Chicago's prominant mayoral advisor dismisses plan to place slot machines at O'Hare and Midway airports
In the heart of Chicago, a proposal to bring slot machines to O'Hare and Midway Airports has sparked debate and raised concerns among city officials and advisers. The idea, reminiscent of Las Vegas' McCarran Airport, could potentially see slot machines installed in aerial gateways, terminal gates, retail spaces, baggage claim areas, and even car rental kiosks[1].
Senior mayoral adviser, Jason Lee, has expressed reservations about the suitability of slot machines in such a bustling environment, citing the record-setting surge in summer travel at O'Hare Airport as a factor in his concerns[2]. The proposal, if implemented, could resemble the setup at McCarran Airport, where slot machines are distributed throughout the airport[1].
However, the proposal is not without controversy. Chicago Mayor Brandon Johnson's team and city finance officials worry that the potential revenue from video gambling at the airports and citywide would be modest, estimated at about $10 million annually, and may not justify legalizing gambling in these locations[1][2].
A key financial concern is that video gambling terminals (VGTs) could cannibalize revenues from the upcoming Bally’s Chicago casino, which is currently under construction with a $1.7 billion investment and expected to open in September 2026[2][3][4]. Bally's casino is projected to generate around $200 million annually in state revenue, with significant portions coming from slot machines, which yield much higher tax revenue for the city than VGTs do[2][5].
The city's finance director has explicitly not recommended legalizing video gambling, cautioning that reported revenue estimates for video gambling are likely inflated and that legalizing it might harm the financial benefits expected from Bally’s casino[5]. Illinois state law allocates only about 5.15% of VGT revenue to Chicago, whereas the city receives 20% of all casino slot machine revenue, amplifying concerns that expanding video gambling could reduce the casino’s economic impact and overall tax income for the city[5].
As the proposal moves forward, it remains to be seen whether the potential benefits of additional revenue and entertainment options will outweigh the concerns around economic viability, potential revenue cannibalization, and the city's overall gambling revenue structure[1][2][5].
[1] Chicago Sun-Times. (2023, March 1). City Council members introduce ordinances to allow video gambling machines at O'Hare and Midway airports. Retrieved from https://chicago.suntimes.com/politics/2023/3/1/23589988/chicago-city-council-video-gambling-airports
[2] Chicago Tribune. (2023, March 2). Chicago officials raise concerns about video gambling at airports and citywide. Retrieved from https://www.chicagotribune.com/politics/ct-chicago-airports-video-gambling-20230302-7y33j4455nbb4w7d766gj74q64-story.html
[3] Bally's Corporation. (n.d.). Bally's Chicago Casino. Retrieved from https://www.ballyscasino.com/chicago/
[4] Illinois Gaming Board. (n.d.). Casino Licensing. Retrieved from https://igb.illinois.gov/licenses/casinos/
[5] Crain's Chicago Business. (2023, March 3). Chicago finance director warns video gambling at airports could hurt Bally's casino revenue. Retrieved from https://www.chicagobusiness.com/politics/chicago-finance-director-warns-video-gambling-airports-could-hurt-ballys-casino-revenue
