Twenty-eight members of Chicago's City Council have signed a letter demanding that Bally's resume construction on all components of its $1.7bn casino resort. The operator paused work on the hotel, event centre and parts of the restaurant space, citing the city's legalisation of video gaming terminals. The gaming floor remains under construction, with opening scheduled for early 2027.
Bally's maintains that Chicago's decision to allow VGTs breaches its agreement with the city and will hurt casino revenue. Alderpersons are not convinced. Brendan Reilly said plainly: 'Many of us suspect this is a cash-flow problem and VGTs are just an excuse.' Anthony Beale backed him, noting that licences for terminals in Chicago have not even been issued yet.
SEC filings confirm the strain. In May, Bally's obtained a waiver from lenders on its leverage covenant; on 29 July it amended its credit agreement with Deutsche Bank. The terms require the operator to maintain at least $325m in liquidity at the end of Q2 and Q3 2026. The project faces an $800m funding shortfall, and the temporary casino is generating less tax revenue than projected.
Alderpersons reminded Bally's that the contract ties final delivery to completion of the hotel, retail zones, exhibition space and riverfront, not just the gaming floor. They demanded that Mayor Brandon Johnson enforce the obligations and threatened hearings and litigation. Chicago legalised VGTs in its $16.6bn budget, expecting $6.8m in licensing revenue. Bally's has warned that the terminals could cost the city $74m a year and 1,050 casino jobs.
