VGT Debate Grows as Bally’s Misses Chicago Targets

World-leading entertainment company with “millions of players spread across digital gaming platforms and traditional casino venues”, Bally’s, has been intensely working on building a $2 billion casino in Chicago’s River West neighborhood. 

The facility is expected to officially open its doors to patrons in September 2026. However, the company believes the legalization of video gaming terminals (VGTs) would lead to revenue loss and job cuts for the venue, an argument which they clearly addressed in front of Chicago City Council members earlier this week. 

The Council’s Proposal “Would Generate $0 Revenue in FY 2026“

Their criticism was a response to a group of aldermen who proposed an alternative budget version to the one originally sent by Mayor Brandon Johnson. That aldermen’s budget passed out of the Finance Committee by a 22-13 vote, and it features $6.8 million in revenue from licensing fees from legalizing VGTs. 

This would represent the state’s largest portion of tax revenue from gaming. At the moment, VGTs are banned in Chicago through a city ordinance.

As explained by Elizabeth Sueve, Bally’s vice president for government relations, the incorporation of “unregulated, independently-managed VGTs as a budget line item” would trigger “a loss of substantial new revenue for the City” while creating “significant job losses at the Bally’s Chicago Casino”.

“Even if this proposal were to pass as is, it would generate $0 revenue in FY 2026 for the City,” she added. 

Bally’s Could Stop the $4M Yearly Support 

Mayor Johnson has been clear that he does not support legalizing video gaming terminals in Chicago, arguing they would not bring in meaningful revenue. However, should the city move in that direction, Bally’s could push to reopen its Host Community Agreement and potentially drop the $4 million it currently pours into the city on a yearly basis. 

Alderman Anthony Beale made sure to consider this risk as well when he presented his revenue estimate when his VGT ordinance cleared the committee in September.

One particular reason why the VGT idea is gaining so much traction is the fact that Bally’s obtained weaker-than-expected tax performance at its temporary River North casino. While the city budgeted $35 million a year for 2024 and 2025, the company only managed to deliver $16.1 million last year, and $14.4 million through the first 11 months of 2025.

Nonetheless, Beale chose not to mention Bally’s results when defending his numbers before the Finance Committee, but instead focused on the “3,000 illegal sweepstakes machines” that have already spread across the city, and which are not generating a single penny for the city.

This debate comes just days after Bally’s received a conditional license to build a $4 billion casino in the Bronx. That deal requires a $500 million license fee to New York regulators and $115 million to the Trump Organization tied to the Ferry Point golf course lease.

Meanwhile, gaming taxes are under pressure across the board, with the mayor and City Council having both proposed a new 10.25% tax on Chicago-based sports betting revenue. Mixed together with the current state and county taxes, the new rate would go up to well above 30%, and it would be even higher for major mobile operators that are already struggling to pay-per-wager surcharges.