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Bally’s Chicago Pays $4 Million Annual Fee Amidst Tensions with City Over Video Gambling Expansion

By jili tutorial · September 12, 2026

Bally’s Chicago Pays $4 Million Annual Fee Amidst Tensions with City Over Video Gambling Expansion

Overview of the Dispute and Payment

Despite growing friction between Bally’s Chicago and local government, the casino developer has fulfilled its annual $4 million payment obligation to the city. The payment, made on September 9, 2024, comes at a time when construction has stalled on all non-gaming elements of the $1.7 billion project. The central conflict revolves around Bally’s claim that Chicago’s approval of slot-like video gaming terminals (VGTs) violates the terms of the Host Community Agreement (HCA) these two parties established.

Key Payment Details

Under the HCA, Bally’s Chicago is required to make two distinct annual payments totaling $4 million:

The deadline for these payments is September 9 each year — the anniversary of the temporary casino’s opening at Medinah Temple in 2023. In addition to this recurring commitment, Bally’s paid Chicago a one-time $40 million upfront payment when the HCA was executed on June 9, 2022.

What Led to the Payment Dispute

Construction Halt on Non-Gaming Components

On August 9, 2024, Bally’s issued a notice to its general contractor, ordering an immediate stop to all non-casino construction elements. The impacted components include:

This halt leaves the overall $1.7 billion project in a state of limbo, with only the casino portion operating.

Bally’s Core Complaint: Video Gaming Terminals

Bally’s officials argue that the Chicago City Council’s decision to approve VGTs violates the exclusivity provisions in the Host Community Agreement. Specifically, the company claims the HCA prohibits the city from authorizing any new form of gambling, including VGTs in:

The City Council approved VGTs as part of the 2026 budget, projecting these machines will generate approximately $7 million per year in new tax revenue.

The HCA’s Renegotiation Clause

The Host Agreement’s language states that if Chicago authorizes a new casino, increases the gaming privilege tax imposed, or authorizes a “new form of gambling” under the Illinois Gambling Act, Bally’s’s obligation to pay annual impact fees “shall be subject to good-faith renegotiation.”

However, there is a critical legal nuance: while VGTs were authorized through the Illinois Video Gaming Act in 2009, the Illinois Gambling Act covers casino-style gambling. Bally’s argues that VGTs represent a new form of gambling under the framework, while city officials maintain the two statutes are distinct.

Political Context

Mayor Brandon Johnson’s Position

Mayor Brandon Johnson has consistently opposed VGTs, aligning with his predecessor, Lori Lightfoot, who originally negotiated the Bally’s deal. However, the City Council’s budgetary push for VGT approval went ahead despite the Mayor’s opposition.

City Council’s Stance

The Council has demanded that Bally’s restart resort-wide construction immediately. Meanwhile, Bally’s officials state they would not have submitted the original bid if they had known VGTs would operate across Chicago.

What Happens Next?

A Critical Update on September 14

Bally’s Corporation has scheduled a conference for September 14 at 12:00 PM ET. During this event, Bally’s Executive Chairman Soo Kim and other executives will “review progress and recent developments.” This meeting is expected to provide clarity on:

Potential outcomes include:

Key Takeaways

Conclusion

Bally’s Chicago continues to navigate a complex landscape where financial commitments, political pressures, and legal interpretation collide. The outcome of the September 14 update will likely shape whether Chicago gets a full-scale resort or a reduced casino with drawn-out litigation. For now, the $4 million payment ensures one critical obligation is met, but broader questions remain unanswered.