Chicago Aldermen Press Bally’s to Restart Casino Hotel and Amenity Work

CHICAGO: A City Council majority is demanding that Bally’s resume work on the full $1.7 billion River West casino complex. Aldermen also plan a public hearing over the construction slowdown, project financing and whether the company is meeting its agreement with the city.

The intervention comes days after Bally’s paused work on most non-gaming portions of the development, including the hotel, event center and some restaurants. Construction of the casino itself is continuing, and Bally’s maintains that the permanent property remains targeted for an early 2027 opening.

Council Says Full Development Is Required

In a letter sent Wednesday, aldermen argued that Chicago’s Host Community Agreement with Bally’s covers the entire planned development rather than only the gaming floor. They called on Mayor Brandon Johnson’s administration to enforce the agreement and ensure that the operator completes the hotel, restaurants, entertainment space and other promised amenities.

“Chicago did not enter into an agreement for a casino floor alone. It entered into an agreement for the complete development Bally’s promised to build”, the council members wrote.

The letter argues that removing or delaying a component of the development could constitute a material change requiring city approval. It also points to provisions tying final completion to substantial completion of the hotel, restaurants, retail, event and exhibition space, green space and Riverwalk.

The council members said the slowdown could put union employment, economic activity and other expected public benefits at risk. Up to 1,500 union tradespeople have been working on the development, although Bally’s has not specified how many could be affected by the reduced construction activity.

Video Gambling Dispute Drives Construction Standoff

Bally’s announced the slowdown after Chicago lifted its ban on video gambling terminals as part of the city’s 2026 budget. The company argues that widespread VGT deployment would breach the city’s commitment not to expand gaming under the Host Community Agreement and could damage the economics of its casino investment.

The dispute has already prompted Bally’s to consider its legal options. The company has previously warned that expanded video gambling could reduce casino revenue, affect employment and change the financial assumptions behind payments promised to the city.

City Council members pushing back against the construction slowdown note that Chicago has not yet launched widespread VGT operations. Some aldermen have also questioned whether Bally’s financial position, rather than video gambling alone, is contributing to the decision to slow parts of the project.

Bally’s rejected suggestions that it plans to abandon the wider development. “We have held up, and will hold up, our end of the bargain”, the company said, adding that it intends to explain why it believes VGT expansion could materially affect its business.

Public Hearing Will Examine Financing and Timeline

The council members plan to schedule a public hearing involving Bally’s executives and the Johnson administration. They want answers on the reason for the slowdown, whether Bally’s has sufficient financing to complete the full development, and what steps City Hall is taking to enforce the Host Community Agreement.

The casino project has faced financing and logistical challenges since Bally’s was selected to develop Chicago’s first casino in 2022. The company has revised its hotel plans, secured additional financing and pushed the expected permanent opening into 2027.

The latest dispute does not currently change that casino opening target. The larger question is when construction on the hotel and other paused amenities will return to its previous pace, with Bally’s and City Council members now preparing to argue their positions at a public hearing.

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