Members of the Chicago City Council are reigniting efforts to authorize video gambling across the city by introducing two new ordinances. These could pave the way for the installation of hundreds of gambling terminals at O’Hare and Midway airports, marking the first instance of such machines being permitted citywide.
These proposals arise despite concerns raised by Mayor Brandon Johnson’s financial advisors, who question the expected revenue from video gambling and caution that it may compete with the city’s newly established casino. Alderman Gilbert Villegas (36th) has presented one of the ordinances, focusing on the city’s airports, where he foresees a combination of political viability and significant revenue generation.
“The General Assembly has created an opportunity via the casino bill. Yet, we’re missing out on potential revenue from one of the busiest airports in the country,” Villegas remarked.
“Travelers often spend one to two hours at the airport, sometimes facing delays in their flights or connections, creating a chance to engage an audience that might not even be visiting the city.”
Villegas’ ordinance stipulates a licensing fee of $10,000 per location, plus $500 for each terminal. Separate licenses for terminals would be charged at $1,000, with an additional $500 per machine. If 400 terminals each brought in $800 daily, annual revenue could potentially exceed $116.8 million, with the city receiving a portion through licenses and taxes.
Alderman Anthony Beale (9th) advocates for a more expansive citywide rollout. His proposed ordinance would legalize video gambling throughout Chicago, including establishments like neighborhood bars and restaurants.
“We need this initiative to be citywide as well as at the airports,” Beale stated. “The revenue is essential, yet this administration hasn’t displayed a commitment to pursuing new funding sources that wouldn’t directly burden taxpayers.”
Beale’s proposal includes a $500 licensing fee per location and a $1,000 charge per terminal for both the site and the individual machine. He has criticized the current administration for downplaying the potential benefits, claiming that the existing tax structure could be renegotiated with state legislators.
“They haven’t demonstrated the willingness to travel to Springfield and alter the tax formula,” he explained. “I hope these ordinances will finally encourage them to form a team to pursue this.”
City officials, however, have expressed doubt. Earlier in June, Chief Financial Officer Jill Jaworski referenced a consultant’s study forecasting only $10 million in yearly revenue from video gambling, cautioning that expanding this market may diminish revenues for the city’s downtown casino, where taxes on slot machines are nearly four times higher.
Alderman William Hall (6th), chair of the City Council’s revenue subcommittee, announced that another hearing on video gambling will take place next week. Hall underlined the necessity of addressing unregulated sweepstakes machines currently found in some neighborhoods before embracing the legal market.
“Sweepstakes machines function similarly to illegal slot machines in numerous neighborhoods,” Hall stated. “They are contributing to a detrimental black market.” He added that once illegal machines are eliminated, the city could support over 3,800 legitimate terminals.
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