Bally’s Threatens Lawsuit, Says It Will Stop $4 Million Payment and Offers Airport Slot Lounges to Replace VGT Revenue

Overview

• Bally’s told City Council committees on June 24–25 that it will sue if the council keeps video gambling terminals legal and that it will halt a $4 million annual licensing payment if the 2022 host agreement is voided.
• As an alternative to the $6.8 million the city budgeted from VGT licensing, Bally’s proposed installing slot-machine lounges at O’Hare and Midway and said airport taxes from those lounges could match the VGT revenue projection.
• The city’s $6.8 million estimate depends on 80% of about 3,300 eligible bars and stores applying for licenses and the Illinois Gaming Board issuing licenses in six to eight months, assumptions that city officials say carry implementation and timing risks.
• A June committee hearing became heated and was abruptly adjourned after aldermen clashed with Business Affairs Commissioner Ivan Capifali and accused him of failing to address thousands of sweepstakes machines operating in a legal gray area.
• If Bally’s withholds payments or demands renegotiation, the city could face a budget shortfall, potential job losses cited by Bally’s, and months of litigation or bargaining that would affect pension and hiring pledges under the host agreement.