Chicago's approval of slot-like video gaming terminals (VGTs) is getting closer.

An ordinance that would let some firms to pursue VGTs was approved by the City of Chicago Committee on License and Consumer Protection on Tuesday, with an 8-6 vote. According to Illinois' VGT statute, establishments with a current liquor license are permitted to have six to ten gaming machines.

Truck stops may have ten VGTs, whereas small enterprises may only have six. Every establishment must be at least 1,000 feet away from a racetrack or casino.

Although VGTs have long been prohibited in Chicago, some municipal officials are proposing to legalize the gaming machines due to the city's ongoing financial problems, which include a $1.15 billion budget shortfall.

"Are we to just sit back and look down the barrel of a $1.5 billion deficit with nothing in sight, or are we to look for additional revenues that don’t affect everyone like property taxes, people driving down the street with tickets, being hit every other day?” asked Alderman Anthony Beale, who represents the 9th Ward. The Chicago Sun-Times first reported Ward’s comments.

“Are we going to turn a blind eye on $60 million to $100 million? Or are we going to be creative to do something a little different, something the city has never done before?” Beale questioned.

Mayor's Opposition

According to a study the city commissioned, legalizing VGTs could bring in more than $67.2 million a year for Chicago. In Illinois, VGT gross gaming revenue is subject to a 35% tax, of which about one-sixth, or 5.8%, is given back to the local government of the machine.

Any potential net revenue loss to the city from other sources, primarily the Bally's Casino, is not factored into the VGT prediction. While the $2 billion permanent resort is being constructed at the former Freedom Center newspaper publishing factory, the temporary casino is operating at the Medinah Temple.

Although expenditure continues to rise due to pension financing issues, Chicago Mayor Brandon Johnson, who was formerly in favor of VGTs but now opposes their authorization, claims the city does not have a spending problem.

“We do not have a spending problem in Chicago. We have a revenue challenge in Chicago,” Johnson said this week.

Bally's Agreement 

In May 2022, Bally's was declared the winner of the downtown casino bidding in Chicago. Bally's was chosen by the City Council over proposals from Hard Rock International and Chicago-based Rush Street Gaming.

There are legal worries that Chicago's Host Community Agreement with Bally's may be broken if the city permits VGTs. The conditions include guarantees that the city will not permit the opening of a second casino and will not permit any other "mode of lawful gaming" beyond what is now permitted.

VGTs would be a "clear violation" of the Bally's contract and "send a message" that the City of Chicago "is not a reliable partner," according to Carl Gutierrez, vice president of government relations for the Chicagoland Chamber of Commerce.