Chicago leaders are thinking seriously about ending the city’s long-standing ban on video gaming terminals. But there’s a catch — they want a much fairer deal from Springfield before they let the dice roll.
At the heart of the conversation is the growing frustration over how state gaming revenue is divvied up. Right now, the lion’s share goes to Illinois, while cities like Chicago scrape by with crumbs. Officials say that needs to change — fast.
State Keeps Most of the Pot While Cities Pick Up the Leftovers
The numbers are staggering, and to many in the Chicago City Council, frankly insulting. Out of $1.1 billion in video gaming revenue collected statewide, Illinois keeps $955 million. That leaves only $164 million for every single municipality in the state combined — Chicago included.
Alderman William Hall, chair of the City Council’s Revenue Subcommittee, didn’t sugarcoat his frustration on Monday.
“The framework is just not built in our favour,” Hall said, bluntly.
Chief Financial Officer Jill Jaworski backed him up. She told council members that Chicago could see meaningful gains if the rules changed, but right now the state’s take is simply outsized.
“They would generate a lot of money opening up this market,” she said, adding that the current tax setup “is not favourable to us.”
A Tax Change First, Then Maybe a Green Light
Before the city allows even one new gaming terminal to switch on, officials are pushing hard for a renegotiation on revenue sharing. The idea isn’t new — Chicago has kept its foot on the brake for years while suburbs and downstate towns loaded up on machines.
But now, with budgets under strain and online sports betting already legal in the city, the pressure to say yes to gaming is growing. Still, officials are wary. They don’t want to open the gates only to find themselves locked out of the winnings.
There’s caution, but there’s also strategy.
A recent report by Christiansen Capital Advisors, commissioned by the city, added some cold, hard data to the conversation. According to their projections:
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If Chicago lifts its ban but keeps its current local tax rate, the financial benefit will be relatively small.
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If the city doubles its tax rate, its share could jump to $38 million in 2027 and $54 million by 2028.
Jaworski said this higher rate would better reflect the city’s needs and investment in regulation.
Comparing Chicago’s Cut With the Rest of the State
To understand why this is becoming such a sticking point, just look at how revenue is currently split under Illinois law.
| Category | Amount Collected (Est.) | Who Gets It |
|---|---|---|
| Total Statewide Video Gaming | $1.1 billion | |
| Illinois State Government | $955 million | 86.8% |
| All Municipalities (incl. Chicago) | $164 million | 13.2% |
| Chicago’s Current Annual Share | Under $10 million | Less than 1% of total |
City leaders argue that Chicago, with its population size, tourism, and regulatory infrastructure, deserves a far greater slice of the pie than it’s currently getting.
Local Operators Are Already Knocking — But Waiting
Small business owners across the city have watched their suburban counterparts rake in extra revenue from video slots and gaming lounges. And they’ve been wondering when — or if — their turn will come.
“There’s interest, no doubt,” said one South Side bar owner who asked to remain anonymous. “But we’ve all been holding our breath for years.”
A change in the law would allow:
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Taverns and cafes to apply for licenses
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Local job creation through installation and maintenance
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Small businesses to gain a new revenue stream
Still, many local owners say they won’t invest unless the city can prove it’s getting a fair return.
Alders Split Between Caution and Urgency
Not everyone is sold, though. Some council members worry that introducing video gambling too quickly could lead to social and economic issues in lower-income neighbourhoods. Others believe the city is already too late to the party and losing out every year.
One alderperson, speaking off the record, said, “We’ve waited this long — what’s another year if it means getting the state to the table?”
But that “wait and see” approach is wearing thin in some corners of City Hall.
Hall made it clear: “We’re not just going to hand this over without leverage.”
Bigger Picture: Illinois’ Gambling Boom Continues
While Chicago debates its position, the rest of the state’s gaming industry continues to expand. Sports betting is up, video gaming terminals are becoming a fixture in bars and restaurants, and new casinos are opening — including Bally’s $1.7 billion development underway in River West.
And while Springfield is counting its winnings, Chicago’s patience is running out.
Several analysts believe the city is one of the last untapped major markets for video gaming in the U.S. If — or when — the ban is lifted, the floodgates could open.
But not until Chicago gets its money’s worth.
