Chicago’s high-stakes budget battle just got hotter as Bally’s warns that legalizing video gaming terminals could slash revenue and jobs at its massive new casino. With aldermen pushing an alternative plan to plug city holes, the gaming giant is drawing a line in the sand. What does this mean for the Windy City’s finances and future?
A group of Chicago aldermen fired back at Mayor Brandon Johnson’s budget woes with their own proposal, and it sailed through the Finance Committee on Tuesday with a 22-13 vote. This rival plan scraps Johnson’s corporate head tax and instead eyes new revenue streams like higher taxes on plastic bags and liquor sales, plus fees from rideshares.
At the heart of the debate is a push to legalize video gaming terminals, or VGTs, which are banned in Chicago but rake in big bucks elsewhere in Illinois. The aldermen’s budget counts on $6.8 million from licensing these machines alone.
This move could finally end Chicago’s long-standing ban on VGTs, opening doors for bars and restaurants to install them. But not everyone is cheering.
The alternative budget aims to close a huge gap without hitting everyday folks too hard, according to supporters. Mayor Johnson, in his first term, called it a tax on the poor and vowed to fight back.
Bally’s Sounds the Alarm on Revenue Hits
Bally’s, the company building a $2 billion casino in River West, didn’t hold back in its Tuesday blast at the City Council. They claim VGT legalization would gut their projected earnings and force job cuts at the venue set to open next September.
Company leaders argue that VGTs in local spots would pull gamblers away from the casino, hurting the city’s tax haul in the long run.
Bally’s has already poured millions into construction, promising thousands of jobs and steady revenue for Chicago. Now, they warn this budget tweak could undo that progress.
In a statement, Bally’s highlighted how VGTs might lead to “significant job losses” and a drop in casino taxes that fund police pensions and other city needs.
This isn’t the first time Bally’s has raised concerns. Recent reports show they’ve lobbied hard against similar ideas, stressing their deal with the city includes protections from competing gaming.
Job Losses and Economic Ripples Loom
If VGTs get the green light, Bally’s predicts a domino effect on employment. The casino is expected to create over 3,000 jobs, many union positions, boosting the local economy in a neighborhood hungry for growth.
Critics of the ban say Chicago misses out on millions yearly by keeping VGTs illegal, while suburbs cash in. Statewide, VGTs generated over $2.5 billion in tax revenue last year, according to Illinois Gaming Board data from 2024.
But Bally’s counters that their casino alone could bring in $200 million annually in taxes once fully running.
Here’s a quick look at potential impacts:
- Revenue Shift: VGT fees might add $6.8 million short-term, but casino losses could wipe that out.
- Job Outlook: Up to hundreds of positions at risk if foot traffic dips.
- City Budget Hole: Without casino cash, Chicago’s $16.6 billion spending plan faces more strain.
Aldermen behind the plan insist it’s a balanced fix, restoring funds for youth jobs and avoiding deeper cuts.
One key worry is how this affects River West, a spot transforming with new developments. Residents hope the casino sparks revival, but VGTs could spread gaming thinner.
Mayor Johnson’s Stand and Council Power Play
Mayor Brandon Johnson, facing pushback from opposition aldermen, slammed the rival budget as shortsighted. His team claims it leaves a $163 million shortfall, criticizing moves like ads on city vehicles for extra cash.
Johnson’s original plan leaned on a head tax for big firms, but that flopped in committee. Now, with the alternative advancing to full council, he might veto it, setting up a showdown.
The mayor’s organizer background is shining through as he rallies progressives against what he calls unfair taxes. Talks continue, with no clear end in sight.
This impasse tests Johnson’s leadership in his debut budget season. Aldermen, flexing their muscles, released tweaks to close a $42 million gap by nixing a garbage fee hike.
Background shows Chicago has dodged VGTs for years over addiction fears and crime links, but budget crunches are changing tunes.
Wider Gaming Landscape in Illinois
Illinois leads the nation in VGT revenue, with machines in over 8,000 spots outside Chicago, per a 2023 state report. They outpace casinos as the top gaming tax source, pulling in funds for roads and schools.
Bally’s casino, approved under former Mayor Lori Lightfoot, was pitched as a game-changer for city coffers. Delays and funding snags have dogged it, but construction hums along.
Opponents of legalization point to social costs, like gambling addiction spiking in communities. Supporters argue regulation beats the illegal machines already popping up.
A recent editorial in the Chicago Tribune hailed the aldermen’s plan as a disaster averter, urging compromise.
This fight mirrors national trends where cities chase gaming dollars amid tight budgets, but at what price to big projects like Bally’s?
Chicago’s budget saga underscores the tough choices leaders face in balancing quick fixes with long-term bets. As Bally’s pushes back against VGTs to protect its $2 billion investment and the jobs it promises, residents wonder if this will heal or deepen the city’s financial wounds. The coming council vote could reshape gaming and employment in the Windy City for years.
