Chicago Mayor Wants Committee to Reinstate Recently-Scrubbed Video Gambling Ban

Grant Mitchell
By: Grant Mitchell
Industry
Mayor Wants to Ban Electronic Gambling

Photo by Flickr, CC by-NC 2.0 (https://creativecommons.org/licenses/by-nc/2.0/)

Key Takeaways

  • Removing the prohibition should generate $6.8 million in tax proceeds
  • Johnson worries that repealing the prohibition violates an agreement with Bally’s
  • Bally’s maintains a temporary casino and is working on completing a massive permanent location

The city of Chicago, Illinois, can’t seem to figure out its approach to electronic video gambling.

State officials on Thursday approved applications from six local bars and restaurants to offer these machines to their customers. 

That same day, Chicago Mayor Brandon Johnson requested that the Chicago City Council walk back its decision to allow guests and residents across the city to play games such as video poker and slot machines.

Johnson wants to stop electronic gambling

Public records show that the Illinois Gaming Board approved video gambling in three locations in Mount Greenwood, a neighborhood in Chicago: Bar 106, Lawlor’s Bar, and Hippo’s Bar. Beverly’s Cork and Kerry and Half Sour in the city Loop, and Eggsperience in Lakeview were also greenlit.

Johnson, meanwhile, requested the City Council’s Committee on Workforce Development to meet next Monday to discuss introducing an ordinance that would disallow video gaming terminals across the city.

It’s unclear if a proposal would receive enough votes to get over the line.

“There’s some aldermen who are concerned about what this would mean for Bally’s operations in the city of Chicago, and their commitments to the city,” Workforce Development Chair Mike Rodriguez (22nd) told the Chicago Sun-Times. “This ordinance, if passed as it is, [would repeal video gambling citywide and] start a conversation about revenue.”

The City Council ultimately agreed to meet at 10:00 a.m. on Monday. A spokesperson for the Mayor said on Friday afternoon that the committee would only discuss the proposed ordinance and would not call for a vote.

File:2023 Chicago mayoral run-off fourm.jpg - Wikimedia Commons
Chicago Mayor Brandon Johnson (2023)

Disrespecting the process?

Chicago had a longstanding ban on video gambling. However, the $16.6 billion budget plan approved by the City Council removed the restriction to generate an estimated $6.8 million in local tax payments.

Mayor Johnson has been in office since May 15, 2023, so it’s not as if his opinion is only just coming to light.

Johnson’s objections to video gambling at local establishments are fears related to the future opening of Bally’s Chicago casino, which will house live-dealer table games, slot machines, poker, and other casino amenities.

Johnson believes that allowing the electronic machines violated the agreement reached with Bally’s, while others have questioned if these machines will cannibalize revenue that could’ve been generated at the casino.

Ald. Anthony Beale (9th), a strong proponent of repealing the now-missing ban on electronic machines, called out Johnson’s attempt to re-impose the rule just after it was removed.

“You can’t pass something in one committee and repeal it in another,” Beale said. “It’s just pathetic the games this administration plays.”

Beale predicted on Thursday that Johnson would fail to round up the 26 votes he needed to flip the ruling and reinstate the prohibition on electronic gambling machines. License Committee Chair Debra Silverstein (50th) also expressed concerns with Johnson’s approach.

“Your decision to bypass the committee with clear jurisdiction and instead send this legislation to a committee perceived to be more politically favorable to you is a transparent attempt to avoid scrutiny and deliberation that should accompany any proposal of this magnitude,” she wrote in a letter to Johnson. “Unfortunately, this action is consistent with a broader pattern of efforts by your administration to circumvent the legislative powers of the City Council when doing so is politically expedient.”

Bally’s previously warned Chicago about removing its ban on video gambling, saying that it would cost $74 million in annual revenue and more than 1,000 jobs at its temporary and upcoming permanent casino.

Grant is an industry news expert who covers legislative news, financial updates, and general industry trends. As a veteran of the gambling industry, Grant has experience in the world of casinos, sports betting, and iGaming. As a former long-distance runner, he knows a thing or two about persistence and consistently holding himself to a high standard.

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