Warning: Undefined array key "post_type_share_twitter_account" in /var/www/vhosts/casinonewsblogger.com/public_html/wp-content/themes/cryptocurrency/vslmd/share/share.php on line 24
Bally’s Chicago has slowed construction on major portions of its permanent casino and entertainment development in River West as tensions continue with city officials over the expansion of video gambling terminals (VGTs) across Chicago.
The company confirmed it has instructed the Chicago Community Builders Collective, the partnership overseeing construction of the $1.7 billion project, to reduce the pace of work on several components of the development. While the casino itself remains on schedule to open in early 2027, much of the broader entertainment complex has been placed on hold until the dispute is resolved.
The move affects a wide range of planned amenities, including the project’s hotel, event facilities and multiple dining venues. Bally’s said approximately 1,500 union construction workers will be impacted by 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 cited by Chicago Tribune. “The potential for an uncontrolled proliferation of video gambling terminals (VGTs) is in breach of the City’s commitment not to expand gaming in the Host Community Agreement (HCA) and creates uncertainty that could be harmful for Bally’s Chicago prospects.”
Video Gambling Expansion at Center of Conflict
At the heart of the disagreement is Chicago’s decision to move forward with video gambling terminals as part of its budget planning. Bally’s argues that the introduction of VGTs conflicts with commitments made when the company secured the right to build the city’s first casino.
The company maintains that the legalization of video gambling terminals under Chicago’s 2026 budget framework violates provisions contained in the 2022 Host Community Agreement. According to reports, Bally’s wants city leaders to halt the rollout of VGTs outside casino properties.
Mayor Brandon Johnson opposed including video gambling revenue in the city budget, but aldermen ultimately incorporated projected proceeds from the machines to help address a budget shortfall. Chicago officials anticipated approximately $6.8 million in revenue from VGT operations.
Although Chicago approved video gambling last year, the rollout remains incomplete. Illinois Gaming Board records showed 268 pending VGT location applications in Chicago as of last month, though none had yet received approval to begin operating.
Video gambling has become a significant part of Illinois’ gaming market since the state enacted the Video Gaming Act in 2009. Machines first appeared in bars, restaurants and truck stops in 2012. Today, nearly 50,000 terminals operate at more than 8,700 locations throughout Illinois, making it the largest VGT market in the United States.
Gaming Board figures indicate VGTs have generated greater net income than Illinois casinos so far this year and produced roughly twice the tax revenue generated by the state’s 17 casinos through July.
Construction Timeline Remains Intact for Casino Opening
Despite the broader construction slowdown, Bally’s has reiterated that it intends to fulfill its obligations under the Host Community Agreement and complete the permanent casino.
“…We do not take this lightly because of the potential impact on many of the 1,500 union trades people who have been working hard to build Bally’s Chicago…” the company stated.
Construction on the River West site began in August 2024 at the former Chicago Tribune Publishing Center property near Chicago Avenue and Halsted Street. Earlier this year, the project reached a major construction milestone when workers installed the final steel beam of the structure.
The permanent development was selected in May 2022 following a competitive bidding process overseen by former Mayor Lori Lightfoot‘s administration. Bally’s proposal beat four competing bids and included plans for a large-scale entertainment destination featuring a 500-room hotel, a 3,000-seat theater, 10 restaurants and 4,000 gaming positions.
The 34-story hotel structure has already reached its full height along the Chicago River. However, Bally’s is now slowing progress on the hotel’s completion as well as work on restaurants, a food hall and an events center.
Company representatives have indicated construction could accelerate again if the city reconsiders its approach to video gambling terminals.
Financial Stakes Extend Beyond Construction Delays
The dispute carries significant financial implications for both Bally’s and the city. According to reports, Bally’s is considering withholding a scheduled $4 million annual payment due to Chicago in September while negotiations continue. Sources familiar with the matter indicated the company is prepared to delay the payment until the VGT issue is resolved.
The larger concern for city officials centers on the expected long-term value of the casino development. Chicago has projected the permanent casino complex will eventually generate approximately $200 million in annual local tax revenue, funds that are intended to support police and firefighter pension obligations.
Bally’s currently operates a temporary casino inside the historic Medinah Temple building in River North while construction of the permanent facility continues. Earlier this year, state lawmakers introduced legislation that would extend the company’s temporary operating authorization beyond its current September 2026 expiration date.
In January, Bally’s expressed support for the proposal, arguing that an extension would provide stability as construction progresses. At the time, Christopher Jewett, Senior Vice President of Corporate Development at Bally’s Corporation, stated:
“Bally’s Chicago acknowledges the introduction of legislation authorizing an extension of gaming operations at its temporary Medinah Temple location for an additional 6 months, with an option for two additional three-month extensions while construction of the permanent Bally’s Chicago facility is completed. This action provides operational certainty and allows Bally’s Chicago to remain fully compliant with its Host Community Agreement with the City of Chicago, ensuring uninterrupted service for guests, continued employment for team members, and ongoing economic contributions to the City. We appreciate the partnership with City leaders and the General Assembly.”
For now, Bally’s says it will continue reviewing its options while seeking further discussions with the mayor’s office and members of the Chicago City Council regarding the future of video gambling in the city.