Bally's Corporation is facing growing challenges this summer as it manages its projects in Chicago and Las Vegas while preparing for its upcoming resort in New York. In Chicago, Bally's recently secured an extension for its temporary license just before the state legislature adjourned on June 1, which brought some relief as construction advances on its $1.8 billion permanent casino. However, a new competitor has emerged in the form of video gaming terminals (VGTs) within the city.
Last year, Chicago Mayor Brandon Johnson experienced a difficult budget process, eventually yielding to a city council alternative that lifted the ban on VGTs. The approved budget anticipated $6.8 million in revenue from VGT licensing, based on an assumption that around 80% of the 3,300 eligible liquor licensees would apply for the machines. Reports indicate that nearly 300 venues have already submitted applications.
Tensions surrounding VGTs remain high, as city officials continue to dispute the issue. A contentious meeting held on Wednesday adjourned without resolution, during which Bally's proposed installing slot lounges at O'Hare and Midway airports, claiming these could accommodate the city's anticipated $6.8 million revenue from VGT licensing.
Christopher Jewett, Bally's senior vice president of corporate development, stated, "We believe one lounge can generate approximately $5 million in actual gaming and admission taxes, which go directly to the city. This alone can replace the revenue in question."
Despite Bally's attempts to establish its position, the introduction of VGTs poses a significant threat, with the company estimating a potential loss of roughly $75 million in annual revenue and about 1,000 jobs from both its temporary and permanent casinos. Bally’s secured a community agreement for the Chicago license, which includes a $4 million annual payment to the city. However, the legalization of VGTs could invalidate these agreements, possibly leading to legal disputes.
The financial potential of VGTs is considerable. As of 2026, Illinois casinos recorded $889.5 million in total adjusted gross receipts and $53.6 million in local taxes, whereas VGTs earned $1.4 billion in net terminal income and contributed $68.5 million in local taxes. More than 1,100 municipalities in Illinois have embraced VGTs, with Chicago being one of the last major holdouts.
Jewett expressed frustration to the council, noting, "Had we known that, within just a few years, this body would reverse course and allow an alternative form of gambling that breaches the agreement, we would never agree to the numerous commitments, all of which we’ve held up."
In Las Vegas, Bally's is concurrently grappling with pressures related to its $1.2 billion mixed-use development near the forthcoming MLB stadium for the Oakland Athletics, which is scheduled to open in spring 2028. While the ballpark project remains on schedule, uncertainty looms over Bally's development, leading to speculation that the Athletics might build necessary infrastructure independently, potentially inflating costs by $100 million according to reports from The Athletic.
Steve Hill, president and CEO of the Las Vegas Convention and Visitors Authority, indicated that Bally's may lack adequate financing for its project. The LVCVA has requested that Bally's provide a future construction plan by August. Bally's addressed queries from the Nevada Gaming Commission, clarifying that while the stadium must be ready by 2028, it is "unlikely" that the hotel and casino will open by that time, suggesting that only the retail and entertainment areas might be completed.
Bally's plans to proceed with its ambitious Bronx project, having secured a downstate New York casino license last winter. The planned integrated resort at a golf course in the Bronx carries a $4 billion estimated cost, comparable to the combined investment in projects for Chicago and Las Vegas.
While detailed information about Bally's Bronx project remains largely redacted, it is publicly known that construction is expected to commence "approximately eight to nine months" after receiving licensure. Since licenses were awarded in December, this timeline suggests construction could begin late summer. Bally's expressed a strong desire to start as soon as this fall in New York.
Bally's has actively engaged in financial maneuvers in recent years, acquiring Intralot, Evoke, and a majority stake in Star Entertainment. By the end of the first quarter, the company reported $559 million in cash against long-term net debt of over $4.3 billion, along with $2.2 billion in lease liabilities. Although its stock price increased about 50% over the past year due to asset accumulation, shares have dipped 15% in the past six months.
