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UKBally’s Chicago Casino Halts Hotel & Amenity Construction Amid Video Gambling Dispute
Key Highlights
- Bally’s Chicago has paused construction on most non-gaming parts of its $1.7 billion River West casino complex.
- The company argues Chicago’s planned video gambling rollout violates its 2022 host agreement with the city.
- Around 1,500 union workers are affected, while the casino itself remains scheduled to open in early 2027.
Bally’s Chicago has stalled construction on its new $1.7 billion casino development in River West due to a conflict with City Hall over video gambling terminals (VGTs).
Bally’s Pauses Major Construction Work
On August 9, Bally’s notified the Chicago Community Builders Collective (CCBC) that it was suspending work on most non-gaming amenities at the massive River West development. The interactive entertainment and sports betting company staunchly opposes the Chicago City Council’s recent decision to authorize the use of VGTs, which function similarly to slot machines, in restaurants, bars and taverns, and other venues.
The pause affects the planned hotel, events center, restaurants, food hall, and other amenities in the $1.7 billion development. Bally’s said about 1,500 union workers are being placed on hiatus as construction slows, although work tied to the casino itself is continuing toward, with an early 2027 opening still possible.
The 34-story hotel has already reached its full height, but Bally’s is delaying its launch until the dispute with City Hall is resolved.
Video Gambling Creates New Tensions
Bally’s contends that Chicago’s move to allow VGTs breaches commitments made under its Host Community Agreement, signed in 2022 under former Chicago Mayor Lori Lightfoot. Brandon Johnson, named the 57th mayor of Chicago in 2023, has been at odds with the City Council over the issue of gambling in Illinois.
Chicago approved video gambling last fall, with council members including projected VGT revenue in the 2026 budget to help cover a $6.8 million funding gap. As of July, 268 Chicago locations had applications pending with the Illinois Gaming Board, although none had been approved to operate.
Bally’s retained RKF Global to assist with the VGT dispute. Lightfoot, whose administration selected Bally’s to develop the city’s first casino, is a partner with the law firm.
Casino Opening Plans Continue
Despite the construction slowdown, Bally’s intends to meet its obligations under the host agreement, according to sources familiar with the situation.
The original development plan includes a 500-room hotel, a 3,000-seat theater, 10 restaurants, and 4,000 gaming positions at the former Tribune printing plant site. Bally’s has also operated its temporary Medinah Temple casino since 2023.
According to the Chicago Tribune, Bally’s is considering withholding a $4 million annual payment to the city due in September while the disagreement continues. The operator is expected to accelerate construction efforts if Chicago reverses course on VGTs.
