Chicago video gambling hearing abruptly ends in debate, disarray

By Sean Reed | The Center Square
The Center Square

(The Center Square) – A public meeting Wednesday on the state of legal gambling in Chicago was brought to an abrupt close by aldermen looking to prevent a ban on video gambling terminals in the city.

Aldermen sitting on the Committee on Workforce and Development were scheduled to question a variety of parties with interests in the potential ban, but made little progress.

A deal with Bally’s Casino has been on the city’s books since before Mayor Brandon Johnson took office, and casino representatives said $74 million in city revenue and hundreds of jobs would be threatened if the city approves licenses for VGTs.

Christopher Jewett, senior vice president of Bally’s Casino, said he believes Bally’s can help to fix that issue without breaking that agreement.

“We do share your desire to avoid a budget shortfall, which is why we have proposed substituting the revenue you have anticipated from VGTs with revenue from airport slot machines,” Jewett said.

The executive said that each of the five terminals between O’Hare and Midway airports have the capacity for a gambling lounge, and the tax revenue generated by those would easily cover what’s projected to come from VGTs.

The General Assembly passed a law allowing Bally’s slots to be installed at the two airports, so all it would take is action by the casino.

The City Council legalized VGTs last year as part of the current city budget, but aldermen aligned with Johnson now seek to roll it back – despite the city counting on $6.8 million in tax revenue generated by the machines.

Ivan Capifali, commissioner of the Chicago Department of Business Affairs and Consumer Protection, said implementing a VGT program in the city would incur costs and need to expand greatly in order to maintain oversight, which would likely outweigh the expected revenue.

Alderman Debra Silverstein argued the hearing wasn’t fit for the committee it was placed in, implying those looking to bring the ban back are trying to skirt the normal legislative process.

Alderman Jason Ervin said the legalization of VGTs is insignificant when compared to the revenue generated by the casino.

“Bringing one of those slot machines in O’Hare or somewhere else outside of Bally’s gives us greater revenue opportunities,” Ervin said. “If we’re talking about budget, that is going to help us meet our budget while not having to proliferate gambling in all 50 wards.”

Calling it a “circus,” Alderman Anthony Beale said the hearing was a waste of time and city resources, remaining opposed to the ban.

“We’re doing all of ourselves a disservice by even talking about this right now. When you have a city who won’t shut down illegal sweepstakes machines,” Ervin said. “We have a legal avenue that’s approved by the Illinois Gaming Board and we want to shut that down on the grounds that it’s going to hurt Bally’s – who’s underperforming in their temporary [casino.]”

Beale called on Capifali to resign after the official refused to address the thousands of legally-grey sweepstakes machines, which resemble VGTs but are untaxed and pay out through vouchers or free plays.

“We’re ignoring the law. We’re ignoring logic. We’re ignoring common sense on behalf of what? And Ivan, I’m sorry man. You make excuses left and right. Your integrity is zero. You have none,” Beale said.

The majority of the committee in attendance voted to end the meeting then.