Bally’s Pauses Parts of $1.7B Chicago Casino Project in City Hall Standoff

CHICAGO: Bally’s is slowing construction on parts of its $1.7 billion permanent casino amid a dispute with City Hall over video gambling. Work on the hotel, event center and some restaurants is being paused, while the casino itself remains targeted for an early 2027 opening.

The company notified the Chicago Community Builders Collective that it was “resetting the pace of construction” on elements of the River West development. Bally’s said the change could affect many of the roughly 1,500 union tradespeople working on the project, but did not specify how many jobs would be interrupted.

Hotel and Entertainment Work Put on Hold

The construction change affects several non-gaming portions of the development, including the planned hotel, event center and some dining venues. Bally’s did not provide a timetable for when work on those components could return to its previous pace.

The casino floor remains under construction, and the company said its opening schedule has not changed. Bally’s maintains that it intends to meet its obligations under the Host Community Agreement governing the development.

Chicago selected Bally’s for the casino project in 2022, with plans for a large gaming and entertainment complex on the former Chicago Tribune Freedom Center site. The development calls for a 500-room hotel, a 3,000-seat entertainment venue, restaurants and thousands of gaming positions.

Construction reached a major milestone in April when the final structural beam was installed. The project has previously faced financing, design and construction issues, including changes to the hotel location and earlier work stoppages.

Video Gambling Fuels Contract Dispute

The current slowdown follows Chicago’s decision to lift its prohibition on video gambling terminals as part of the city’s $16.6 billion 2026 budget. The budget anticipated $6.8 million in revenue from allowing VGTs at qualifying bars, restaurants and other businesses.

Bally’s argues that widespread VGT expansion would violate the city’s commitments under its Host Community Agreement. “The potential for an uncontrolled proliferation of video gambling terminals (VGTs) is in breach of the City’s commitment not to expand gaming in the Host Community Agreement (HCA) and creates uncertainty that could be harmful for Bally’s Chicago prospects”, the company said.

The operator has previously threatened legal action if the city proceeds with the rollout. Bally’s hired a law firm that includes former Chicago Mayor Lori Lightfoot, whose administration selected the company for Chicago’s casino license, to advise it in the dispute.

Mayor Brandon Johnson has also raised concerns about whether introducing VGTs could conflict with the Bally’s agreement. The gambling provision was included in a City Council-backed budget that took effect without Johnson’s signature.

Permanent Casino Still Targeted for 2027

Bally’s is continuing to operate its temporary casino at Medinah Temple while the River West property is completed. The Illinois Gaming Board approved an extension in June allowing temporary Chicago casino operations to continue while construction proceeds.

The company said the latest construction decision does not change its target of opening the permanent casino in early 2027. “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,” Bally’s said.

The timetable for the hotel and other paused amenities now depends in part on how the VGT dispute develops. Bally’s said it will continue assessing its options while seeking further discussions with the Mayor’s Office and City Council.

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