Bally's Corp is facing significant pressure this summer as it juggles its projects in Chicago and Las Vegas while also preparing for its upcoming resort in New York. In Chicago, Bally's secured a crucial extension to its temporary license before the state legislature adjourned on June 1, providing some relief as it works on a $1.8 billion permanent casino. However, the company now faces competition from video gaming terminals (VGTs) allowed within city limits. Chicago Mayor Brandon Johnson struggled with the city budget last year, ultimately leading the city council to lift the VGT ban. This new budget estimates $6.8 million in VGT licensing revenue, relying on about 80% of the 3,300 eligible liquor licensees to apply. According to the Chicago Sun-Times, nearly 300 venues have already pursued this opportunity.
Disputes over VGTs continue, with a recent city council committee meeting ending without resolution amid rising tensions. During that meeting, Bally's proposed adding slot lounges at O'Hare and Midway airports, which the company claims could generate enough revenue to offset the VGT licensing 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.
Bally's warned of dire financial consequences if the VGT ban persists, estimating that citywide VGTs could lead to a loss of nearly $75 million in annual revenue and cut approximately 1,000 jobs across its casinos. The company signed a host community agreement for its Chicago license that includes a $4 million yearly payment to the city; legalization of VGTs may void this agreement and could lead to litigation.
The revenue potential from VGTs is substantial, with Illinois casinos reporting $889.5 million in total adjusted gross receipts and $53.6 million in local taxes so far in 2026. In contrast, VGTs have generated $1.4 billion in net terminal income and $68.5 million in local taxes, with over 1,100 municipalities embracing VGTs. "Had we known that this body would reverse course and allow an alternative form of gambling that breaches the agreement, we would never agree to the numerous commitments," Jewett remarked during the council meeting.
Meanwhile, in Las Vegas, Bally's is under scrutiny regarding its $1.2 billion mixed-use development on the Strip, adjacent to the new MLB stadium for the Athletics, which is projected to open in spring 2028. While the stadium's timeline appears stable, doubts linger about the future of Bally's project. Reports suggest the team might build some of its own infrastructure if Bally's cannot keep pace, potentially increasing construction costs by $100 million.
Steve Hill, president and CEO of the Las Vegas Convention and Visitors Authority, indicated that Bally's lacks the necessary financing for the project and has requested a detailed future plan by August. Bally's stated it is "unlikely" to have the casino operational by 2028 and that only the retail and entertainment sections might be ready in that timeframe. "The April deadline of 2028 is for the stadium and for the baseball season to proceed," said attorney Dan Reaser, clarifying that the retail district is prioritized over hotel and casino components.
As these projects intensify, Bally's also has its eye on a major venture in New York. Last winter, the company secured a downstate New York casino license, intending to develop a $4 billion integrated resort at a golf course it owns in the Bronx. They plan to start construction approximately eight to nine months after receiving their license, which was awarded in December, targeting a start around August or September. Bally's confirmed it aims to commence work swiftly this fall.
Bally's has been notably active and innovative in funding its endeavors, having acquired Intralot, Evoke, and a majority interest in Star Entertainment since early 2025. The company reported having $559 million in cash at the end of Q1, despite carrying over $4.3 billion in long-term net debt and $2.2 billion in lease liabilities. Its stock has increased by about 50% over the past year, although it has dropped 15% in the last six months as the company accumulates assets.
