Bally’s Warns Chicago Against Lifting Video Gambling Ban Due to Potential Revenue and Job Losses
Concerns Raised Over Chicago’s Video Gambling Ban Lift
Bally’s Corporation has voiced strong concerns regarding Chicago’s consideration to lift its longstanding ban on video gambling terminals. The company warns that removing this prohibition could result in significant job reductions and a substantial drop in city revenue.
Background on Chicago’s Video Gambling Ban
For many years, Chicago has maintained a strict ban on video gambling terminals commonly found in bars and suburban eateries. Recently, local lawmakers have entertained proposals to revoke this ban, prompting debate across various sectors.
Bally’s Corporation, a leading gambling company that currently operates a temporary casino at Medinah Temple and is developing a $1.7 billion permanent casino, has expressed opposition to lifting the ban. The company argues that such a change could jeopardize millions in city revenue and potentially eliminate over a thousand jobs.
Projected Economic Impact If Ban Is Lifted
Based on Bally’s internal analysis, Chicago faces an estimated annual loss of up to $74 million in revenue if video gambling terminals become legal. Furthermore, due to increased competition from easily accessible terminals often located in bars, Bally’s anticipates job cuts reaching around 1,050 positions.
These terminals pay lower taxes than casinos but benefit from widespread placement, which could undermine Bally’s ambitions and investments in Chicago’s gambling market.
Potential Revision of City’s Agreement with Bally’s
Bally’s has indicated that the possible repeal of the video gambling ban might require revisiting the existing agreement between the city and the corporation. This could involve renegotiations led by Mayor Brandon Johnson to adjust terms, including the potential elimination of Bally’s annual $4 million payment and reduced contributions to police and fire pension funds.
The company has committed to preserving 3,000 jobs at its upcoming permanent casino but warns that lifting the ban might jeopardize this commitment.
Opposition and Support for Legalizing Video Gambling
Despite Bally’s warnings, 9th Ward Alderman Anthony Beale remains supportive of legalizing video gambling. He advocates for permitting approximately 700 bars and taverns to install these terminals as a financial relief strategy for the city.
Beale highlights Chicago’s ongoing budget deficits and points out that thousands of illegal gambling machines already operate without regulation or tax contributions. Legalizing and regulating video gambling could help reduce losses and generate new revenue streams.
While some studies suggest that legal video gambling might bring in around $10 million annually to the city, Beale remains optimistic about its financial benefits. Additionally, businesses hit hard by the pandemic have expressed support for lifting the ban as a means of economic recovery.
