Bally’s Chicago fulfills its $4 million annual commitment to the city despite ongoing tensions with the local government.

Despite previous threats to withhold the annual contribution, Bally’s made the $4 million payment on Wednesday (Sept. 9) citing concerns that the city is not fulfilling its obligations under the Host Community Agreement (HCA). The HCA mandates Bally’s Chicago to pay the city an annual direct impact fee of $2 million and an additional $2 million as an indirect impact fee.

As per the HCA terms, Bally’s Chicago is required to make these community impact payments yearly on Sept. 9, the date the temporary casino at Medinah Temple opened in 2023.

In addition to the annual commitments, Bally’s also paid a one-time $40 million to Chicago upon the signing of the HCA on June 9, 2022.

Dispute Over Video Gaming

Following the approval of slot-like video gaming terminals (VGTs) by the City Council, Bally’s Chicago paused construction on non-gaming elements of the $1.7 billion casino project. This included work on the hotel, theater, convention space, restaurants, bars, and public greenspace connecting to the Chicago Riverwalk.

The City Council approved VGTs as part of its 2026 budget, with an estimated revenue of $7 million annually. Mayor Brandon Johnson and his predecessor, Lori Lightfoot, have opposed VGTs, with Lightfoot being the one who negotiated the casino deal with Bally’s.

According to the HCA, if Chicago allows a new casino, increases gaming taxes, or authorizes new forms of gambling under the Illinois Gambling Act, Bally’s can renegotiate its annual impact fees. However, VGTs were legalized separately from the Illinois Gambling Act through the Video Gaming Act in 2009.

Bally’s Update

With demands from the City Council to resume construction and Bally’s claim that it would not have bid for the project if it knew about the VGTs, the company plans to provide an update on Monday (Sept. 14).

Executive Chairman Soo Kim and other Bally’s executives will discuss the project’s progress and recent developments during the scheduled conference at 12 pm ET.