CHICAGO — A hearing on reversing Chicago’s legalization of video gambling terminals ended abruptly Wednesday after protests from opponents of Mayor Brandon Johnson escalated into a call for a commissioner to resign.

The Workforce Development Committee met to debate an ordinance being pushed by the mayor to authorize an agreement with Bally’s Chicago, the city’s first casino developer, that would ban video gambling terminals.

The arrival of the controversial machines has been a major sticking point between Johnson and the aldermanic opposition that passed this year’s budget over his objections, with the package relying on video gambling legalization to plug in $6.8 million.

During Wednesday’s hearing, held in a committee chaired by mayoral ally Ald. Michael Rodriguez, Johnson’s acting CFO Steven Mahr said the city’s contract with Bally’s will be “at risk” if the repeal does not pass. Bally’s executives also met with the Tribune editorial board Tuesday and said they interpret the agreement as saying the company does not need to pay the city $4 million in annual impact fees if it loses a monopoly on slot machines.

Mahr added that the city is estimated to earn about 4.5 times as much per dollar on casino slot machines as on the terminals, which are set to proliferate in bars and restaurants throughout Chicago thanks to the budget deal.

“Tax revenues from video gaming terminals will be offset by losses of casino tax revenues,” Mahr said. “The expected net tax revenue is negative — is negative — or only marginally positive in the near term.”

Christopher Jewett, Bally’s senior vice president, agreed that legalizing video gambling jeopardizes its agreement with the city.

“Bally’s entered the (agreement) and made these commitments on the premise that the city would adhere to its long-standing agreement to prohibit VGTs,” Jewett said. “Had we known that within just a few years this body would reverse course and allow an alternative form of gaming that breaches the agreement, we would never agree to the numerous commitments, all of which we’ve held up.”

Jewett instead pitched substituting that revenue with airport slot machines, saying each terminal at O’Hare International Airport and one at Midway International Airport can support one lounge. However, nothing precludes Bally’s from proceeding with that plan right now, irrespective of the fate of the terminals.

North Side Ald. Debra Silverstein, a member of the aldermanic opposition, questioned why the ordinance was not being discussed in the License Committee, which she chairs and where video gambling legislation has previously been considered.

“VGTs were voted on in our last budget, and the city is currently relying on that revenue,” Silverstein said, before calling out Business Affairs and Consumer Protection Commissioner Ivan Capifali. “And I’m just wondering why (Capifali) chose to put this ordinance through Workforce Development as opposed to the License Committee, where it belongs.”

A representative with Johnson’s Law Department responded that the ordinance has a “significant workforce development component” because it authorizes Bally’s to provide training opportunities to Chicagoans who want to work at the casino.

West Side Ald. Jason Ervin, Johnson’s budget chair, added that the original legislation legalizing VGTs came through his committee during the 2026 budget process, not License — “which of itself was inappropriate.”

“I liken this to the deal that at the time Congressman (Dan) Lipinski … (voted) to bring us the Orange Line, which was beneficial to the city, but it also funded the Iran-Contra affair too, so let’s not split hairs here as relates to jurisdictional items,” Ervin said.

Ervin also agreed with the move to allow slot machines in the airports instead, arguing that the revenue from allowing gambling terminals across the city at the expense of Bally’s is akin to “tripping over hundred dollar bills to pick up nickels.”

Then Ald. Anthony Beale, a staunch mayoral opponent, accused the Workforce Committee under Rodriguez of “trying to carry out whatever agenda it is that this administration has” and said the Johnson administration’s numbers were “speculative” at best given that no terminals are up and running yet under the legalization framework.

Beale has argued that the $6.8 million the budget counts on will come from licensing fees, but the gambling machines will eventually bring in far more revenue when thousands are operating across Chicago’s neighborhoods and winnings are taxed.

His subsequent exchange with Capifali over what he described as the city’s lax enforcement with illegal sweepstakes machines ultimately blew the meeting up.

“This is a circus, OK? That’s all this is, is a circus, and we’re doing all of ourselves a disservice by even talking about this right now,” Beale said. “And Ivan, I’m sorry, man. You make excuses left and right. Your integrity is zero. You have none. … Ivan, commissioner, I believe that you need to resign because you are doing a disservice to the city of Chicago.”

Beale then immediately moved to adjourn the meeting, and a majority of the aldermen in attendance backed his motion, ending the proceeding.

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