Raising the stakes on the standoff with the city over the advent of video gambling terminals, Bally’s Chicago is pausing construction on nearly all non-gaming amenities at its $1.7 billion casino complex going up in River West.
The reset notice, issued Saturday to the Chicago Community Builders Collective, a general contracting partnership overseeing the project, essentially puts everything from a towering hotel and events center to a number of planned restaurants on hold.
The decision also puts 1,500 union workers on hiatus, as much of the construction grounds to a halt, Bally’s said. The casino itself remains on target for an early 2027 opening, but the larger entertainment complex is in temporary limbo, pending resolution of the VGT dispute.
“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. “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.”
Bally’s contends the legalization of video gambling terminals in Chicago as part of this year’s budget violates the 2022 host agreement between the Rhode Island-based company and the city to build the permanent casino and amenities. It is also a point of contention between Mayor Brandon Johnson and the aldermen who included the terminals in the budget over his objection.
Illinois passed the Video Gaming Act in 2009 and the machines began showing up in restaurants, truck stops and bars in 2012. There are now nearly 50,000 VGTs at more than 8,700 locations across the state – the most in the country, according to the Illinois Gaming Board.
Some of that growth has come at the expense of casinos. This year, the VGTs have generated more net income and about twice as much in taxes as the state’s 17 casinos through July, according to Gaming Board data.
Chicago approved video gambling last fall and aldermen included revenue from the terminals in the 2026 budget, hoping to plug a $6.8 million funding gap. There were 268 pending Chicago VGT location applications at the Illinois Gaming Board as of last month, but none had been approved to begin operations.
Bally’s Chicago would like to see it stay that way, retaining law firm RKF Global to navigate the VGT dispute with the city. In an unusual twist, RKF Global employs former Mayor Lori Lightfoot, whose administration chose Bally’s to build Chicago’s first casino.
