In a major policy shift, a Chicago City Council committee has voted to lift the city’s long-standing ban on video gaming terminals — directly defying Mayor Brandon Johnson’s objections. The ordinance, approved by the License Committee in an 8-6 vote, would legalize video gaming machines at approximately 3,500 establishments licensed as “public places of amusement,” including restaurants, hotels, theaters, arcades, and bowling alleys where liquor sales are secondary to other business operations.

The measure still needs approval from the full City Council before taking effect. If passed, each qualifying venue would be allowed to install up to six video gaming terminals, though bars and taverns would remain excluded — at least for now.

Mayor Johnson, facing a projected $1.15 billion budget shortfall, reiterated his opposition to lifting the ban, citing concerns that it could undercut tax revenue from Bally’s casino project in River West, where slot machine taxes are nearly four times higher than video gaming terminal taxes. A city-commissioned study estimated that video gaming would generate no more than $10 million annually — and could even reduce overall city revenue.

“We can’t leave millions of dollars on the table,” Johnson said during his weekly City Hall press conference, stressing that any proposal must maximize revenue opportunities for Chicago.

Ald. Anthony Beale (9th), a long-time critic of the mayor and sponsor of the ordinance, argued that allowing video gaming would give Chicago leverage to push the Illinois General Assembly for a more favorable tax structure. Beale framed the measure as an alternative to property tax hikes and other fee increases, suggesting potential revenue gains between $60 million and $100 million.

City officials, including Business Affairs and Consumer Protection Commissioner Ivan Capifali, warned that enforcement and administration would require significant additional resources and could strain the Chicago Police Department.

The proposal also sparked debate with Bally’s representatives, who argued that approving video gaming violates the city’s casino agreement and could undermine Chicago’s reputation with contractors. But Ald. Brendan Reilly (42nd) dismissed Bally’s concerns, criticizing the operator’s performance at its temporary Medinah Temple casino and casting doubt on its ability to meet the state-mandated deadline for the permanent facility.