Bally's has announced a shift in the construction schedule for its $1.7 billion permanent casino in Chicago, stating that it will pause work on certain non-gaming components. The decision comes after the legalization of video gambling terminals (VGTs) in the city, which Bally's claims breaches their Host Community Agreement with Chicago. The impacted construction includes the hotel tower, event center, and restaurants; however, the opening date for the casino remains set for early 2027, according to Bally's latest estimates.
The company emphasized that the "uncontrolled proliferation" of VGTs threatens several commitments in the agreement, including a $4 million annual payment. In a statement, Bally's expressed concern about the implications for the 1,500 union workers involved in the construction, 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…"
This marks the fourth major construction delay for Bally's, the only holder of a casino license in Chicago. Construction has previously halted due to safety issues, including debris falling into the Chicago River and unapproved contractors accessing the site. There was also a significant redesign of the hotel before work commenced due to potential conflicts with city water lines.
The introduction of VGTs in Chicago stemmed from a complex budget negotiation led by Mayor Brandon Johnson last year. His initial budget proposal was overridden in favor of a $16.6 billion alternative, which included $6 million in revenue from VGT licensing for local businesses, amounting to more than 2,500 licenses.
VGTs have been legal in Illinois since 2009, with their operations commencing in 2012. They have since eclipsed traditional gaming revenue; in 2025, VGTs generated $1.1 billion in tax revenue, compared to $430 million from Illinois' 17 licensed casinos. Chicago had been one of the last areas in the state to allow VGTs prior to this budgetary change.
While Bally's has fought against the implementation of VGTs, considering proposals like installing slot machines at Midway and O'Hare airports to mitigate revenue losses, these ideas have yet to materialize. The company estimated that such measures could lead to a $74 million deficit and job losses. A June committee hearing on the VGT issue was abruptly halted due to conflicts among city officials.
As Bally's prepares for a potential lawsuit regarding the VGTs, it hired the law firm Fahner Rosenberg PLLC in June. This firm includes former Chicago mayor Lori Lightfoot as a partner, who faced criticism for choosing Bally's as the exclusive licensee in 2022. Bally's described the legal partnership as part of its strategy to safeguard its investment in Chicago.
On a separate note, Bally’s secured an extension earlier this year for its temporary casino license, which was set to expire on September 9. An extension bill filed in January initially stalled, but provisions from it were incorporated into a broader revenue bill that passed. As a result, Bally's now has until September 9, 2027, to complete its permanent casino. Given the recent stalemate over the non-gaming construction, it is possible that only the casino would be operational by that time.
