Bally's Entertainment recently announced a significant change to the construction plans for its $1.7 billion permanent casino in Chicago, stating it will slow down the pace of building certain non-gaming components due to the city's approval of video gambling terminals (VGTs). On Saturday, Bally's informed the Chicago Community Builders Collective, the project's general contractor, that work on non-gaming aspects, including the hotel tower, event center, and restaurants, would be paused. Despite this setback, Bally's confirmed that it remains on schedule to open the casino itself by early 2027.
According to Bally's, the "uncontrolled proliferation" of VGTs in Chicago contravenes its Host Community Agreement with the city. This agreement includes several commitments that could be threatened by the increase in local gambling venues, among them a yearly payment of $4 million.
The company emphasized the potential impact of these interruptions on the 1,500 union tradespeople involved in the construction, stating, "We do not take this lightly… We will continue to assess our options, which we hope will include more productive discussions with the mayor’s office and city council."
This pause marks the fourth instance of construction delays for Bally's Chicago, the sole casino licensee in the city. Previously, work was halted due to debris falling into the Chicago River and the presence of unapproved contractors on-site. Additionally, changes to the hotel design were necessary after concerns about interference with city water lines were raised before construction officially commenced.
The introduction of VGTs in Chicago resulted from a contentious budget process last year under Mayor Brandon Johnson. His original budget proposals were overridden by a $16.6 billion plan that included over $6 million from VGT licensing fees, potentially leading to more than 2,500 licenses available to local businesses.
VGTs were legalized in Illinois in 2009, becoming operational in 2012. They have emerged as the state's most profitable form of gaming; in 2025, Illinois's 17 licensed casinos generated $430 million in total tax revenue, while VGTs accounted for $1.1 billion. Until recently, Chicago had been one of the few areas in the state without VGTs.
Bally’s has continuously opposed the expansion of VGTs, suggesting a strategy to mitigate losses by placing slot machines at Midway and O'Hare airports. This initiative has not progressed yet, but Bally's has projected losses of $74 million in revenue along with hundreds of jobs if VGTs significantly impact their business. A public hearing on the matter was abruptly halted in June amid internal disputes among city officials.
In preparation for a possible lawsuit against the city regarding the VGT issue, Bally’s engaged the legal firm Fahner Rosenberg PLLC in June. Among its partners is former Chicago Mayor Lori Lightfoot, who faced backlash for awarding Bally's the exclusive license in 2022. Bally's stated that the legal consultation is part of its efforts to safeguard its investment in Chicago.
Earlier this year, Bally's addressed another critical issue by securing an extension for its temporary casino license. With a deadline of September 9 looming, the company faced a potential shutdown of its temporary location at Medinah Temple. Although an extension bill was initially not passed, critical language was included in a broader omnibus revenue bill that ultimately passed in the Illinois legislature.
As now permitted, Bally's must open its permanent casino by September 9, 2027, factoring in the extension and the duration of its temporary casino operations. Given the current turmoil surrounding VGTs and the pause on non-gaming construction elements, it is uncertain if any part of the development will be ready by the deadline.
