Bally’s Threatens to Sue Chicago for Allowing VGTs in New Budget Plan

Bally’s Corporation is threatening to sue the City of Chicago for threatening the success of its casino with a new proposal.

The Rhode Island-headquartered company said that it will seek legal action against the city if it does not pivot on its decision to legalize video gaming terminals (VGTs) in bars and convenience stores. In exchange, Bally’s said that it will award Chicago the revenue it expected to gain from VGTs.

A Baly’s official noted that VGTs were not in the picture when the gaming company agreed on a project that would create a mega-casino in the state’s largest city.

Bally’s argued for Chicago exclusivity

At a recent meeting with Chicago’s Workforce Development Committee, Bally’s senior vice president of corporate development, Christopher Jewett, reiterated to local officials that Bally’s was promised sole control of Chicago’s casino gaming ecosystem.

The agreement had been reached with Mayor Lori Lightfoot, who served from May 2019 until May 2023 and was later replaced by current mayor Brandon Johnson.

“Exclusivity was promised,” said Jewett.

Additionally, the Bally’s official implied to committee members that his company would not have agreed to its current arrangement had VGTs been in the picture. He concluded by saying that if VGTs are greenlit across the city, Bally’s would likely tear up its contract with Chicago and negotiate a new deal, utilizing the courts if necessary.

Progress toward Bally’s Chicago officially got underway when the company opened a temporary location at Medinah Temple in Sept. 2023 while it constructed its permanent location. 

Demolition at the casino’s permanent location began in Aug. 2024. The project faced several setbacks, but is expected to be completed in 2027.

Chicago has a lot to lose

Bally’s reneging on its deal with Chicago would stop the flow of $4 million annual licensing payments. The casino company also would not honor its diversity and union hiring pledges, and Chicago would lose hundreds of million in tax dollars if Bally’s backed out of the agreement.

Chicago faces an estimated $1.2 billion structural deficit, according to its 2026 budget. Installing VGTs would help the city slowly crawl out of the massive hole.

As a sign of good faith, Bally’s offered to immediately install slot machine lounges at the Chicago O’Hare and Chicago-Midway airports. The two locations serve over 105 million annual travelers, according to the City of Chicago’s website.

Mayor Johnson is on Bally’s side in the ongoing debates. The issue lies with the City Council, which approved the legalization of the machines against his behest.

Bally’s Chicago is estimated to cost $1.7 billion by the time it is completed. The city’s first downtown casino will serve customers 24/7 in the center of River North.

Guests will be treated to slot machines, live-dealer table games, bars and restaurants, a sportsbook, and related features.