Bally’s Urges Chicago City Council to Reconsider Video Gambling Terminal Expansion (Chicago, IL) – Bally’s Chicago is urging city officials to reverse course on the recent legalization of video gambling terminals (VGTs), warning that the move could jeopardize hundreds of millions of dollars in casino-related revenue, threaten union jobs, and undermine funding dedicated to police and fire pensions.
The comments came ahead of a City Council Committee on Workforce Development hearing examining a proposal to repeal the city’s authorization of VGT permits.
In a statement, Bally’s Corporation Senior Vice President for Corporate Development Christopher Jewett said the expansion of video gambling terminals represents a significant threat to the city’s long-term financial interests and violates commitments made under the company’s host community agreement with Chicago.
“Today’s hearing offers alders an important opportunity to have an honest conversation about the incredible harm that the legalization of video gambling terminals stands to wreak on the City of Chicago and specifically real revenue streams to address pensions and other urgent fiscal needs,” Jewett said.
According to Bally’s, the introduction of additional gaming options in Chicago constitutes a material breach of the Host Community Agreement between the city and the casino operator. The company said it has already provided legal notice to the city and warned that legalization of VGTs would require renegotiation of key provisions of the agreement.
Bally’s officials said one immediate consequence could be the loss of a guaranteed $4 million annual payment the company currently provides to the city under the agreement.
The company also argues that widespread VGT expansion could significantly reduce casino revenue. Bally’s cited statewide data showing Illinois casinos have experienced a 37% decline in gaming revenue since video gambling terminals were introduced across the state in 2012.
Chicago’s budget anticipates approximately 3,300 eligible establishments could host up to six terminals each, creating as many as 19,800 VGTs citywide. Bally’s said that number exceeds the total slot machine count at all 17 Illinois casinos combined by roughly 43% and would effectively add nearly five casino-sized gaming operations throughout the city.
The company estimates that expanded VGT operations could result in a yearly tax revenue loss of approximately $260 million from Bally’s Chicago casino operations. Of that amount, Bally’s projects the city could lose roughly $70 million annually in tax revenue, in addition to the potential loss of the $4 million host agreement payment.
Bally’s also noted that the city receives a significantly larger share of casino slot machine revenue than VGT revenue. According to the company, Chicago retains 23.2% of revenue generated by casino slot machines compared with just 5.15% of VGT revenue.
Jewett said the company’s commitments to Chicago extend beyond tax revenue. Bally’s has pledged to create and maintain approximately 3,000 union jobs at its permanent casino development, provide opportunities for local businesses, invest in community benefits, and meet diversity and inclusion goals tied to its city agreements.
The company warned that reduced casino visitation resulting from VGT expansion could directly impact staffing levels and employment opportunities at the casino.
City officials have argued that VGT licensing could generate additional revenue for Chicago through licensing fees and local taxes. Bally’s contends those projected gains, estimated by the city at roughly $6.8 million annually, are far outweighed by the broader economic losses that could result from reduced casino activity.
The City Council committee hearing is expected to examine the financial, labor and regulatory implications of Chicago’s decision to permit video gambling terminals and whether changes to the policy should be considered.
Bally’s Urges Chicago City Council to Reconsider Video Gambling Terminal Expansion
