City Council Cries Foul on Bally’s Chicago Construction Slowdown

_{Construction of Bally's Casino in Chicago may have been halted due to a cash flow issue. (Photo: John J. Kim / Chicago Tribune via ZUMA Press Wire)}

The majority of the Chicago City Council signed on to a letter Wednesday demanding that Bally’s resume construction on the entirety of its Bally’s Chicago complex, while also calling for a hearing on the company’s decision to slow down the project.

Bally's announced a pause on non-gaming elements of the River West complex on Sunday, blaming the move on a push by the City Council to approve video gaming terminals (VGTs) in the city.

Bally’s Says VGTs Threaten Casino Revenue

According to Bally’s, allowing VGTs in bars, restaurants, and bowling alleys would breach the Host Community Agreement signed by Chicago and Bally’s when the company agreed to develop the casino resort.

But the City Council passed a 2026 budget that included $6.8 million in expected revenue from VGT licensing cities and taxes. While no VGTs have been licensed in the city yet, Bally’s has threatened to sue the city and withhold annual $4 million payments over the machines, saying it has a monopoly on slots and similar games within city limits, and any video gambling outside of what Bally’s offers would make its contract with the city null and void.

So while construction continues as normal on the casino, which is expected to open in early 2027, Bally’s announced that it was pausing work on a hotel and other elements – though it committed to eventually completing the entire complex.

Alders Suspect Cash Flow Issues Behind Pause

But 28 alderpeople – all members of the coalition that signed the 2026 budget, which was an alternative to the one proposed by Mayor Brandon Johnson – signed on to Wednesday’s letter, saying the VGT issue was simply an excuse, and that Bally’s is violating the Host Community Agreement by pausing construction.

“Many of us suspect that this is really a cash flow issue for Bally’s, and they’re trying to turn lemons into lemonade by blaming VGT as the reason they’re slowing down construction,” Ald. Brendan Reilly (42nd Ward) told the Chicago Sun-Times, noting that the city has yet to approve a single VGT license. “They’ve told their own investors that they are heavily leveraged and have over $5 billion in debt, and that encumbrance could have a negative impact on their future operations.”

“We need to get to the bottom of what is really going on,” added Ald. Anthony Beale (9th Ward). “If they cannot fulfill their obligation to the city, we need to be looking for another operator.”

In the letter, the City Council demands that Mayor Johnson enforce agreements between the city and Bally’s, and threatens to hold public hearings and potentially sue the operator if Johnson cannot – or will not – do so.

Johnson has been a staunch opponent of VGT licensing in the city, and has attempted to get the decision repealed, leading to a tense committee meeting in late June. The mayor has yet to comment on the City Council’s letter.

Bally’s contends that changing the timeline of construction doesn’t mean it isn’t delivering what it promised to the city.

“We have held up, and will hold up, our end of the bargain,” Bally’s said in a statement. “We look forward to stating our case that VGTs will not benefit the City the way it has been represented, especially if their rollout will cause material detriment to our business.”

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