Chicago’s push to legalize video gambling terminals in bars and restaurants hangs in the balance, even after the City Council gave it the green light last month. Mayor Brandon Johnson and key aldermen now say more talks are needed, sparking fresh drama in the city’s 2026 budget saga. What changes could reshape this plan, and how might it affect everyday Chicagoans?
The City Council voted 29-19 in late December to pass a revenue plan that included legalizing video gambling terminals, or VGTs, to help plug budget holes without the mayor’s proposed head tax. This move came after tense standoffs that nearly shut down city government. Officials called the budget a “living document,” hinting at room for tweaks.
Johnson’s team sees the VGT plan as unfinished business. Top adviser Jason Lee stressed it needs “more time and some judicious collaboration.” The approval marked a rare defeat for the mayor, who had pushed for other revenue ideas like taxing high-earner jobs. Now, these talks are the first big effort to alter the budget passed over his objections.
Aldermen who backed the plan argue VGTs could bring in millions for the city. Estimates from city finance experts suggest up to $35 million in annual revenue from taxes on the machines. But critics worry about the social costs, pointing to a 2019 Illinois gambling expansion that led to more addiction cases.
One short fact stands out. Since Illinois allowed broader gambling, mental health providers have reported a spike in people seeking help for betting problems, according to a recent Axios report.
Key Players Push for Changes
Mayor Johnson has signaled he’s open to adjustments but wants protections in place. His administration fears unchecked VGTs could hurt neighborhoods already struggling with crime and poverty. Aldermen like those from wards hit hard by economic woes see the machines as a quick cash boost for local spots.
Negotiations focus on details like where VGTs can go and how many per location. Some council members want limits to avoid oversaturation in low-income areas. Bally’s, the company building Chicago’s new casino, has loudly opposed the plan, warning it could cut their revenue and jobs.
In a letter last month, Bally’s leaders claimed VGTs might siphon off casino visitors, threatening the $1.7 billion project set for River West. That casino, delayed beyond its 2026 deadline, already faces funding woes.
Talks involve balancing revenue needs with community concerns. Johnson aide Lee noted the process requires input from all sides to get it right.
- Revenue Potential: City projections show VGT taxes could generate $20-35 million yearly, based on models from other Illinois towns.
- Addiction Risks: State data from 2024 indicates a 15% rise in gambling helpline calls since expansions began.
- Job Impacts: Bally’s estimates up to 500 casino jobs at risk if VGTs draw away gamblers.
These points highlight the trade-offs at play.
Broader Effects on Chicago’s Economy
Legalizing VGTs could change the city’s bar and restaurant scene, giving small businesses a new income stream. Owners in suburbs with VGTs report boosts in foot traffic and sales. But in Chicago, where gambling has been limited, this shift raises questions about fairness.
Experts from the Illinois Gaming Board point to data showing VGTs in other areas added $800 million to state coffers in 2024 alone. For Chicago, it might mean funding for schools or roads without raising property taxes, which hit a record high last year.
Yet, the plan ties into bigger fights, like Illinois lawmakers’ efforts to block Chicago’s new sports betting tax. Set to start January 1, 2026, that 10.25% levy aims to raise funds but faces state pushback. Lawmakers in Springfield introduced bills to stop cities from adding such taxes, calling it a power grab.
One key study from Gambling Insider in early 2026 analyzed similar expansions. It found that while revenue grows, communities often see more problem gambling, with treatment costs rising 20% in affected areas.
This uncertainty affects everyday people. Bar owners hope for extra cash to survive rising costs, while residents worry about addiction hitting families hard.
| Aspect | Projected Benefit | Potential Drawback |
|---|---|---|
| Revenue | $35M annual city tax income | Depends on machine limits |
| Jobs | Boost for bars and restaurants | Possible losses at Bally’s casino |
| Social Impact | More entertainment options | Increased addiction risks, per state health data |
Challenges from State and Local Pressures
State-level drama adds layers to Chicago’s VGT push. Illinois expanded gambling in 2019, allowing VGTs outside the city, but Chicago held off due to past scandals. Now, with budget shortfalls topping $1 billion, leaders see it as a fix.
Johnson’s team wants safeguards, like banning machines near schools or churches. Aldermen counter that delays could mean lost revenue amid economic strains.
A 2025 report from the Civic Federation, a watchdog group, urged careful rollout to avoid pitfalls seen elsewhere. It cited examples where quick expansions led to regulatory messes.
Public sentiment is mixed. Some residents cheer the idea for funding city services, while others fear it preys on vulnerable groups.
These negotiations test Johnson’s leadership in his first term. With the budget passed against his wishes, any changes could set precedents for future council-mayor relations.
One thing is clear. The talks aim to refine the plan before implementation, possibly by spring 2026.
Chicago’s video gambling saga shows how tough choices in tough times can divide leaders and communities. As negotiations drag on, the city balances quick cash against long-term risks, leaving many to wonder if VGTs will truly help or just create new problems.
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