Slots at Midway are still just talks, and O'Hare's biggest concessions award is weeks from the Council, the Aviation commissioner says

Bally's has floated putting slot machines in a new concession space at Midway Airport, but no deal has come of it, and the Aviation commissioner told the City Council's budget committee Tuesday that it has "been a while" since the department heard from the company. Alderpersons who want the revenue were not pleased.

Why it matters: casino revenue is pledged to police and fire pensions, and the City is counting every dollar as it closes a 2027 budget gap. Separately, the commissioner said a recommendation is coming "any day now" on new food, drink and shopping concessions for O'Hare's Terminals 1 and 3, which the commissioner called one of the largest airport concessions requests for proposals in the country.

Video and a transcript of the Department of Aviation's hearing are on our meeting page.

What was said

Slots at Midway. Ald. Anthony Beale (9th) asked about video gaming at the airports (watch at 3:25:49). The commissioner said there have been talks with Bally's about slots at Midway only, that Bally's submitted "a very preliminary proposal," and that the commissioner had told the company slot machines should not go in gate waiting areas. Beale said the issue came up last year and "we're still having conversations instead of action" (watch at 3:27:44). He said the City needs the revenue "extremely bad." The commissioner said the department was waiting for the talks with Bally's to continue.

Where the money goes. Ald. Marty Quinn (13th) said it was "beyond aggravating" that alderpersons learned of the Midway talks from the newspaper last year, and asked the department to keep the Council informed (watch at 3:35:41). Quinn's ward includes the area around Midway, and he has said before that the plan blindsided him, as we reported in an Oct. 16 profile. Asked whether slot revenue would stay in the airport fund or come to the City, the commissioner said concession revenue generally stays at the airport, but was not certain how slots would be treated and agreed to find out.

O'Hare concessions. Beale asked why the O'Hare concessions contract is behind (watch at 3:29:14). The commissioner said the request for proposals covered 144,000 square feet in Terminals 1 and 3 and drew 167 proposals. Outside consultants have finished reviewing them, and the commissioner expects a recommendation of award "any day now," then 30 to 45 days of review and negotiation before it goes to the Aviation Committee and then the full Council. Ald. Michael Rodriguez (22nd) asked whether the Mayor's office plays a role in selection; the commissioner said that authority rests with the Aviation commissioner (watch at 5:08:07). Ald. Bennett Lawson (44th) asked why so much space was bid at once and how applicants' finances are being rechecked two years after they applied; the commissioner said O'Hare's terminals had gone about 20 years without a refresh (watch at 5:15:42).

Noise windows. Quinn also asked about replacing windows that developed odors in homes soundproofed under the airports' Residential Sound Insulation Program. The commissioner said the work is split into four phases, starting with 225 homes, with construction expected to begin early next year (watch at 3:37:54).

The budget. The Council's financial analysts said the department's proposed 2027 budget is about $1.78 billion, up roughly $116 million, or 7%, with 2,476 positions and no money from the City's corporate fund (watch at 2:47:56).

What our records add

The casino vote. The Council approved the casino ordinance 42 to 6 in May 2022, and Bally's host community agreement 41 to 7. Most current members were not on the Council then.

Bally's this week. At Monday's hearing, the City's chief financial officer said she had seen no evidence of a construction stoppage at Bally's permanent casino and was waiting on the company before granting an extension, as we reported.

The Aviation chair. In opening remarks, the commissioner thanked Ald. Matt O'Shea (19th), who has chaired the Aviation Committee for more than eight years, and noted this was his final Aviation budget hearing as chair (watch at 2:53:15). O'Shea is not running for reelection; his committee would take up the O'Hare award first.

What's next

• Within weeks: the O'Hare concessions recommendation, then the Aviation Committee and the Council.
• Nov. 4 to 10: budget hearings continue.
• Dec. 8 and 9: the Council's next regular meetings.