Bally’s has significantly reduced the pace of construction on most non-gaming features at its ambitious $1.7 billion permanent casino complex in Chicago, heightening tensions with the city regarding the potential growth of video gambling terminals (VGT).
This slowdown in construction impacts the envisioned 500-room hotel, event space, dining options, food court, and various entertainment venues within the River West development, although the casino itself continues to be scheduled for a launch in early 2027, according to Bally’s.
Approximately 1,500 union construction workers have been temporarily sidelined due to this construction delay.
In a statement, Bally’s specified that it has notified the Chicago Community Builders Collective (CCBC) regarding a reset in construction timelines for aspects of Bally’s Chicago permanent casino.
Bally’s contends that Chicago’s decision to permit video gambling terminals violates the 2022 Host Community Agreement between the city and the company, which reportedly included a guarantee against expanding gaming options in the community.
The change “creates uncertainty that could adversely affect Bally’s Chicago’s future,” stated the company.
Chicago greenlit video gambling last autumn, incorporating revenue from these terminals into the city’s 2026 budget to bridge a $6.8 million funding deficit. As of last month, there were 268 pending applications for VGTs within Chicago awaiting approval to commence operations.
According to data from the Illinois Gaming Board, Illinois houses nearly 50,000 VGTs spread across more than 8,700 locations, which have increasingly begun to compete with casinos for gambling revenue in the state.
Bally’s is contemplating postponing a scheduled annual payment of $4 million to the city, due in September, until the dispute over VGTs is settled, according to local news sources.
The implications go beyond the payment issue, with Chicago estimating that the permanent casino will generate around $200 million in local tax income annually.
In 2022, Bally’s secured the opportunity to establish the permanent casino following a competitive selection process led by the former Mayor Lori Lightfoot. The planned facility encompasses a 3,000-seat theatre, 10 dining establishments, and 4,000 gaming positions.
Construction commenced in August 2024, and the hotel, a 34-story structure, has already achieved its full height. Additionally, Bally’s has been operating a temporary casino at the Medinah Temple in the River North area since 2023.
Bally's has reached full structural height recently.
Insider sources indicate that the company plans to adhere to its commitments outlined in the Host Community Agreement, albeit with a slowdown in the launch of the hotel and other amenities until the VGT issue is clarified.
If the city retracts its move regarding video gambling, Bally’s could potentially expedite construction activities, according to sources.
“We are taking this matter seriously due to the possible repercussions for the 1,500 union workers who have diligently contributed to the construction of Bally’s Chicago,” Bally’s stated. “We will continuously review our alternatives, which we hope will include more constructive talks with the Mayor’s Office and City Council.”
Bally’s has engaged the law firm RKF Global to assist in navigating this ongoing dispute. Lightfoot, who played a pivotal role in selecting Bally’s to develop Chicago’s inaugural casino, is affiliated with the firm.