Bally’s Chicago Construction: Non-Gaming Work Paused Amid VGT Dispute
Bally’s Chicago Construction: Non-Gaming Work Paused Amid VGT Dispute
Bally’s $1.7 billion permanent casino development in Chicago has hit another major milestone—but not the kind the company had hoped for. Over the weekend, Bally’s announced that it is “resetting the pace of construction” on several non-gaming components of the project, citing the city’s recent legalization of video gambling terminals (VGTs).
Bally’s Pauses Non-Gaming Construction
On Saturday, Bally’s notified the Chicago Community Builders Collective, the project’s general contractor, that work would temporarily stop on the hotel tower, event center, and restaurant facilities. The company stressed that the casino itself remains on track for an early 2027 opening, consistent with its most recent projections.
In a statement, Bally’s said the “uncontrolled proliferation” of VGTs within Chicago city limits violates the company’s Host Community Agreement (HCA) with the city. The company warned that certain HCA commitments—including a $4 million annual payment—could be put at risk by the expansion of gambling in the city.
“We do not take this lightly because of the potential impact on many of the 1,500 union trades people who have been working hard to build Bally’s Chicago,” the statement concluded. “We will continue to assess our options, which we hope will include more productive discussions with the mayor’s office and city council.”
This marks the fourth significant construction setback for Bally’s Chicago, the city’s sole casino license holder. Previous disruptions included debris falling into the Chicago River, unapproved contractors photographed at the site, and a major hotel redesign triggered by potential interference with city water lines.
Why VGTs Are a Major Concern
The legalization of VGTs in Chicago came out of a turbulent budget process last year. Mayor Brandon Johnson’s original budget proposal was rejected in favor of a $16.6 billion alternative pushed through by the city council. That plan earmarked over $6 million in VGT license revenue, which would translate into more than 2,500 licenses for local businesses.
VGTs have been legal in Illinois since 2009 and first went live in 2012. Since then, they’ve become the state’s most lucrative gaming segment. In 2025, Illinois’ 17 licensed casinos generated $430 million in tax revenue—less than half of the $1.1 billion collected from VGTs. Before this budget decision, Chicago had been one of the few remaining municipalities in the state without VGTs.
Bally’s has consistently pushed back against the machines since the budget passed, even as the rollout has been uneven. One proposed countermeasure involves installing slot machines at Midway and O’Hare airports, which the company believes could help offset revenue lost to VGTs. Bally’s estimates that VGTs could slash $74 million in revenue and put hundreds of jobs at risk.
Legal and Political Tensions Escalate
The conflict has spilled into local government as well. A June hearing on VGTs, led by the city’s Committee on Workforce and Development, was abruptly cut short after infighting broke out among officials.
Bally’s has also taken legal preparation seriously. In June, the company hired Fahner Rosenberg PLLC as it considers a potential lawsuit against the city over the machines. Notably, former Chicago mayor Lori Lightfoot—who faced heavy criticism for selecting Bally’s as the sole Chicago licensee in 2022—is a partner at that firm. Bally’s described the hiring as part of its “efforts to protect our investment” in the city.
Bally’s Secures Extended Licence Deadline
While the VGT issue remains unresolved, Bally’s did resolve another looming problem in Chicago this summer. The company had been facing a 9 September deadline to open its permanent casino, as its temporary license for the Medinah Temple casino was set to expire on that date. Missing the deadline would have forced Bally’s temporary casino to close.
A request for an extension was initially filed in January as HB4437, but the bill did not pass before the Illinois legislative session adjourned on 1 June. However, the extension language was ultimately included in the state’s 1,600-page omnibus revenue bill (SB3019), which did pass.
With the extension and the time already served by the temporary casino, Bally’s now has until 9 September 2027 to open the permanent casino. Given the current construction pause on non-gaming elements, the casino floor may be the only part of the project ready by then.
Jess Marquez has covered the global gaming industry since 2022. A native of Reno, Nevada, he’d like to note that it’s Ne-va-da, not Ne-VAH-da.