Published on: June 25, 2026, 07:58h.
Updated on: June 25, 2026, 07:58h.
- Bally’s Corporation is considering litigation against Chicago, claiming the authorization of numerous video gaming terminals that resemble slots undermines the exclusivity it was promised during the agreement to develop a $1.7 billion casino
- Company officials indicated that had they anticipated the city would permit VGTs, their bid and host agreement would have been structured differently
- Bally’s asserts that the broad expansion of VGTs may threaten both casino employment and tax revenue, advocating for alternatives such as being allowed to operate slot machines at airports in Chicago
Bally’s Corporation is poised to take legal measures against the City of Chicago regarding the approval of video gaming terminals that mirror slot machines (VGTs).
Bally’s is constructing a $1.7 billion casino resort in the River West area, located on the historic site of the Tribune Freedom Center, which was previously the printing plant for the Chicago Tribune and Chicago Sun-Times.
Representatives from the Rhode Island-based casino company claim that their 2022 proposal for the city’s single casino license would have taken a different form had they known Chicago would soon approve the placement of thousands of VGTs in local eateries and bars.
“We were promised exclusivity,” stated Christopher Jewett, the senior vice president of corporate development for Bally’s, during a meeting with the Workforce Development Committee, which was reviewing a request from Mayor Brandon Johnson to rescind the 2025 VGT authorization.
Jewett indicated that with the benefit of hindsight, the Host Community Agreement signed by Bally’s does not favor the company. He warned that unless VGTs are revoked, Bally’s is prepared to void the terms and pursue legal action to renegotiate the agreement.
All Options Considered
The Bally’s Host Community Agreement mandates the casino to act in good faith towards hiring a specified number of minorities, veterans, and persons with disabilities, as well as contracting with minority- and women-owned businesses.
“Diversity in the workplace enhances employee creativity, innovation, decision-making capabilities, and overall job satisfaction,” notes the Host Community Agreement. Furthermore, the agreement compels Bally’s to “make commercially reasonable efforts” to provide at least 3,000 permanent resort positions, which will predominantly be union-represented.
In advocating for the repeal of the VGT ordinance, Jewett highlighted another stipulation in the Host Community Agreement that permits its terms to be renegotiated if a new casino opens, if a tax increase on casino gambling is enacted, or if the city allows “a mode of lawful gaming to occur in the city” beyond Bally’s Chicago.
“Exclusivity influenced our bid value. Had we known exclusivity was not guaranteed, our bid would have been entirely different,” Jewett remarked. “If Chicago develops a reputation that a negotiated, legally binding contract lacks validity, it sends a detrimental message about the city’s reliability in upholding agreements.”
The Bally’s executive stated that Chicago risks undermining union jobs and potential hundreds of millions in tax revenue through its reliance on VGTs.
Advocates for the VGTs argue that they will provide support to small businesses and that additional local revenues are essential for tackling Chicago’s long-standing financial issues. However, financial forecasts vary widely depending on the assumptions made regarding increases in law enforcement expenses.
According to the City Council’s Office on Financial Analysis, it is estimated that the city would collect around $64 million yearly from VGTs once nearly 20,000 devices are operational.
Mayor Johnson’s team estimates that the actual benefits will likely be significantly smaller due to increased law enforcement costs linked to a rise in 9-1-1 calls related to crimes near the VGTs and their host establishments.
Slot Machines in Chicago Airports
During a recent discussion surrounding VGTs, Jewett proposed that if the City Council is not inclined to reverse its decision, one potential compromise could involve granting Bally’s permission to operate slot machines at the city’s airports.
Jewett mentioned that Bally’s would need authorization to install slots in each of the four terminals at O’Hare, with each terminal expected to accommodate around 100-125 slot machines.