Chicago Mayor Brandon Johnson said he is now open to allowing video gambling terminals (VGTs) in the city after state lawmakers expressed frustration over Chicago’s refusal to approve the machines, citing lost revenue opportunities.
Key takeaways
- Mayor Brandon Johnson shows openness to video gambling in Illinois.
“I’m open. I’ll just say it like that, right, because 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,” Mayor Johnson said.
The shift follows pressure from Illinois legislators during the 2025 spring session.
State Rep. Michael Kelly introduced House Bill 2990, which would allow Chicago to opt out of video gaming rather than opt in. Although the measure held up in committee, Kelly said VGTs could generate up to $250 million for the state and between $50 million and $70 million for Chicago.
Lawmakers emphasized that video gambling revenues had been indirectly supporting the city. State Rep. Dave Vella said that the city had been receiving funds from VGTs in Rockford, Peoria, and the Quad Cities for 12 years.
After the legalization of VGTs in 2012, the state has collected over $6.7 billion in tax revenues, more than $1 billion of which has been reallocated to municipalities. Pat Doerr, managing director of the Hospitality Business Association of Chicago, said 30% of the city’s taverns have closed since 2012, with VGT revenue potentially providing a lifeline.
Illinois makes another attempt to legalize online casinos
As Chicago reconsiders its stance on video gambling to boost city revenues, Illinois lawmakers are also trying to expand the state’s gaming industry through online casinos.
Senator Christina Castro and Representative Edgar Gonzalez introduced Senate Bills that aim to create the Internet Gaming Act and permit casinos to run several online brands at a higher recommended tax rate of 25%.
Legislators view legal iGaming as a crucial step toward boosting state revenue, as Illinois is expected to experience a $3.2 billion budget deficit in fiscal year 2026.
Illinois demands more from betting operators in new budget
In addition to considering the legalization of VGTs and online casinos, Illinois has also tightened its grip on betting operators, with a new fiscal year budget approved on May 31.
The $55.2 billion plan introduces a per-bet fee on online sports wagers, $0.25 for the first 20 million bets annually and $0.50 thereafter, in addition to the state’s existing progressive tax system.
Governor J.B. Pritzker, who signed the measure on June 16, said the budget prioritizes education, healthcare, and job creation. However, industry groups warn that the move could impact operator margins, reduce promotional offers, and affect long-term growth in Illinois’ betting market.
