Mayor Brandon Johnson is now open to the idea of video gambling, after Illinois lawmakers were frustrated with Chicago's initial video gambling prohibition.Mayor Johnson...
Chicago officials consider lifting video gaming ban
Chicago officials consider lifting the city’s ban on video gaming and imposing a local tax on online sports betting, requesting a greater cut of tax revenue.
City officials and council members believe the current tax structure heavily favors the state, leaving Chicago with a minimal return from legal video gaming. According to Ald. William Hall, who chairs the City Council’s Revenue Subcommittee, of an estimated $1.1 billion in statewide video gaming revenue, Illinois receives $955 million, while Chicago and other municipalities have to split the remaining $164 million.
Chicago Chief Financial Officer Jill Jaworski shared:
“They would generate a lot of money opening up this market. The state gets a much larger percentage than we do from a tax framework that is not favorable to us.”
The analysis by Christiansen Capital Advisors revealed that if the city doubled its local tax rate, Chicago’s annual share would rise to $38 million in 2027 and $54 million in 2028.
Jill Jaworski told the subcommittee:
“With the taxing framework that we have to deal with at the state, we’re not seeing that we’re going to make much more money. That doesn’t mean we shouldn’t have them. … That can be a very strong argument for going to the state to try to get changes…that would make it more favorable to us.”
Budget Committee Chair Jason Ervin expressed frustration:
“It doesn’t take a rocket scientist to figure out the current structure is a ‘loser for Chicago.’ This is not possible. So the question comes down to, how do we find a reasonable ask between the state to make this all work?”
While council members differed on how to move forward, most agreed that reforms in state law were a requirement for expanding gaming in Chicago.
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