Bally's Corporation has announced a significant adjustment to its construction plans for the permanent casino in Chicago, valued at $1.7 billion. Over the weekend, the company indicated it is "resetting the pace of construction" for certain elements in light of the recent legalization of video gambling terminals (VGTs) within the city.
On Saturday, Bally's informed the Chicago Community Builders Collective, the general contractor responsible for the project, that work on specific non-gaming components, including the hotel tower, event center, and restaurants, would pause temporarily. Nevertheless, Bally's confirmed that it remains committed to opening the casino by early 2027, in accordance with its latest projections.
In its statement, Bally's expressed concern over the "uncontrolled proliferation" of VGTs in Chicago, claiming this development violates its Host Community Agreement (HCA) with the city. The company raised alarms that several commitments under the HCA, including an annual payment of $4 million, might be at risk due to this expansion of gambling.
"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," concluded the statement. "We will continue to assess our options, which we hope will include more productive discussions with the mayor’s office and city council."
This latest pause marks the fourth significant construction setback for Bally's Chicago, the only casino licensed in the city. Previous work stoppages occurred twice: once due to debris falling into the Chicago River and again when unauthorized contractors were seen at the site. Additionally, concerns about possible interference with city water lines led to a major redesign of the hotel before any construction commenced.
The legalization of VGTs emerged from a contentious budget process in 2022, which was led by Mayor Brandon Johnson. His budget proposal was set aside in favor of a $16.6 billion alternative plan put forth by the city council. This alternative budget allocates more than $6 million in VGT licensing revenue, which could result in over 2,500 licenses being awarded to local businesses.
Illinois legalized VGTs in 2009, and they became operational in 2012. Since then, VGTs have surged to become the state’s most lucrative gaming sector. In 2025, Illinois's 17 licensed casinos generated $430 million in tax revenue, less than half of the $1.1 billion earned from VGTs. Prior to these budget changes, Chicago was one of the last major municipalities in Illinois without VGTs.
While the rollout of VGT legalization has faced challenges, Bally's has consistently opposed it since the budget was approved. One proposed countermeasure was to introduce slot machines at Midway and O'Hare airports to mitigate expected revenue losses from VGTs; however, this initiative has yet to materialize. Bally's estimates that these VGTs could result in a $74 million revenue drop and significant job losses.
A June hearing on VGTs hosted by the city’s Committee on Workforce and Development ended abruptly amid disputes among officials. To prepare for a potential lawsuit against the city concerning the VGT issue, Bally's retained the law firm Fahner Rosenberg PLLC in June. Notably, former Chicago Mayor Lori Lightfoot, who faced criticism for awarding Bally's the casino license in 2022, is a partner at Fahner Rosenberg. Bally's referred to this legal hiring as part of its efforts to safeguard its investment in Chicago.
Earlier this year, Bally's successfully addressed a different pressing concern regarding its temporary license. The company was under pressure to meet a September 9 deadline to open the permanent casino or face the closure of its temporary site at Medinah Temple. Although the initial extension bill (HB4437) was not passed before the Illinois legislative session ended on June 1, similar language from that bill was included in the state’s 1,600-page omnibus revenue bill (SB3019), which successfully passed.
Due to the extension, Bally's now has until September 9, 2027, to open the permanent casino. Given the current controversy surrounding VGTs and the resulting suspension of non-gaming construction, it is likely that the casino will be the only part of the project completed by that date.
