The initiative to legalize video gaming terminals (VGTs) in Chicago’s bars and restaurants remains in limbo, even after the City Council endorsed the plan last month as part of the city’s budget for 2026. Mayor Brandon Johnson and council members have indicated that discussions are still ongoing.

This ongoing dialogue between Johnson’s administration and the council marks the initial significant effort to modify the budget previously approved by aldermen in December, which passed against the mayor’s recommendations. The budget was accepted to prevent a shutdown of city services, and officials have referred to it as a “living document.”

Jason Lee, a senior advisor to Johnson, noted that the legalization process “necessitates additional time and careful collaboration.”

“Several aldermen express discomfort with the VGT extension, especially regarding the manner in which it was pursued,” Lee informed the Chicago Tribune.

Estimates from the aldermen suggest that legalizing VGTs could generate $6.8 million this year, a minor fraction of the city’s $16.6 billion budget. Operator licensing will still require significant input from Johnson’s office.

Lee expressed concerns about aspects such as limited vendor representation, lack of input from Bally’s Casino operator downtown and labor organizations, and the necessity for greater control by aldermen over terminal placements.

“There’s an ideal way to approach this, and then there’s a subpar method. If this is to happen, it must be executed correctly,” he remarked.

Lee also highlighted the tax structure as a critical topic. Currently, Chicago would take a 5% cut from VGT revenue, while the state garners 30%. This city tax income would be lower than the 20% share it receives from casino slot machines.

Even with the projected timeline in the budget, licensing for the terminals wouldn’t commence until July. Although aldermen estimated that 1,800 machines could be operational this year, the Illinois Gaming Board only granted 790 licenses statewide last year and had nearly 500 establishments awaiting approval.

Ald. Anthony Beale, 9th, stated that Johnson could expedite the process by informing the state of Chicago’s intentions.

“There are other negotiating routes besides merely throwing a wrench in everything,” Beale expressed. “Your role is to execute the duties tied to the budget as approved, not to selectively choose what to implement; that’s not how the executive branch operates.”

Beale described the machines as “a lifeline for many small businesses.”

John Canham, Chief Revenue Officer at Gold Rush Gaming, indicated that Chicago has forfeited $500 million in revenue since VGTs were introduced in Illinois around 2011. He projected that Chicago could see around $36.5 million in annual tax revenue once the terminals are in operation, assuming 2,000 locations each install an average of five machines earning $200 daily.

Nonetheless, some aldermen are opting to ban VGTs in their districts due to concerns about gambling addiction.

“I personally do not wish to see mini-casinos on every corner of my district,” Ald. Jessie Fuentes, 26th, asserted. “Gambling addiction damages families, undermines the mental well-being of our community members, and can wreck lives.”

The Johnson administration has also cautioned that legalizing VGTs might jeopardize a $4 million annual payment from Bally’s as part of its host agreement with the city, which could diminish the immediate benefits expected from this proposal.