Bally's Corp has had a challenging summer as it contends with mounting pressures on its projects in Chicago and Las Vegas, while also preparing for its New York resort.
In Chicago, Bally's received a significant reprieve just before the state legislature adjourned on June 1, securing an extension for its temporary license, which is crucial as it continues work on its $1.8 billion permanent casino. However, a new concern has surfaced with the introduction of video gaming terminals (VGTs) within city limits.
Last year, Chicago Mayor Brandon Johnson faced a difficult budget process that ultimately resulted in the city council approving a budget lifting the ban on VGTs. The revised budget projected $6.8 million in revenue from VGT licenses, assuming that about 80% of the 3,300 eligible liquor licensees would seek to include the machines. Reports indicate that nearly 300 venues have already applied for this.
Amid ongoing debates, a heated city council committee meeting took place regarding the issue, ending without a solution. During the discussions, Bally's proposed the installation of slot lounges at O'Hare and Midway airports, seeking to cover the VGT licensing revenue that was allocated in the budget.
"We believe one lounge can generate approximately $5 million in actual gaming and admission taxes, which go directly to the city," stated Christopher Jewett, Bally's senior vice president of corporate development, according to the Chicago Sun-Times. "This alone can replace the revenue in question."
Bally's has raised alarms about the potential financial consequences if the VGT ban is not reimposed, estimating that city-wide VGTs could lead to a $75 million annual revenue decrease and result in the loss of approximately 1,000 jobs at its temporary and permanent casinos. To secure the lone Chicago casino license, Bally's agreed to various stipulations, including a yearly payment of $4 million to the city, and the legalization of VGTs may render many of these commitments void, possibly inciting legal challenges.
Despite the challenges, the revenue potential from Chicago VGTs is substantial. In 2026, Illinois casinos reportedly generated $889.5 million in adjusted gross receipts and $53.6 million in local taxes, compared to VGTs, which produced $1.4 billion in net terminal income and $68.5 million in local taxes. Over 1,100 municipalities in Illinois have adopted VGTs, with Chicago being a notable holdout until this budget cycle.
Jewett expressed frustration regarding the situation, remarking, "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."
Currently, only two U.S. airports—both in Nevada—house slot machines: Harry Reid International Airport in Las Vegas, which features over 1,000 machines generating nearly $40 million annually, and Reno-Tahoe International Airport, which sees about $1 million in revenue each year.
In Las Vegas, Bally's faces scrutiny over its $1.2 billion mixed-use development on the Strip, especially as construction progresses on a neighboring MLB stadium for the Athletics, set to open in spring 2028. While the ballpark's timeline appears stable, questions loom regarding Bally's development of the shared site. Speculation suggests that if Bally's cannot accelerate its project, the Athletics may proceed to build their own infrastructure, potentially increasing costs by $100 million.
Steve Hill, president and CEO of the Las Vegas Convention and Visitors Authority, remarked that Bally's "doesn’t have the financing" necessary to complete the project. The LVCVA has urged Bally's to outline a plan by August. Bally's officials, including CFO Mira Mircheva and attorney Dan Reaser, indicated to the Nevada Gaming Commission that the 2028 deadline pertains only to the stadium, not the hotel and casino, which is likely to see limited completion within that timeframe.
“To make the record clear, the April deadline of 2028 is for the stadium to open and for the baseball season to proceed," Reaser clarified. "The April 2028 timeline is for the retail district, parking garage, utilities, and plaza, but not the towers that come at a later date."
As these issues intensify, Bally's is also pressing ahead with an ambitious project in the Bronx, New York, where it won a coveted downstate casino license last winter. The planned integrated resort at a golf course Bally's owns is projected to cost approximately $4 billion, equal to the combined investment in Chicago and Las Vegas.
Although much of the application material for Bally's Bronx project is confidential, a publicly available timeline indicates that construction will commence "approximately eight to nine months" following licensure awarded in December 2022. Bally's has expressed a strong desire to kick off this project by fall 2023.
Bally's has been notably active in the gaming industry, acquiring Intralot, Evoke, and a majority stake in Star Entertainment since early 2025. The company closed the first quarter with $559 million in cash, long-term net debt exceeding $4.3 billion, and $2.2 billion in lease liabilities. While its stock rose nearly 50% over the past year, shares have since fallen 15% in the last six months.
