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Bally’s has slowed construction on most non-gaming amenities at its $1.7 billion permanent Chicago casino complex, escalating a dispute with the city over the potential expansion of video gambling terminals (VGT).
The construction reset affects the planned 500-room hotel, events center, restaurants, food hall and other entertainment facilities at the River West development, while the casino itself remains on track to open in early 2027, Bally’s said.
About 1,500 union construction workers have been placed on hiatus as a result of the slowdown.
“Bally’s issued a notification to the Chicago Community Builders Collective (CCBC) that it is resetting the pace of construction of elements of Bally’s Chicago permanent casino,” the company said in a statement.
Bally’s argues that Chicago’s move to allow video gambling terminals, or VGTs, breaches the 2022 Host Community Agreement between the company and the city, which Bally’s says included a commitment not to expand gaming in the host community.
The move “creates uncertainty that could be harmful for Bally’s Chicago prospects,” the company said.
Chicago approved video gambling last fall, and aldermen included revenue from the terminals in the city’s 2026 budget to help address a $6.8 million funding gap. There were 268 pending applications for Chicago VGT locations at the Illinois Gaming Board as of last month, although none had been approved to begin operations.
Illinois has nearly 50,000 VGTs operating at more than 8,700 locations, according to Illinois Gaming Board data. The terminals have increasingly competed with casinos for gambling revenue in the state.
Bally’s is considering withholding an annual $4 million payment to the city due in September until the VGT dispute is resolved, according to local media reports.
The stakes extend beyond the payment. Chicago projects the permanent casino complex will generate about $200 million in annual local tax revenue.
Bally’s won the right to develop the permanent casino in 2022 after a competition overseen by then-Mayor Lori Lightfoot. The planned complex includes a 3,000-seat theater, 10 restaurants and 4,000 gaming positions.
Construction began in August 2024, and the 34-story hotel has already reached its full structural height. Bally’s has also been operating a temporary casino at the Medinah Temple in Chicago’s River North neighborhood since 2023.
Bally's recently reached its full structural height
The company intends to fulfill its obligations under the Host Community Agreement, sources said, while slowing work on the hotel launch and other amenities until the VGT issue is resolved.
If the city backs away from the video gambling rollout, Bally’s could resume construction at an accelerated pace, according to sources.
“We do not take this lightly because of the potential impact on many of the 1,500 union tradespeople who have been working hard to build Bally’s Chicago,” Bally’s said. “We will continue to assess our options, which we hope will include more productive discussions with the Mayor’s Office and City Council.”
Bally’s has retained law firm RKF Global to help navigate the dispute. Lightfoot, whose administration selected Bally’s to develop Chicago’s first casino, is employed by the firm.