Bally’s Chicago Slows Casino Resort Construction Over Video Gambling Dispute

_{The future site of Bally's Chicago will eventually be completed, but construction has been halted for the time being. (Photo: Sipa USA / Alamy Live News)}

Bally’s Chicago announced Saturday that it was halting construction on many aspects of its River West casino complex, the latest move in the ongoing battle over whether video gambling terminals (VGTs) will be allowed to proliferate in the city.

The announcement, issued in a reset notice, was addressed to the Chicago Community Builders Collective, a contracting partnership overseeing the $1.7 billion construction project.

Bally’s, City Council at Odds Over VGTs

While construction on the Illinois casino itself will continue as normal, Bally’s Chicago says that nearly all work on other non-gaming amenities has been paused.

“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,” Bally’s said in a statement. “The potential for an uncontrolled proliferation of video gambling terminals 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.”

The Chicago City Council approved VGTs at bars, restaurants, and bowling alleys as a part of its 2026 budget. However, Mayor Brandon Johnson publicly opposed the proposal, asking the City Council Committee on Workforce Development to consider an ordinance disallowing VGTs in June.

That led to a fiery meeting later that month where aldermen clashed over the issue and what the consequences of legalizing – or barring – VGTs might be for the city. That meeting ultimately ended prematurely when the majority of aldermen voted to adjourn.

At issue is the HCA signed by the city of Chicago and Bally’s. According to Bally’s, they made their commitment to build the casino complex based on the city’s long-standing policy of prohibiting VGTs.

“Had we known that within just a few years this body would reverse course and allow an alternative form of gaming that breaches the agreement, we would never agree to the numerous commitments, all of which we’ve held up,” said Christopher Jewett, Bally’s senior vice president for corporate development.

Bally’s Commits to Completing Construction ... Eventually

Opponents of VGTs fear that Bally’s could withhold its annual $4 million payment to the city – the next of which is due in September – if VGTs are allowed to remain in the state. And with the completed complex expected to generate about $200 million in annual tax revenue, they argue that VGTs will simply reduce casino revenue without providing anything substantial to Chicago.

Those in favor of VGTs say they will benefit local businesses while generating revenue through licensing fees and ongoing taxes – something the city can use, as the temporary Bally’s casino at Medinah Temple is underperforming its revenue projections.

Bally’s isn’t threatening to leave construction on the River West site incomplete. However, it has now said it will slow the launch of an adjoining hotel and other amenities – a decision it will reverse if the city reverses its decision on VGTs, according to sources cited by the Chicago Tribune.

According to a statement by Bally’s, the construction pause will impact “many of the 1,500 union tradespeople” who are working on the project, something the company says it doesn’t take lightly.

On Tuesday, Mayor Johnson addressed the issue, saying he’ll talk to both sides in order to find a solution.

“I’m prepared and willing to work with City Council members along with Bally’s to make sure that this development and the revenue from this development, that is designed to help support and provide some relief from longstanding responsibilities in terms of our pension, that those resources are not threatened,” Johnson told reporters.

As of yet, the city has not issued any licenses for VGTs, though the Illinois Gaming Board has approved dozens of Chicago businesses for the machines. According to Bally’s, the new casino remains on pace to open in early 2027.