Ald. Beale is convinced Johnson is buying time to repeal video gambling, moves to force licensing process
The $16.6 billion budget approved by a City Council majority last December lifted the ban on video gambling in Chicago, but Mayor Brandon Johnson has yet to pursue licensing approval from the Illinois Gaming Board.
Convinced that Johnson is buying time in order to pursue a repeal of the Council's lifting of the ban, Ald. Anthony Beale (9th) is taking matters into his own hands.
Beale is sending a letter Wednesday to the Illinois Gaming Board meant to serve as official notification that City Hall has lifted the video gambling ban, and that acceptance of license applications for video gambling can begin. The letter is co-signed by at least 15 other Council members, and is accompanied by a certified copy of the revenue ordinance that counts on collecting $6.8 million this year by licensing newly legalized video gambling terminals at bars, restaurants, theaters and bowling alleys across the city.
That figure is based on the assumption that 80% of the 3,300 eligible establishments with off-premise liquor licenses will apply, and that the gaming board would take six to eight months to grant those licenses.
After consulting attorneys, Beale said he’s confident that the official notification that the Gaming Board requires to start accepting applications need not come from the mayor. It can come from other city authorities, including City Council members, as long as the letter includes a certified copy of the revenue ordinance that includes video gambling.
“The mayor refuses to move forward with giving bars and restaurants lifelines. And he refuses to move forward with creating a new revenue stream without raising taxes, fines and fees on the backs of people,” Beale said. “Every day he stalls is a day that we lose out on revenue. He can work to repeal it, but we’re moving forward. We're asking the Gaming Board to start accepting applications as soon as they get this letter."
Johnson did not answer directly when asked during his weekly City Hall news conference whether he was rounding up votes to repeal the video gambling portion of the budget.
“I know that there are several alders who have expressed concern and it’s important that I listen to those concerns,” the mayor said. “I have expressed my concerns. A decision hasn’t been made just yet [on whether to repeal]. However, it’s imperative that we get this right — especially because there are so many other levels of government that are working to address how gambling generates revenue for municipalities as well as state government.”
Newly appointed Ald. Walter “Red” Burnett (27th), whose Near West Side ward includes the $1.7 billion Bally’s casino under construction in River West, told the Sun-Times last week he supports the repeal, citing public safety and gambling addiction concerns, as well as the potential to “cannibalize” Bally’s casino revenues.
Burnett predicted that the City Council will vote to repeal the video gambling portion of the budget as early as Feb. 18 and if not, then at the March City Council meeting.
Senior mayoral adviser Jason Lee has argued that a video gambling terminal plan that “everyone could live with would require significant work” and that repeal is “one of the remedies” under discussion to resolve concerns about zoning, distribution, equity and finances.
“I’m saying [there are] conversations we’re having about solutions to deal with some of the challenges in the legislation, and one potential option is repeal. I didn’t say that’s the route we’re going," Lee said.
Bally’s has warned that lifting the Chicago ban on video gambling terminals would cost the city $74 million in annual revenue and as many as 1,050 jobs at its temporary and permanent casinos.
That’s because it would force the Johnson administration to renegotiate "critical elements” of its host agreement with Bally’s, and wipe out a yearly $4 million lump sum payment from the company and shrink the jackpot needed to save police and fire pension funds.