Bally’s Chicago Casino Pauses Construction Over VGT Debate

Bally’s paused construction on its near $2 billion casino-resort in Chicago, Illinois, due to disputes involving local gaming ordinances, the Chicago Tribune first reported.

Bally’s Corporation informed the Chicago Community Builders Collective (CCBC) on Sunday that it was pausing construction on the massive gaming facility and 34-story hotel. The decision was reached as Chicago lawmakers prepare to legalize video gaming terminals (VGTs) in bars, restaurants, and truck stops throughout the city. 

The River West casino complex is replacing a temporary facility at Medinah Temple and is expected to open in early 2027.

Bally’s Chicago on pause over VGTs

The temporary abandonment of construction relates entirely to the debate over VGTs. Bally’s has argued that the City Council’s support for VGT legalization violates the Host Community Agreement that was reached in June 2022 during Lori Lightfoot’s mayoral administration. 

According to the terms of their arrangement, casino-style gambling not conducted at the Bally’s casino would be totally illegal. 

Although a new mayor, Brandon Johnson, was appointed in the time since the plan was outlined, Johnson also does not support the legalization of VGTs. He has consistently argued that legalization would threaten the partnership with Bally’s, would not generate as much revenue as slot machines at casinos, and would improperly redirect critical revenue. He also called the Council “morally bankrupt” for continuing to push for their legalization.

“The potential for an uncontrolled proliferation of VGTs is in breach of the City’s commitment not to expand gaming in the Host Community Agreement and creates uncertainty that could be harmful for Bally’s Chicago prospects,” Bally’s said in a statement.

The casino company already said that it would withhold a $4 million community benefit payment to the city if it legalized VGTs.

Elizabeth Suever, vice president of government relations for Bally’s, also said her company estimated that legalizing VGTs could result in a yearly loss of $260 million in tax dollars. That included $70 million in direct losses for Chicago, not including the missing $4 million community benefit. 

“Based on the 37% revenue reduction seen at other casinos with the legalization of [video gambling terminals outside Chicago since 2012], we project a staggering reduction of 750 to 1,050 positions,” Suever said. “The jobs lost would be good-paying jobs with benefits that would no longer be available to your constituents.”

Future plans

Bally’s official description of its new construction plans was that it was “resetting the pace of construction.”

The hotel already held a “topping off” ceremony in May, honoring the placing of the final beam at the structure’s highest point. However, it is prepared to play hard ball for more than a year, if necessary. 

“Bally’s Chicago remains fully committed to the construction of its permanent casino and entertainment destination and will continue operating at Medinah Temple in accordance with all regulatory requirements during the extension period,” a company spokesperson said, per WGN9. “The adjusted timeline allows for Bally’s Chicago to operate the temporary casino inside of Medinah Temple through September 2027, if needed.”

A byproduct of the pause in construction is that 1,500 union workers are now out of a job — for the time being. Bally’s still believes that it will be ready for a Q1 or Q2 opening in 2027 if a resolution is reached.

The completed casino is expected to contain 3,400 slot machines, 170 live-dealer table games, and a sportsbook. It will also include 500 hotel rooms, a 3,000-seat theater, bars and restaurants, and a public park along the Chicago Riverwalk. 

Bally’s was chosen for the city’s available casino license at the end of a competitive bidding process, which was approved in 2019. The company made a $40 million one-time payment and promised $4 million in annual stipends.