Facing State Pressure, Chicago Mayor Now “Open” to Allowing Video Gaming Terminals

A Shift in Tone from City Hall

As first reported by The Center Square, Mayor Johnson’s new stance is a significant departure from his administration’s previous position that VGTs wouldn’t generate much revenue for the city.

“I’m open,” Johnson said at a press conference. “The work that we have to do to continue to build a safe and affordable city requires us to make critical investments.”

“As long as people are willing to participate in that form of entertainment, it’s an opportunity for us to secure the revenue that’s needed,” he added.

This new openness follows a spring legislative session where state lawmakers from both parties expressed deep frustration with Chicago’s refusal to opt into the state’s VGT program.

Lawmakers “Begging” Chicago to Take the Money

During a May committee hearing, state legislators voiced their anger that Chicago benefits from the road funds generated by VGTs in their districts while refusing to allow the machines in its own bars and restaurants. State Rep. Dave Vella pointed out that for 12 years, Chicago has been receiving funds from VGTs in Rockford and Peoria.

“It is frustrating to leave this much money on the table when the city of Chicago… has made statement after statement that he’s going to come to Springfield and get what Chicago’s due, and Chicago’s not willing to kick in,” Vella said. State Rep. Daniel Didech was even more blunt, saying lawmakers were “practically begging” Chicago to accept the revenue.

The debate over VGTs comes as Chicago’s hospitality industry is struggling. Pat Doerr, managing director of the Hospitality Business Association of Chicago, told state lawmakers that 30% of the city’s taverns have closed since 2012.

Vella drew a direct connection between VGT revenue and the health of local businesses. “They help keep restaurants open,” he said, noting the large number of VGTs in his Rockford-area district. For many small bar and restaurant owners in Chicago, the ability to add VGTs could be a crucial new revenue stream.

The financial stakes are high. One failed bill from the spring session projected that allowing VGTs in Chicago would generate $250 million for the state and between $50 million and $70 million for the city. Since Illinois authorized VGTs in 2012, the state has collected over $6.7 billion in tax revenue, with more than $1 billion being redistributed to local municipalities.