Bally's construction of its $1.7 billion permanent casino in Chicago has hit another snag. Over the weekend, the company announced a "reset" in the construction pace for some project components due to the city's new legalisation of video gambling terminals (VGTs).
On Saturday, Bally's informed the Chicago Community Builders Collective, which is managing the project, that work on non-gaming aspects such as the hotel tower, event centre, and restaurants will be paused indefinitely. However, the company confirmed that it still aims to open the casino itself by early 2027, as per their latest plans.
Bally's pointed out that the "uncontrolled proliferation" of VGTs within Chicago violates their Host Community Agreement (HCA) with the city. The HCA includes commitments that could be impacted by an increase in local gambling, such as a $4 million annual payment.
In a statement, Bally's expressed concern for the 1,500 union tradespeople currently working on the casino, stating, "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. We will continue to assess our options, which we hope will include more productive discussions with the mayor’s office and city council."
This is the fourth major setback for the Bally's Chicago project, which holds the city’s only casino license. Previously, construction was halted due to debris falling into the Chicago River and the presence of unapproved contractors on site. There was also a significant redesign of the hotel related to possible interference with city water lines before work could start.
The legalisation of VGTs in Chicago was part of a contentious budget process last year led by Mayor Brandon Johnson. His original budget proposal was replaced by a $16.6 billion alternative budget that was approved by the city council. This new budget allocated over $6 million in VGT licensing revenue, potentially leading to more than 2,500 permits for local businesses.
Since their introduction in Illinois in 2009, VGTs have become the state’s most lucrative gaming segment. In 2025, tax revenue from Illinois’ 17 licensed casinos totaled $430 million, significantly less than the $1.1 billion generated by VGTs. Prior to this budget action, Chicago had been among the last municipalities in Illinois without VGTs.
Bally's has openly opposed the VGT rollout since the new budget was passed. One proposal included installing slot machines at major airports like Midway and O'Hare to mitigate the anticipated revenue loss from VGTs, an idea that has yet to materialize. They estimate that the VGTs could lead to a loss of $74 million in revenue and numerous job cuts. A June hearing regarding VGTs held by the city's Committee on Workforce and Development was disrupted by conflicts among officials.
In preparation for a possible lawsuit regarding the VGT situation, Bally's hired Fahner Rosenberg PLLC in June, a firm that includes former Chicago mayor Lori Lightfoot as a partner. Bally's characterized this as a move to safeguard their investment in the city.
Earlier this year, Bally's also managed to secure a temporary extension for its casino license. Initially facing a September 9 deadline to complete the permanent casino, failure to meet this deadline would have required them to close their temporary location at Medinah Temple.
Although an extension bill (HB4437) was not passed before the legislative session concluded in June, the provisions from the bill were included in a larger revenue bill (SB3019) that did succeed. Thanks to this extension, Bally's now has until September 9, 2027, to open the permanent casino, barring any additional complications from the VGT construction issues, which might leave only the casino operational by that date.
