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The Chicago City Council is moving to slash the bureaucratic red tape that has stalled the rollout of video gaming terminals (VGTs), as the city eyes a $6.8 million revenue target baked into the 2026 budget.
Last Monday, the Council’s License Committee advanced a measure to allow local businesses to receive “conditional” city permits while they wait for state-level licensing. The move aims to bypass a massive backlog that has left 222 applications languishing in the Department of Business Affairs and Consumer Protection (BACP).
Why Chicago is racing to permit VGTs
According to news by the Chicago Tribune, the city’s 2026 budget relies on licensing fees from these terminals to stay balanced. However, BACP Commissioner Ivan Capifali warned that his department was forced to build a regulatory framework from scratch without “advanced planning.”
Alderman David Moore moved to delay the ordinance due to these operational concerns, but the committee rejected his motion in an 11-3 voice vote. Alderman Brendan Reilly (42nd Ward) cast the lone “no” vote against the streamlining measure, citing the potential impact on the city’s downtown gaming interests.
Bally’s warns of job losses and revenue hits
The push for neighborhood gaming faces fierce resistance from Bally’s, the city’s sole brick-and-mortar casino. Elizabeth Suever, Bally’s vice president of government relations, warned that a citywide VGT expansion would:
- Endanger Jobs: Lead to the loss of 750 to 1,050 casino positions.
- Drain Revenue: Create a $260 million gross revenue shortfall for the casino, which is taxed at a significantly higher rate than neighborhood terminals.
- Void Agreements: Force a renegotiation of the city’s host community agreement, potentially jeopardizing $4 million in annual payments Bally’s currently pays to Chicago.
“It will create substantial job losses at the casino, and despite many false claims in this body to the contrary, will cause significant revenue loss for the city,” Suever told the committee.
While city-commissioned studies suggest a more conservative estimate of 400 lost jobs, the political tension remains high as the city balances neighborhood business interests against its cornerstone casino investment.
