Bally’s Slows Chicago Construction, Prepares for Fight With City Over VGTs
Dylan La Pierre via Unsplash
The long and contentious road to Chicago’s first land-based casino took another sharp turn this week, as Bally’s slowed construction at its permanent River West resort and indicated that it’s prepared to fight the city over a plan to introduce video gaming terminals into local bars and restaurants.
On Monday morning, ABC7 crews captured footage of dozens of union tradespeople filing out of the $1.7 billion construction site after the company paused portions of the development.
This marked an escalation in a dispute that’s been simmering for months. The open confrontation threatens jobs, a multimillion-dollar community payment, and the timeline for a project the city is counting on to help shore up its budget and pension shortfalls.
At the center of the fight are video gaming terminals (VGTs), which operate as video poker and slots-style machines. Illinois has long permitted them in bars, restaurants, and truck stops across the state, but Chicago has not allowed them inside the city.
Bally’s Fears That VGTs Will Hurt Revenue Projections
Bally’s notified the Chicago Community Builders Collective (CCBC), the group overseeing construction, to say that it was “resetting the pace of construction” for aspects of the permanent casino.
The company’s grievance primarily concerns the Host Community Agreement (HCA), which governs its relationship with the city. Bally’s contends that what it calls the “uncontrolled proliferation” of VGTs breaches the city’s commitment not to expand other gaming. The company says that allowing VGTs near the casino “could be harmful for Bally’s Chicago prospects.”
The origins of the standoff date back to last year’s budget negotiations. At that time, city leaders authorized VGTs within the city to create a new revenue stream. Bally’s is now pushing back hard to try to convince the city to reconsider before operators switch those machines on.
The casino fears that the terminals would undercut the revenue projections that justified the project in the first place. The company pointed to patterns seen elsewhere in Illinois as a warning of what widespread VGTs could do to the casino’s bottom line.
Early-2027 Opening Date Still on Track
The slowdown doesn’t appear to amount to a complete stop, as crews continued some construction on Monday morning. Bally’s is reevaluating work on the hotel, restaurants, and music venue, but not the gaming floor.
It wants to assess whether the additional elements still make financial sense if VGT expansion ends up hurting demand. Bally’s also insists that it still expects to meet the early 2027 opening date.
The spokesperson added that it hopes to have “more productive discussions with the Mayor’s Office and City Council.” They also said they didn’t take the slowdown lightly due to the “potential impact on many of the 1,500 union tradespeople working on the project.”
Bally’s Has Assembled a Legal Team for Possible Action
Bally’s decision to pause aspects of the development has drawn sharp criticism from some in City Hall. The 15th Ward Alderman Ray Lopez, who has long been a vocal critic of Bally’s, said that the company is “trying to use our workers as leverage against us, the city of Chicago, who are trying to manage budget shortfalls and missed expectations.”
There’s also direct money at stake, as Bally’s could withhold an annual $4 million community benefit payment if the city goes ahead with allowing VGTs.
Bally’s reportedly has been assembling a legal team so it will be ready for a possible lawsuit against the city. It hired RKF Global in June, a law firm associated with former Chicago Mayor Lori Lightfoot.
City Hall Split Over the Prospect of VGT Cannibalization
The dispute has split Chicago’s aldermen, with Bally’s critics saying that the company is exaggerating the threat that VGTs pose to its business. They believe that the two customer bases don’t overlap and that VGTs would provide a much-needed revenue lifeline for struggling bars and restaurants.
Ninth Ward Alderman Anthony Beale also noted how about 7,000 illegal sweepstakes machines operate in the city, which Bally’s hasn’t mentioned at all, despite some of the alleged machines being “right across the street from where Bally’s is building their new casino.”
However, not everyone dismisses the company’s fears. Alderman Walter “Red” Burnett’s 27th Ward includes the Bally’s site, and he said that the concerns line up with what other parts of the state have experienced. He pointed toward a new independent study that shows a 30% reduction in casino revenues in municipalities that issue VGTs and also have casinos.
No Comment From the Mayor’s Office Despite Previous Opposition
VGTs generate significant statewide revenue, with Illinois Gaming Board figures showing these terminals produced almost $514 million in tax revenue for the state in the first six months of 2026, nearly three times the $177 million casinos produced during the same period.
The state has already approved more than 200 VGT licenses in Chicago, but the city hasn’t yet issued any permits, so operators have not activated any of them.
The city’s reliance on the casino to shore up its pension funding is also adding to tensions. However, Bally’s temporary casino in River North has so far fallen short of projections, which makes the permanent casino’s success even more important to City Hall.
Mayor Brandon Johnson has strongly opposed VGTs on the belief that they will undercut the city’s first casino. However, the City Council overrode him and legalized VGTs as part of the 2026 budget. The mayor’s office has not yet commented on Bally’s decision to pause parts of the project.
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