Bally’s Slows Chicago Casino Build-Out as VGT Fight with City Intensifies
2026-08-10
Bally’s has slowed construction on non-casino elements of its $1.7 billion Chicago development, idling 1,500 workers, as it presses the city over video gambling terminals it says violate its Host Community Agreement.
Bally’s has eased off construction of most non-gaming facilities at its $1.7 billion permanent casino in Chicago amid an escalating clash with the city over video gambling terminals. The casino itself remains on schedule for an early 2027 opening, according to the company.
The scaled-back work covers the planned 500-room hotel, events center, restaurants, food hall and other entertainment components at the River West complex. As a result, roughly 1,500 union construction workers have been put on hiatus.
Bally’s argues that Chicago’s move to allow video gambling terminals breaches the 2022 Host Community Agreement, which the company says included a commitment not to expand gaming in the host community. The expansion, it says, “creates uncertainty that could be harmful for Bally’s Chicago prospects.”
Chicago lawmakers approved video gambling last fall and factored terminal revenue into the city’s 2026 budget to cover a $6.8 million funding gap. At last count, 268 applications for VGT locations in Chicago were pending with the Illinois Gaming Board, with none yet cleared to operate. Statewide, Illinois has nearly 50,000 VGTs spread across more than 8,700 locations, and those machines have become an increasingly potent competitor for casino gambling dollars.
Media reports say Bally’s is weighing whether to withhold a $4 million payment due to the city in September until the dispute is resolved. The broader financial stakes are sizable: Chicago projects the permanent casino complex will deliver roughly $200 million in annual local tax revenue.
The company won the right to build the casino in 2022, following a competition led by then-Mayor Lori Lightfoot. The planned complex includes a 3,000-seat theater, 10 restaurants and 4,000 gaming positions. Construction started in August 2024, and the 34-story hotel has already reached its full structural height. Bally’s has also been running a temporary casino at Medinah Temple in River North since 2023.
Bally’s says it remains committed to its obligations under the Host Community Agreement, but it will pace the hotel and amenity work until the VGT matter is settled. If the city pulls back from the terminal rollout, construction could accelerate again. The company acknowledged the disruption to the 1,500 tradespeople and said it hopes for more productive discussions with the Mayor’s Office and City Council. Bally’s has also retained the law firm RKF Global, which employs Lightfoot.