The Chicago City Council is challenging Bally’s Corporation after the casino developer has delayed construction on its ambitious $1.7 billion venture in the River West district of the Windy City. In response, local authorities are insisting that Bally’s resume construction without delay or face potential legal repercussions.

On Sunday (Aug. 9), Bally’s Corporation informed the Chicago Community Builders Collective, the general contractor for Bally’s Chicago, that it was temporarily halting work on all non-gaming facilities.

The casino operator stated that this pause is in reaction to the Chicago City Council’s decision to authorize slot-like video gaming terminals (VGTs), which Bally’s believes infringes on its gaming exclusivity as defined in the Host Community Agreement.

A majority of the Chicago City Council responded with a letter to Bally’s, demanding that the company promptly resume all construction activity connected to the resort.

“Chicago did not agree to a casino floor alone. It committed to the entire development that Bally’s pledged to construct. The Council expects Bally’s to fulfill that project and anticipates the administration enforcing that promise,” stated a letter from 27 of the 50 aldermen.

The Chicago City Council is composed of 48 Democrats and 2 independents, with no Republicans having served since 2011.

Bally’s cessation of work has paused progress on significant components such as the 34-story, 500-room hotel, a 3,000-seat theater, and public greenspace along the Chicago Riverwalk.

Aldermen’s Expectations

The majority of council members who signed the letter to Bally’s assert that the company must honor the Host Community Agreement. This legally binding contract outlines the project’s specifications, including minimum resort details, annual fees, revenue sharing, and community benefits.

“Continuing work on the casino floor while delaying the hotel and other non-gaming elements does not absolve those responsibilities. The agreement specifically states that any removal of a component constitutes a Material Change, and such changes need City approval,” the aldermen noted.

“Final completion is contingent on the substantial completion of the hotel, restaurants, retail areas, event spaces, exhibition venues, greenspace, Riverwalk, and other elements—not just the opening of the gaming floor,” the Council asserted.

Bally’s Position

Bally’s claims that Chicago is failing to uphold its side of the Host Community Agreement by permitting gambling machines in places like restaurants, bars, social clubs, and truck stops.

“We are eager to address the City Council regarding the reasons behind our construction schedule reset. We acknowledge and are committed to our obligations under the Host Community Agreement concerning jobs and capital investment. We have honored our end of the deal and will continue to do so.”

Bally’s Chicago

Last fall, Chicago approved VGTs and included the anticipated revenue from these machines in its budget, despite pushback from Mayor Brandon Johnson.

“The concerns that Bally’s has align with my own, which I voiced to City Council members,” Johnson remarked. “This situation was somewhat predictable.”

A hearing with Bally’s is expected to be scheduled soon by the City Council to further discuss the unfolding situation.