Bally’s Corporation, responsible for building Chicago’s inaugural full-scale casino, is facing potential delays in the project’s completion. The $1.8 billion development is under pressure to meet its scheduled opening date of September 9, 2026. As part of a Host Community Agreement (HCA) with the city, Bally’s initiated operations at a temporary casino located in the Medinah Temple in River North on September 9, 2023. This arrangement allowed the company to begin generating revenue and taxes while the permanent establishment was being constructed. However, concerns are mounting regarding whether the company can meet the regulatory requirements set forth in their agreement to avoid penalties or forced closures.
The HCA includes a stipulation that Bally’s cannot operate the temporary facility for more than 36 months without approval from the City of Chicago and the Illinois Gaming Board (IGB). If the permanent casino is not operational by the three-year mark, Bally’s would need an extension to continue operations at the temporary site. While Bally’s has not confirmed its inability to meet the September 2026 deadline, there are discussions around HB 4437, a legislative bill that could extend the temporary license by up to 18 months. This bill, introduced by Representative Kam Buckner, is currently in the House Rules Committee, with no meetings scheduled before the legislative session adjourns on May 31.
The Illinois Gaming Board is aware of HB 4437 but cannot extend the timeline for Bally’s without legislative changes. The temporary casino’s operational status is further complicated by various construction setbacks, including issues with unapproved contractors and adjustments to the casino’s design to comply with city infrastructure standards.
Furthermore, Gaming and Leisure Properties, Inc. (GLPI), which is financially invested in the Chicago casino project, seems unconcerned about potential delays. GLPI has invested $940 million in the construction and acquired the real estate for $250 million, leasing it back to Bally’s. Their statement suggests no immediate financial impact if the temporary facility’s license is extended.
The local market dynamics are also shifting with the Chicago City Council’s decision to legalize video gaming terminals (VGTs) within city limits. This move could pose competitive challenges for Bally’s, as VGTs have shown to be significant revenue generators in other parts of Illinois. The increased presence of VGTs could impact Bally’s anticipated revenues, potentially compromising agreements and projections made in the HCA, such as a $4 million annual payment to the city.
As Bally’s navigates these challenges, the company must address construction delays, secure possible legislative support, and contend with evolving market conditions. The next few months will be crucial in determining whether Bally’s can meet its regulatory obligations and continue operating the temporary casino beyond the September 2026 deadline. The outcome will depend on legislative actions and the resolution of construction and market issues.
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