Bally’s Says Chicago Could Lose $74M and 1,050 Jobs if Video Gambling Ban Is Revoked

Bally’s Corporation has expressed concern about the possibility of ending Chicago’s ban on video gambling, warning that it could lead to job cuts and loss of state revenue.

Chicago Mulls Over Ending the Video Gambling Terminals Ban

Chicago has for years prohibited the video gambling terminals players usually associate with bars and suburban restaurants. Last month, however, lawmakers proposed putting an end to this ban.

Bally’s Corporation, which is one of the biggest gambling companies in Chicago, argued that this might not be a good idea. The casino corporation, which is currently operating a temporary casino at Medinah Temple and constructing a $1.7 billion permanent property, sad that ending the ban on video gambling terminals could deprive the city of millions of revenues and even lead to job cuts.

According to Bally’s estimations, Chicago could lose up to $74 million in annual revenue if the aforementioned ban is ended. Additionally, competition could lead to cuts of up to 1,050 jobs.

For context, video gambling terminals have to pay much lower taxes, while being much more readily available due to their placement in bars and taverns. As such, they could undermine Bally’s local ambitions.  

The Changes Could Prevent Bally’s from Fulfilling Its Promises

It is possible that Bally’s warnings would force certain changes to the ordinance seeking to end the ban on video gambling. Bally’s further argued that such a drastic regulatory change should force Mayor Brandon Johnson’sto renegotiate some elements of the city’s agreement with Bally’s.

Among other things, a renegotiated agreement could end an annual $4 million payment from Bally’s and reduce the jackpot for saving police and fire pension funds.

Bally’s, which had promised to maintain 3,000 jobs at its permanent casino added that the decision to end the ban on video gambling could jeopardize this promise.

Anthony Beale Remains Bullish on Video Gambling

9th Ward Ald. Anthony Beale seemed to be unimpressed with Bally’s warnings and reasserted his intentions to allow some 700 bars and taverns to add video gambling terminals to their offerings.

Baele said that Chicago has struggled with a budget deficit for too long and that it cannot “turn a blind eye” to almost the millions of dollars the state could gain by legalizing video gambling terminals. He added that Chicago already hosts some 3,000 illegal machines that do not contribute to the state at all and are not being taken care of. By at least regulating and taxing the vertical, Chicago can cut some of its losses.

While a study suggested that video gambling in Chicago is unlikely to be more than $10 million a year, Baele remains bullish on the vertical.

The possible revocation of the ban was also welcomed by businesses that were hurt during the pandemic and are still struggling to recover.