Chicago committee advances video gambling terminals despite mayoral opposition

A push to legalize video gambling terminals in Chicago took a significant step forward Tuesday, though the effort faces resistance from Mayor Brandon Johnson. The City Council’s License and Consumer Protection Committee voted 8-6 to advance a proposal by Ald. Anthony Beale (9th), a mayoral critic, that would allow the terminals to be installed throughout the city’s neighborhoods, the Chicago Tribune reported. The close vote highlighted divisions among aldermen, signaling potential hurdles when the measure reaches the full City Council. Opponents, including Johnson, argued the city’s share of revenue from the machines is too small. Currently, Chicago would receive about 5.15% of terminal revenue, compared with roughly 30% going to the state. Johnson said Tuesday that any proposal must maximize revenue for the city. “We can’t leave millions of dollars on the table,” Johnson said during an unrelated news conference. “Whatever comes from the 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.” The debate over legalizing the terminals has simmered in the City Council for years. A July briefing from the city’s top finance officials dampened a recent push led by a progressive ally of Johnson. Chief Financial Officer Jill Jaworski warned that the limited revenue would not offset potential losses from Bally’s Casino, including the likely end of a $4 million annual payment to the city. “We don’t expect it to make a big impact,” she said. “Maybe we make $10 million one year and lose $5 million another.” Beale countered that the casino’s underwhelming returns have not been enough to support police and fire pensions, and argued that widespread gambling terminals could perform better. “This will help kind of plug that hole,” Beale told fellow aldermen. He estimated the ordinance could generate up to $60 million annually, though he acknowledged the figure came from the gambling industry and lacked a detailed breakdown. Beale also dismissed Jaworski’s projections as unreliable, calling them “total BS” and criticizing city finance officials’ forecasting methods. Downtown Ald. Brendan Reilly, a vocal Bally’s critic, called the casino project an “unmitigated disaster” and urged negotiations with the state for a larger share of terminal revenue. Beale’s ordinance targets restaurants, performance venues, bowling alleys, hotels, theaters, and other establishments where alcohol is not the primary focus. Bars and taverns would be excluded under the current proposal, though some aldermen indicated they might push to expand eligibility. Ald. William Hall (6th), a progressive Johnson ally, has supported video gambling terminals in the past but criticized Beale’s proposal as rushed and insufficiently strict on “sweepstakes” machines, which operate in a legal gray area. Beale said he has discussed revenue-sharing with state leaders, who expressed willingness to negotiate, but claimed the city has not pressed for a larger cut. Johnson reiterated that he would advocate for a better split, noting past state efforts to claim funds that could have benefited local governments. During the committee meeting, Johnson’s Business Affairs and Consumer Protection Commissioner Ivan Capifali urged a delay, citing the financial, social, and regulatory implications of the proposal.However, the committee majority rejected the request, with Chair Ald. Debra Silverstein (50th) noting the city has been debating the issue for years. “We have been talking about this for years and years and years, so the city should have been ready for this, especially in such a budget crisis that we have right now,” she said.