Opposing sides
Bally’s is in the middle of constructing Chicago’s first-ever casino, which will cost an estimated $1.7bn when complete. Now, the Rhode Island-based company has expressed concern about a bill gaining momentum that aims to legalize video gambling machines in the city.
Alderman Anthony Beale wants to allow bars and restaurants to offer these machines
9th Ward Alderman Anthony Beale wants to allow bars and restaurants to offer these machines. The measure has already made it through the City Council License Committee despite Mayor Brandon Johnson’s vehement opposition to it. A vote on an expanded version of the bill was delayed on Thursday to give lawmakers more time to thrash out the details.
A previous city study on the possible outcome of legalizing video gambling terminals estimated that by 2030, it could result in somewhere between negaitve $7m after accounting for the lost casino revenue and a net gain of $22m.
Possible negative impact
Bally’s Vice President of Government Relations Elizabeth Suever has explained that removing the video gambling ban would change its contract. The new casino wouldn’t be sending an annual $4m lump sum payment and legalization would reduce the property’s handle.
Illinois could lose out on $260m in taxes every year from the casino
As slot machine revenue is taxed almost four times more than video gambling terminals, Illinois could lose out on $260m in taxes every year from the casino, of which $70m would have been allocated to Chicago.
The other consequence could be the loss of between 750 and 1,050 jobs at the property. Bally’s arrived at these figures after considering the 37% average drop in revenue at Illinois casinos since the legalization of video gaming terminals in 2012.
Those in favor of legalizing terminals
Alderman Beale believes urgent action is necessary to deal with Chicago’s $1.1bn budget deficit. He referenced the 3,000+ illegal video gambling machines dotted around the city that operate without facing any consequences.
Beale has some support from his fellow lawmakers, with Downtown Alderman Brendan Reilly telling the Chicago Sun-Times that it’s hard to take Bally’s warning seriously after its projections for its temporary River North casino “fell embarrassingly and predictably short by millions.”
local business owners are also in favor of legalizing video gambling terminals
Many local business owners are also in favor of legalizing video gambling terminals. Hospitality Business Association of Chicago Managing Director Pat Doerr remarked how this would provide a financial lifeline to establishments, especially those that compete with legal gaming right across the state border.
