Alderman Pat O'Connor Proposes Video Gaming Terminals to Address Chicago's Pension Crisis
Chicago Alderman Pat O'Connor Advocates for City's Legalization of Video Gaming Terminals
In a surprising turn of events, Alderman Pat O'Connor, a longtime ally of Chicago Mayor Rahm Emanuel, has expressed support for video gaming terminals (VGTs) in Chicago as a potential solution to the city's significant pension crisis.
For over three decades, Alderman O'Connor (D-40th Ward) has served on City Council, but he hasn't publicly supported gambling until now. His proposal comes at a time when Chicago's pension program is underfunded, with an estimated unfunded liability of over $133 billion (state-wide), a hurdle that has long plagued the city's politicians.
The Case for VGTs
According to Alderman O'Connor, the revenue generated from taxing VGTs could amount to $80 million a year. He believes that if Chicagoans accept VGTs, the city government should regulate the machines to ensure fair play and prevent any potential negative impacts.
VGTs are already widespread in Chicago, found in gas stations, laundromats, bars, and restaurants. However, the sweepstakes devices found in these locations payout in store credit and cold, hard cash, which is currently illegal.
Addressing the Pension Problem
If legalized, the revenue generated from VGTs could be directed towards various city funds, including pension programs. Alderman O'Connor suggests that this revenue could help address Chicago's pension problem.
However, it's important to note that the specific impact on the pension program is unclear. The financial benefits might not justify the legalization of VGTs, as Mayor Brandon Johnson's team has expressed concerns.
Broader Implications
The expansion of VGTs could reinforce the industry's influence in state politics, potentially affecting other gaming-related policies, such as the legalization of online casinos. The presence of VGTs might also impact the financial viability of other gaming ventures in the city, such as the proposed Bally's casino, by diverting potential revenue streams.
As of now, video gaming terminals are not allowed in Chicago, but there are ongoing efforts to legalize VGTs both at the city's airports (O'Hare and Midway) and in local establishments like bars and restaurants. Two ordinances were introduced at the last City Council session before the August 2025 recess, paving the way for significant debate and potential votes later in the year.
The potential financial impact of legalizing VGTs on Chicago's pension program, along with the broader implications, will be topics of intense debate in the coming months. The decision to legalize VGTs could provide Chicago with additional revenue streams and flexibility in managing financial obligations like pensions, depending on how revenues are allocated.
[1] Chicago Tribune, "Chicago aldermen push to legalize video gaming terminals at O'Hare and Midway airports, in bars and restaurants," 2023. [2] Forbes, "No Realistic Solution to Chicago's Pension Underfunding Doesn't Involve Benefit Cuts," Elizabeth Bauer, 2021. [3] Crain's Chicago Business, "Chicago's proposed video gaming terminals could impact Bally's casino," 2023. [4] Chicago Sun-Times, "Chicago City Council introduces ordinances to legalize video gaming terminals," 2023.
The proposal by Alderman Pat O'Connor to legalize video gaming terminals in Chicago, a move previously unfathomable, is not only a shift in gambling trends but also a potential political maneuver to address Chicago's significant pension crisis. This move could have broader implications, including the reinforcement of the gaming industry's influence in state politics and potential effects on other policies, such as the legalization of online casinos.
The debate surrounding the legalization of video gaming terminals, especially regarding their potential financial impact on Chicago's pension program, is likely to be a topic of intense discussion in the coming months, with the decision potentially providing additional revenue streams and flexibility in managing financial obligations like pensions.
