Key Moments:
- Chicago officials have proposed slot machines at O’Hare and Midway as a response to a $1.15 billion budget deficit
- Slot machines are currently available only at Las Vegas’ Harry Reid International and Reno-Tahoe International airports
- Chicago City Council discussions suggest potential annual revenue of up to $40 million from airport slots
Pursuing New Revenue Streams for Chicago
With a $1.15 billion budget shortfall looming, Chicago’s city leadership is considering the installation of slot machines inside O’Hare and Midway International Airports. Currently, Las Vegas and Reno are the only cities in the United States offering in-terminal slots, but Chicago aims to follow suit.
Mayor Brandon Johnson recently suggested a 10.25% tax on gross revenue from Illinois online sportsbooks for wagers placed within Chicago. However, state lawmakers have already introduced measures to block local taxation or regulation of sports betting, making other revenue options more attractive.
Jill Jaworski, chief financial officer for the city, stated that the mayor’s office has initiated discussions about airport slots with Bally’s, the gaming partner selected through the Rebuild Illinois Act of 2019. Bally’s is also developing a $2 billion resort in the city’s River West district.
Legal Pathways and Past Decisions
State legislation enacted in 2019 authorized six new land-based casinos, including permission for slot machines at Chicago’s airports, provided they are placed beyond TSA security checkpoints. Despite this, former Mayor Lori Lightfoot did not move forward with the opportunity. Now, the current administration may revisit this option.
“We’ve had a conversation with Bally’s about moving that forward. They have expressed interest,” Jaworski told the City Council.
Expected Financial Impact
Council members responded with optimism to the city’s consideration of airport gaming. “This was a layup. The General Assembly gave us this authority. It’s a shame the previous administration and this administration haven’t acted … instead of nickel-and-diming people,” commented Ald. Gilbert Villegas (36th). Financial projections estimate up to $40 million in annual revenue from airport slots.
Villegas defended the initiative against concerns over Chicago’s reputation, saying, “Absolutely not.” He noted, “This would allow passengers to kill time while they’re waiting to fly out, delayed, or being rerouted. This would allow adults to kill some time, and [the city] to capture some dollars from visitors coming through the city and give Bally’s the ability to promote itself.”
Implementation Timeline and Comparison
If Chicago proceeds, slot machines are not anticipated to launch for at least another year. It remains to be seen whether airport gaming in Chicago will mirror the criticisms occasionally leveled at Las Vegas airport slots, which are sometimes regarded as among the least generous in Southern Nevada.
The exclusive slots license at Harry Reid International has been held by Michael Gaughan, owner of South Point Hotel Casino, for over 40 years. His company operates more than 1,000 machines at the airport.
Approximately 86.5% of the Las Vegas airport slot revenue supports Clark County operations. In 2022, Michael Gaughan announced that total revenue from airport slot machines had surpassed $1 billion over the previous 36 years.
| Airport | Slot Machines Offered | Key Revenue Point |
|---|---|---|
| Harry Reid International (Las Vegas) | Yes | Over $1 billion total slot revenue over 36 years |
| Reno-Tahoe International | Yes | Permitted |
| O’Hare and Midway (Chicago) | Proposed | Potential for up to $40 million annually (projection) |
- Author
Daniel Williams
