Date Published: December 18, 2025, 03:19h.
Last updated on: December 18, 2025, 03:19h.
- Bally’s warns that VGT legalization could diminish casino revenue and job opportunities.
- Local officials advocate for VGT fees and taxes to bridge budget deficits for 2026.
- City evaluates casino agreement safeguards against overall gaming tax revenues.
Bally’s has criticized budget-constrained Chicago officials as discussions gain traction on legalizing video gaming terminals (VGTs).
The casino operator, which is in the process of establishing a $2 billion gaming resort in the River West area, cautioned city aldermen who advocate for increased revenue through legalized and taxed VGTs that such an initiative could backfire.
VGTs—similar to slot machines found in bars, restaurants, and liquor establishments across Illinois—are currently prohibited in Chicago. Since their legalization in Illinois in 2009, they have emerged as the state’s most significant source of gaming tax revenue, although Chicago opted out to maintain stricter control over gambling activities.
Negotiation Leverage
This prohibition later served as a negotiating tool while the city was pursuing a land-based casino venture, enticing operators like Bally’s with the reassurance of no VGT rivalry within city boundaries.
Nonetheless, Bally’s gaming venue at Medinah Temple, functioning as a temporary setup during the construction of the main resort, has failed to meet expectations, prompting some aldermen to explore the VGT option.
“Incorporating [currently] unregulated, independently operated VGTs as a budget component will lead to a significant loss in potential new revenue for the city and result in considerable job losses at the Bally’s Chicago Casino,” stated Bally’s Vice President for Government Relations Elizabeth Suever in a formal statement shared with the Chicago City Council’s Finance Committee on Tuesday.
“Even if this proposal were to be implemented as is, it would result in $0 revenue for FY 2026 for the city,” she reiterated.
Suever referred to a city ordinance aimed at tightening regulations on sweepstakes machines introduced last week by Alderman William Hall. These machines exist in a legal gray area, marketed more as promotional sweepstakes than gambling devices.
Hall has made it clear that the initiative is focused on eliminating gray-market gambling to pave the way for an officially regulated VGT marketplace.
Alternative Fiscal Strategies
Chicago Mayor Brandon Johnson opposes the legalization of VGTs, arguing that they would not generate substantial net revenue. His budget strategy suggests increasing corporate tax rates as a method to enhance city finances. However, an alternative plan, supported by 27 of Chicago’s 50 aldermen, endorses the legalization of VGTs.
Bally’s has indicated that this could compel a reevaluation of the Host Community Agreement (HCA), which ensures its exclusivity for major gambling operations in Chicago in return for a $4 million annual payment to the city.
City officials have crunched the numbers. The alternative budget estimates that even without this payment, the city could achieve an additional $6.8 million from licensing fees alone, not accounting for future tax revenues.
Bally’s had previously suggested that such a shift could decrease the number of jobs projected from the completed casino—from an expected 3,000 down to between 750 and 1,050. Furthermore, they claim it could cost Chicago around $70 million in annual tax income.