Bally's Corp is facing significant challenges this summer as it navigates pressures related to its Chicago and Las Vegas projects, in addition to timelines for its New York resort. In Chicago, Bally's secured an extension for its temporary license just before the state legislature adjourned on June 1, providing relief as construction on its $1.8 billion permanent casino progresses. However, the city is grappling with a new challenge: the introduction of video gaming terminals (VGTs) within its boundaries.
Last year, Chicago Mayor Brandon Johnson encountered a difficult budget process, ultimately resulting in the city council approving a budget that lifted the city's ban on VGTs. This budget anticipates $6.8 million in VGT licensing revenue, based on the expectation that around 80% of the roughly 3,300 eligible liquor license holders would apply. Reports indicate that nearly 300 locations have already sought approval to offer these machines.
Johnson and his administration continue to debate the issue, with a recent committee meeting ending without resolution amid rising tensions. During discussions, Bally's proposed establishing slot lounges in both O'Hare and Midway airports to help offset the $6.8 million expected from VGT licenses. Christopher Jewett, Bally's senior vice president of corporate development, claimed, "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."
Bally's has expressed concern that failing to reinstate the VGT ban could have serious financial implications, predicting that city-wide VGTs could potentially lead to nearly $75 million in lost annual revenue and around 1,000 job reductions at its temporary and permanent casinos. To secure its Chicago license, Bally's entered into a community agreement that includes a $4 million annual payment to the city, and legalizing VGTs could invalidate several aspects of that agreement, possibly resulting in legal action.
Despite the risks posed by VGTs, their revenue potential is substantial. The Illinois Gaming Board reports that as of 2026, casinos in Illinois have generated roughly $889.5 million in total adjusted gross receipts, yielding $53.6 million in local taxes. In comparison, VGTs have brought in $1.4 billion in net terminal income and $68.5 million in local taxes, with more than 1,100 municipalities across Illinois having adopted VGTs. Previously, Chicago had been one of the few areas resisting their implementation.
"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," Jewett remarked to the council.
In Las Vegas, Bally's is under pressure with its $1.2 billion mixed-use development along the Strip, especially as construction ramps up on the planned MLB stadium for the Athletics, set to open in spring 2028. Although the stadium's timeline appears stable, there are concerns regarding Bally's own development pace. Reports suggest that if Bally's cannot meet deadlines, the team might pursue building its necessary infrastructure, which could lead to additional costs of around $100 million.
Steve Hill, president and CEO of the Las Vegas Convention and Visitors Authority, expressed concern that Bally's "doesn't have the financing" to complete the project as planned. The LVCVA has requested a comprehensive plan from Bally's by August. According to Bally's, meeting the 2028 deadline is unlikely for the hotel and casino components; instead, they expect that only the retail and entertainment area will be ready by then.
Bally's CFO, Mira Mircheva, and attorney Dan Reaser clarified to the Nevada Gaming Commission that the 2028 deadline pertains solely to the stadium's opening, and it remains uncertain when the rest of the project will be completed.
Another major project on the horizon is Bally's Bronx, which received a downstate New York casino license last winter. The proposed integrated resort at a golf course they own in the Bronx will cost around $4 billion, nearly the same as the total for their Chicago and Las Vegas projects combined. While many application details are redacted, one publicly available timeline indicates that construction may begin approximately eight to nine months after licensure, which was awarded in December. Therefore, work could start around August or September. Bally's expressed commitment to moving quickly on the New York project, aiming to begin construction this fall.
In recent years, Bally's has actively adjusted its financial strategies, acquiring multiple companies including Intralot, Evoke, and a majority stake in Star Entertainment since early 2025. The company reported $559 million in cash at the end of the first quarter, against over $4.3 billion in long-term net debt, plus an additional $2.2 billion in lease liabilities. Although its stock has increased by about 50% in the past year, it has seen a 15% drop over the last six months as the company continues to expand its asset portfolio.
