by cannibalizing revenue from the upcoming Bally’s Casino slot machines. In Illinois, slots are taxed at a rate nearly four times higher than VGTs.

“We can’t leave millions of dollars on the table. And so, whatever comes from City Council — if it doesn’t maximize the full benefit of what this opportunity could bring to the revenue structure of our city, then I’m not going to be supportive of it,” Johnson told reporters at his weekly City Hall news conference.

Johnson is not alone in opposing the measure. Business Affairs and Consumer Protection Commissioner Ivan Capifali argued that his department needs more time and resources to administer and enforce VGTs in the city. He added that enforcement would put an additional strain on the Chicago Police Department.

Meanwhile, Carl Gutierrez, vice-president of government relations for the Chicagoland Chamber of Commerce, called the measure a “clear violation” of the city contract that authorized Bally’s to build a casino and entertainment complex in River West.

Gutierrez added that breaching the contract would “send a message” to all city contractors that “Chicago is not a reliable partner.”

Bally’s is currently building its $1.7 billion Chicago casino project, with an anticipated opening in September 2026. As part of the agreement upon winning the bid, Bally’s has already paid the city $40 million.

There are doubts among the public and some city officials about whether Bally’s will be able to meet the target opening date, which the state mandates. The company faced challenges in financing the project. It sought to raise $250 million through a Chicago-based IPO to fund it.

Other Proposals to Raise Revenue

The VGT debate comes as Chicago faces a $1.15 billion budget shortfall. Johnson has thus far rejected significant tax hikes. However, some council members argue that expanding gambling could help fill the gap.

Recently, the City Council also discussed another potential revenue stream: a city tax on mobile sports betting platforms. As part of a discussion on sweepstakes machines, Ald. Jeanette Taylor said that taxing sportsbooks would be a more politically viable and lucrative solution.

No further details are available on the size of the proposed tax. For reference, Chicago already taxes retail sportsbooks within city limits at 2% of gross gaming revenue.

A city tax could be a solution that the mayor’s office could agree on more than VGTs. Chicago Chief Financial Officer Jill Jaworski has disclosed that the mayor’s administration has already “done the analysis” on imposing a local tax on online sports betting platforms.

What’s Next

The ordinance now heads to the full City Council for a vote. Johnson has said he will not support it unless the city can “maximize its benefit.” That includes securing stronger revenue guarantees and enforcement resources.

If passed, Chicago would join dozens of Illinois municipalities that have embraced VGTs as a supplemental revenue stream alongside casinos.