Bally’s Corporation has decided to pause construction on non-gaming elements of its $1.7 billion casino project in Chicago, citing concerns over the city’s recent legalization of video gambling terminals (VGTs). The announcement was made over the past weekend, affecting components such as a hotel tower, event center, and several restaurants. This decision is significant for the long-term plans of the casino, which is slated to open by early 2027, as it raises questions about the economic and regulatory implications for Chicago’s casino market.
The casino’s Host Community Agreement with the city included several commitments from Bally’s, which the company believes are threatened by the rapid expansion of VGTs within city limits. Among these commitments is an important $4 million annual payment to the city. Bally’s expressed concerns about the impact of VGT proliferation on the 1,500 union tradespeople involved in the construction project and indicated a desire for further discussions with the mayor’s office and city council.
This halt in construction marks the fourth significant interruption for Bally’s Chicago, which holds the city’s only casino license. Previous delays were attributed to issues such as falling debris, unapproved contractors, and potential interference with city water lines, necessitating major design changes.
The legalization of VGTs played a contentious role in last year’s budget process under Mayor Brandon Johnson. Despite his initial budget proposal, an alternative $16.6 billion budget was passed by the city council, incorporating over $6 million in VGT licensing revenue. This move could result in more than 2,500 licenses for local businesses. VGTs have been a lucrative gaming vertical in Illinois since their legalization in 2009, garnering $1.1 billion in tax revenue in 2025, significantly outpacing the $430 million from the state’s 17 casinos. Chicago was one of the last major municipalities in Illinois to allow VGTs.
As VGTs begin to proliferate, Bally’s has been vocal in its opposition, citing potential revenue losses. The company has explored other options, such as installing slot machines at Midway and O’Hare airports, although this has not been pursued. Bally’s estimates that the introduction of VGTs could reduce its revenue by $74 million and result in the loss of hundreds of jobs.
Bally’s has taken steps to protect its investment, including hiring the law firm Fahner Rosenberg PLLC to consider potential legal action against the city. Former Chicago mayor Lori Lightfoot, who previously selected Bally’s as the sole licensee in 2022, is a partner at the firm. Bally’s described this legal move as part of its strategy to safeguard its investment in Chicago.
In parallel with the VGT issue, Bally’s has managed to address another regulatory hurdle. Earlier this year, the company faced a deadline to open its permanent casino by September 9, as its temporary license was set to expire. Failure to meet this deadline would have resulted in the closure of Bally’s temporary casino at Medinah Temple. However, an extension was secured when the language of the proposed extension bill (HB4437) was incorporated into the state’s comprehensive omnibus revenue bill (SB3019), thus extending the deadline to September 9, 2027.
With ongoing challenges and the VGT-related construction pause, it remains uncertain whether Bally’s will be able to complete all elements of its casino project by the new deadline. The company continues to navigate the evolving regulatory landscape in Chicago, and its next steps will likely involve seeking further dialogue with city officials and considering legal avenues to address the impact of VGTs on its operations. The focus will now be on how these developments influence the timeline for the opening of the permanent casino and the overall response from the market and regulatory bodies.
Topics: Illinois · Partnerships · Licensing · Land-Based Casinos · Gambling Taxes · Financial Results
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