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State of Play’s TL;DR
- Bally’s has reportedly threatened legal action if Chicago does not reverse newly legalized video gaming terminals.
- The fight pits a major casino operator against a city government trying to balance budget needs, contract expectations, and broader gambling policy.
There’s a growing dispute between Bally’s Casino and Chicago officials over video gaming terminals. According to a report by Fox 32 Chicago, Mayor Brandon Johnson’s administration is trying to undo the city’s recent legalization of the terminals in an effort to preserve Chicago’s deal with Bally’s.
The mayor’s chief financial officer reportedly asked aldermen to ban the machines.
The stakes are not small. Aldermen passed the budget over the mayor’s objections and relied on video gambling revenue to cover a $6.8 million hole. The report also said Bally’s warned it would sue – and could blow up its contract with the city – if the terminals are not banned.
Alderman Anthony Beale pushed back, arguing the ordinance was sent to the wrong committee and that the Licensing Committee, not the Workforce Committee, has jurisdiction over video gaming terminals. He also said the city should focus on what he described as 7,000 illegal sweepstakes machines already operating in Chicago.
Alderman says Bally’s tax revenue has not met projections
Chicago is weighing whether legal video gaming terminals should become a meaningful municipal revenue stream or whether protecting Bally’s economics takes priority.
Beale said Chicago expects to make between $60 million and $100 million annually from legal video gaming terminals. He contrasted that with Bally’s recent contribution to the city’s pension system:
“Last year alone, we only made 16 million off of Bally’s contributing to our pension system. … They promised over $100 million.”
That framing matters well beyond Chicago. Around the country, operators and governments are still figuring out how casino agreements coexist with other gambling products, especially when projected tax and fee revenue falls short.
Beale also argued Bally’s is “attempting to renegotiate their agreement with the city of Chicago because they’re underperforming.”
The report added another wrinkle: Beale said Bally’s has authority to host slot machines at O’Hare and Midway airports but has not done so despite having had the opportunity for two years.
Based on reporting by Fox 32 Chicago.
