Chicago Aldermans Call: The Fight for Gambling Regulation and VGT Legalization
Chicago Alderman Discusses the Need for Gambling Regulation
Longtime Chicago Alderman Pat O’Connor (D-40th Ward) declares it’s time for the city to embrace video gaming terminals (VGTs) and harness the financial benefits of regulated gambling.
O’Connor, who is Chicago Mayor Rahm Emanuel’s floor leader in the City Council, has been a loyal supporter of the mayor. However, his newfound support for VGTs marks a significant departure from Emanuel’s stance.
The alderman, who has served on the City Council for nearly 36 years without previously supporting gambling, argues that if Chicagoans accept VGTs, the city should regulate them.
“While a casino is certainly something that people are looking at, that’s several years away,” O’Connor told the Chicago Sun-Times. “This is a much more immediate potential.”
As chair of the City Council Finance Committee, O’Connor believes that tax revenue from gaming could help stabilize the city’s beleaguered pension system. “It is a revenue source that, right now, is going on under our noses untapped,” he said.
Regulate and Tax
Chicagoans are already familiar with the presence of video gaming machines throughout the city, commonly found in gas station convenience stores, laundromats, and bars. These so-called “sweepstakes” devices offer everything from store credit to cash payouts, which can be illegal.
By regulating VGTs, O’Connor suggests that the city could also impose taxes on winnings.
It’s not a panacea. However, I believe we could potentially generate $80 million a year in revenue,” O’Connor stated. “The Council might disagree with me; the mayor certainly disagrees with me. But, factually speaking, this is a legitimate option.”
Chicago is strongly Democratic, with 49 of the 50 City Council seats held by Democrats, one by an Independent, and one by a Republican.
As the race for Emanuel’s successor heats up, O’Connor’s viewpoint could influence the discussions on gambling regulation, especially with several Democratic candidates in the running.
Pension Problems
Chicago faces numerous challenges, including a significant underfunded pension program, which has become a critical issue not just in the city but across Illinois. Statewide, the unfunded pension liability stands at an astounding $133 billion.
According to retirement expert Elizabeth Bauer writing for Forbes, “There is no realistic solution to Chicago’s pension underfunding that doesn’t involve benefit cuts.”
Emanuel had previously requested the City Council to issue up to $10 billion in pension obligation bonds for immediate capital influx. However, he has indicated that the decision will rest with his successor, who will be elected in the upcoming November elections.
Though the mayor has often positioned himself against gambling, he lightened his stance at the end of last year, calling on the Illinois General Assembly to consider legalizing recreational marijuana and commercial casinos.
“If the state pursues this path, those resources could and should be redirected to solidify our pensions without further burdening Chicago taxpayers,” Emanuel stated.
In summary, Alderman O’Connor’s push for VGTs reflects a burgeoning dialogue around gambling regulation in Chicago, highlighting potential financial benefits to combat pressing municipal challenges. Chicago’s ongoing pension woes underscore the urgency of exploring diverse revenue streams, casting the spotlight firmly on the gambling debate.
