Bally's has halted construction on most non-gaming amenities at its $1.7 billion permanent Chicago casino site. The freeze affects the 500-room hotel, events center, restaurants and food hall. The casino itself remains on schedule for early 2027. Around 1,500 construction workers have been idled.
The dispute centres on video gambling terminals. Bally's argues that Chicago's decision to allow VGTs breaches a 2022 agreement that, in the operator's view, guaranteed no expansion of gaming supply in the city. Chicago approved VGTs last autumn and wrote terminal revenue into its 2026 budget to cover a $6.8 million deficit. Illinois Gaming Board data show 268 applications filed for Chicago VGT locations as of last month; none have been approved yet. Across Illinois, nearly 50,000 terminals operate in more than 8,700 locations, competing with casinos for gaming revenue.
Bally's is considering withholding a $4 million annual payment to the city due in September until the conflict is resolved. The stakes are material: Chicago expects the permanent casino to generate around $200 million a year in local taxes. Bally's won the project rights in 2022; the complex is planned to include a 3,000-seat theatre, ten restaurants and 4,000 gaming positions. Construction began in August 2024, and the 34-storey hotel has reached full height. Bally's has operated a temporary casino at Medinah Temple since 2023.
Local media report that if the city withdraws VGT approval, Bally's is prepared to accelerate the build. The company has hired law firm RKF Global to settle the dispute — the firm employs former mayor Lori Lightfoot, whose administration selected Bally's for Chicago's first casino.
