Chicago City Council committee approves legalisation of video gambling terminals
The proposal still needs approval from the full City Council, but major Brandon Johnson is against it.
US.- Chicago’s City Council License and Consumer Protection Committee has approved a proposal to legalise video gambling terminals in around 3,500 venues across the city, including restaurants, hotels, theatres and bowling alleys. Each site would be allowed to install up to six terminals. Bars and taverns are not included in the current wording.
The proposal was approved in an 8-6 vote. It still needs to pass the full City Council.
The bill was introduced by alderman Anthony Beale. He told the Chicago Tribune that the terminals could bring in from $60m to $100m annually although he didn’t explain how the figure was calculated.
Major Brandon Johnson has spoken against the measure. He said the city’s share of the tax revenue from video gambling terminals would be relatively small compared to the state’s portion. He also argued that the revenue generated may not offset the impact on the Bally’s Casino, which currently contributes $4m annually to the city.
According to local media, the city would only receive around 5.15 per cent of the revenue generated, while the state would take 30 per cent. Beale argues that lifting the ban would help the city persuade the Illinois General Assembly to create a better video gaming tax structure. HE said the city needs new sources of funding, especially to support police and fire pensions.
Carl Gutierrez, vice president of government relations for the Chicagoland Chamber of Commerce, had urged the License Committee to reject Beale’s proposal. He said it’s a violation of the city contract with Bally’s. He warned that ignoring the contract would send a message that “Chicago is not a reliable partner.”
