Bally's has announced a shift in the construction timeline for its $1.7 billion permanent casino in Chicago, reaffirming its commitment to opening in early 2027 but halting certain non-gaming components. This decision comes in response to the legalization of video gambling terminals (VGTs) within the city.
The company communicated on Saturday to the Chicago Community Builders Collective, the general contractor for the project, that work on non-gaming elements, including the hotel tower, event center, and restaurants, would be paused. Bally's stated that the surge of VGTs within Chicago conflicts with its Host Community Agreement with the city, potentially jeopardizing commitments such as an annual payment of $4 million.
Bally's emphasized the seriousness of this issue, particularly its impact on around 1,500 union workers involved in constructing the Chicago facility. The company expressed hope for productive discussions with city officials and the mayor's office.
This latest construction delay is the fourth for Bally's Chicago, which holds the city’s only casino license. Prior halts included instances of debris tumbling into the Chicago River and the presence of unapproved contractors at the site. A redesign of the hotel was also necessitated by concerns regarding city water lines before construction began.
The legalization of VGTs stemmed from a contentious budget process last year led by Mayor Brandon Johnson. His initial budget was overridden by a $16.6 billion alternative approved by the city council, which allocated over $6 million in VGT licensing revenue, suggesting the potential for more than 2,500 business licenses.
Illinois legalized VGTs in 2009, launching them in 2012. These terminals quickly became the most profitable gaming option in the state, with total tax revenue from Illinois's 17 licensed casinos reaching $430 million in 2025, whereas VGTs generated $1.1 billion. Prior to the recent budget process, Chicago had remained one of the few municipalities in Illinois without VGTs.
Despite the chaotic rollout of the VGT legalization this year, Bally's has actively opposed their implementation since the budget approval, even proposing the installation of slot machines at both Midway and O'Hare airports to counter the expected revenue loss. Estimates suggest that VGTs could lead to a loss of $74 million in revenue and threaten numerous jobs. A Chicago hearing on VGTs focused on workforce development was abruptly cut short due to conflicts among officials.
In anticipation of a possible lawsuit against the city regarding the VGTs, Bally's enlisted the legal services of Fahner Rosenberg PLLC in June, a firm that includes former Chicago mayor Lori Lightfoot as a partner. Bally's framed this decision as part of its efforts to "protect [its] investment" in the city.
Earlier this summer, Bally's managed to secure an extension for its temporary license, which was set to expire on September 9. This extension arose amid concerns that the temporary casino at Medinah Temple would have to shut down if the permanent facility wasn't opened on time. Although a standalone extension bill (HB4437) did not pass before the legislative session ended on June 1, the extension language was incorporated into a broader omnibus revenue bill (SB3019), which did succeed.
Now, Bally's can operate until September 9, 2027, to open the permanent casino. Given the ongoing VGT-related construction dispute, it's possible that by this deadline, only the casino itself may be ready for operation.
