Bally’s Issues Second Warning as Chicago Aldermen Advance VGT Revenue in Budget Standoff

Bally’s Corporation has issued a second formal warning to the Chicago City Council about the city’s push to legalize video gambling terminals (VGTs), following a revised city budget proposal advanced through the Council’s finance process that counts on revenue from expanded video gaming.

In a one-page briefing circulated to council members, Bally’s urges lawmakers to reject any budget that incorporates VGTs as a revenue line. The company labels such an approach as “an unsound budget choice.” Bally’s claims that it would generate “$0 revenue in FY 2026 for the City” if applied prematurely.

The company’s message highlights concerns that VGTs would undercut projected municipal revenues. At the same time, it potentially threatens the city’s existing host community agreement tied to the Bally’s Chicago casino project.

Bally’s latest intervention comes as Chicago’s City Council Finance Committee approved an alternative budget plan this week. It includes approximately $6.8 million projected annual revenue from VGTs as part of efforts to close a widening budget gap.

That plan passed the committee by a 22-13 vote. However, it still needs to be finalized by the full Council and resolved with Mayor Brandon Johnson’s administration before the year-end deadlines.

From Initial VGT Debate to Budget Impasse

Chicago’s debate over VGT legalization has been ongoing for months. In September, a City Council License and Consumer Protection Committee advanced a proposal to lift the city’s longstanding ban on VGTs. Supporters said the move could unlock millions of dollars in revenue.

That initial vote came despite strong objections from Mayor Johnson. He raised concerns that VGTs would bring a much smaller revenue share than some projections by supporters.

He also warned that VGTs would cannibalize Bally’s casino contribution. Notably, slot revenue is taxed at roughly four times the VGT rate in Illinois.

Bally’s also publicly opposed VGTs in October. The company flagged potential annual losses of approximately $74 million for the city and up to 1,050 lost jobs if VGTs were authorized.

New Budget Proposal Brings VGTs Into Play

As budget negotiators scrambled to fill Chicago’s roughly $1.2 billion budget gap, council members crafted a revised revenue plan that includes an estimated $6.8M from VGT licensing fees.

The plan also seeks to broaden the fiscal base through other measures. They include a hike in the city’s shopping bag tax and the introduction of new revenue streams from liquor taxes. At the same time, it rejects the mayor’s controversial head tax.

Mayor Johnson, who initially included a 10.25% city tax on sports betting in his own budget proposal, has repeatedly voiced opposition to the alternative plan. He has characterized some elements as “not feasible” or potentially threatening to the city’s financial stability.

Bally’s Highlights Revenue, Contract & Job Risks

Bally’s latest warning emphasizes that legalized VGTs would weaken Chicago’s long-term gaming revenue position compared with the more lucrative revenue streams tied to the Chicago casino project.

The company highlighted the significant difference between the casino and VGT tax structures. It noted that Chicago would receive only 5.15% of VGT revenue, compared with 22.3% from casino gaming. That leaves the city exposed to revenue losses due to casino play cannibalization.

Bally’s points to the broader Illinois picture. It stated that since 2012, when VGTs began operating in the state, casinos have experienced a 37% decline in gaming revenue. That has resulted in reductions for related tax streams, including admission and payroll taxes.

The company reiterated the potential annual loss of $74 million for the city.

Bally’s also reiterated its commitment to creating and maintaining 3,000 jobs at its permanent Chicago site. However, it warned that casino staffing is demand-driven, and that between 750 and 1,050 jobs could be at risk.