Bally’s has announced a significant shift in the construction timeline for its $1.7 billion permanent casino project in Chicago, stating it will temporarily halt work on various non-gaming components. This decision comes in response to the city’s recent legalization of video gaming terminals (VGTs). The company communicated this change over the weekend to the Chicago Community Builders Collective, the project's general contractor, indicating that the construction of the hotel tower, event center, and restaurants is now on hold. Despite this setback, Bally’s remains committed to an opening target for the casino itself in early 2027, consistent with its latest projections.
In a statement, Bally's expressed concerns over the “uncontrolled proliferation” of VGTs within the city, claiming that such developments threaten the integrity of its Host Community Agreement with Chicago. Several commitments outlined in this agreement, including an annual payment of $4 million, are at risk due to the expansion of gambling in the city.
The statement elaborated, “We do not take this lightly because of the potential impact on many of the 1,500 union trades people who have been working hard to build Bally’s Chicago.” It concluded with a commitment to continue exploring options, including engaging in discussions with the mayor’s office and city council.
This pause in construction marks the fourth major disruption for Bally’s Chicago, which holds the city’s only casino license. Previous construction halts occurred due to debris falling into the Chicago River, the presence of unapproved contractors on site, and necessary redesigns of the hotel to avoid interference with city water lines.
The legalization of VGTs in Chicago was part of a contentious budget approval process last year involving Mayor Brandon Johnson. His initial budget proposal was overshadowed by a $16.6 billion alternative budget passed by the city council, which included more than $6 million in expected revenue from VGT licenses, roughly equating to over 2,500 licenses for local businesses.
Illinois legalized VGTs in 2009, with the terminals becoming operational in 2012. These have since emerged as a dominant gaming sector in the state, generating $1.1 billion in tax revenue for the state in 2025, while the total tax revenue from the 17 licensed casinos was only $430 million. Before the budget changes, Chicago was among the few municipalities in Illinois without VGTs.
As the rollout of VGTs progresses chaotically this year, Bally’s has consistently opposed the measure since the city approved the budget. One potential strategy to counter the lost revenue from VGTs involves installing slot machines at Midway and O’Hare airports, although this proposal has not yet moved forward. Bally's estimates that these machines could result in a revenue decline of $74 million and jeopardize hundreds of jobs. A June hearing related to VGTs that was organized by the city’s Committee on Workforce and Development was cut short amid disputes among officials.
In light of the circumstances surrounding VGTs, Bally’s retained Fahner Rosenberg PLLC in June for potential legal action against the city. Notably, former Chicago mayor Lori Lightfoot, criticized for choosing Bally’s as the exclusive casino licensee in 2022, is a partner at the law firm. The company stated that this legal consultation is part of its efforts to safeguard its investment in the city.
Earlier this year, Bally’s successfully navigated a potential licensing deadline. Facing a September 9 deadline for its temporary casino to operate, pending the opening of the permanent facility, the company had risked closure of its temporary location at Medinah Temple. Although an extension bill was not passed before the Illinois legislative session ended on June 1, similar provisions were incorporated into a larger omnibus revenue bill, which did pass. As a result, Bally's now has until September 9, 2027, to complete the permanent casino, even as disputes surrounding non-gaming construction raise doubts about the project’s timeline.
