A Chicago City Council committee has voted to legalize video gaming in over 3,500 establishments, including restaurants, hotels, theaters, and bowling alleys, despite strong opposition from Mayor Brandon Johnson. The measure, championed by City Council dean Anthony Beale, passed the License Committee by a narrow 8-6 vote and now heads to the full City Council for consideration.
Key Takeaways
- A City Council committee voted 8-6 to lift Chicago’s ban on video gaming.
- Mayor Brandon Johnson opposes the measure, citing potential negative impacts on the city’s casino revenue.
- Proponents argue it’s a crucial revenue stream for businesses and the city, potentially generating millions.
- Concerns exist about the ordinance’s impact on the Bally’s casino contract and enforcement resources.
A Contentious Vote
Mayor Johnson has voiced significant objections to the proposal, arguing that it could undermine revenue projections for the Bally’s casino development. A recent study commissioned by the city suggested that video gaming revenue might be as low as $10 million annually and could even cost the city money due to its impact on casino slot machine revenue, which is taxed at a higher rate. Johnson stated his opposition unless the plan maximizes revenue for the city.
Arguments for Legalization
Council member Anthony Beale, a vocal critic of the mayor, argued that lifting the ban is a politically feasible way to generate much-needed revenue. He suggested that legalizing video gaming could bring in between $60 million and $100 million annually, even with the current tax structure. Beale believes that by taking this step, the city can gain leverage to negotiate a more favorable tax formula with the Illinois General Assembly. He contrasted this approach with potentially raising property taxes or other city fees.
Scope of the Proposal
The ordinance would permit up to six video gaming terminals in establishments licensed as "public places of amusement" where liquor is sold but is not the primary source of revenue. This includes restaurants, hotels, theaters, arcades, and bowling alleys. Bars and taverns are currently excluded, though Beale indicated openness to including them later.
Opposition and Concerns
Concerns were raised by Ivan Capifali, Commissioner of Business Affairs and Consumer Protection, who stated that his department would require more time and resources to manage and enforce video gaming regulations. The Chicago Police Department would also face an increased burden. Carl Gutierrez of the Chicagoland Chamber of Commerce argued that the ordinance violates the city’s contract with Bally’s, potentially damaging the city’s reputation as a reliable partner. Downtown Ald. Brendan Reilly, while historically opposed to video gaming due to concerns about accessibility for gambling addicts, ultimately supported the measure as a vital revenue source for struggling businesses, criticizing the city’s high taxes and fees on businesses.
