Bally’s has decided to pause the construction of various non-gaming amenities at its $1.7 billion permanent casino complex in Chicago, intensifying its conflict with the city regarding the expansion of video gambling terminals (VGT).
This construction delay impacts the development of a 500-room hotel, an events center, restaurants, a food hall, and other entertainment options at the River West site, although the casino is still expected to open in early 2027, according to Bally’s.
Approximately 1,500 union construction workers have been put on hold due to this slowdown.
In a statement, Bally’s informed the Chicago Community Builders Collective (CCBC) that it is adjusting the construction timeline for parts of its permanent casino project.
The company contends that the city’s decision to permit VGTs violates the 2022 Host Community Agreement, which Bally’s claims included a pledge not to expand gaming activities in the area.
This situation introduces uncertainty that could negatively affect the future of Bally’s Chicago, the company stated.
Last fall, Chicago approved video gambling, and aldermen incorporated revenue from these terminals into the city’s 2026 budget to help cover a $6.8 million funding shortfall. As of last month, there were 268 pending applications for VGT locations in Chicago submitted to the Illinois Gaming Board, but none had received approval to operate.
According to data from the Illinois Gaming Board, the state has nearly 50,000 VGTs across over 8,700 locations, which have increasingly competed with casinos for gambling revenue.
Local media reports suggest that Bally’s is contemplating withholding a $4 million annual payment due to the city in September until the dispute over VGTs is settled.
The implications of this disagreement go beyond the payment, as Chicago anticipates that the permanent casino complex will generate around $200 million in annual local tax revenue.
Bally’s secured the rights to develop the permanent casino in 2022 following a competitive selection process led by then-Mayor Lori Lightfoot. The proposed complex will feature a 3,000-seat theater, 10 restaurants, and 4,000 gaming positions.
Construction commenced in August 2024, and the 34-story hotel has already reached its full height. Bally’s has also been operating a temporary casino at the Medinah Temple in Chicago’s River North area since 2023.
Sources indicate that the company is committed to meeting its obligations under the Host Community Agreement while delaying the launch of the hotel and other amenities until the VGT issue is resolved.
If the city retracts its plans for video gambling, Bally’s could accelerate construction, according to insiders.
“We do not take this lightly due to the potential impact on many of the 1,500 union tradespeople who have been diligently working to build Bally’s Chicago,” Bally’s stated. “We will continue to evaluate our options, which we hope will involve more constructive discussions with the Mayor’s Office and City Council.”
Bally’s has engaged the law firm RKF Global to assist in navigating this dispute. Lightfoot, who was instrumental in selecting Bally’s for the development of Chicago’s first casino, is currently employed by the firm.