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UKBally’s Chicago Faces Financial Questions As Casino Costs Mount
Key Highlights
- Bally’s says there’s “substantial doubt” about its ability to continue operating over the next year.
- The company expects roughly $400 million in costs to finish its permanent Chicago casino complex.
- Bally’s has clashed with Chicago officials over the city’s approval of video gambling terminals.
Bally’s, a major US gaming and entertainment company with 15 casinos, has raised concerns about its financial future as it works toward opening its permanent Chicago casino in River West.
Bally’s Issues Going-Concern Warning
In its Q2 2026 SEC filing, Bally’s claimed there’s substantial doubt about its ability to maintain operations into next year. It also outlined potential financing options, including asset sales, an equity sale, and additional debt financing.
The casino operator reported a $56.4 million loss during the first half of 2026 and accumulated a total deficit of $233.3 million. Bally’s temporary Chicago operation at Medinah Temple, meanwhile, has experienced significant losses and negative operating cash flow since launching.
Chicago Casino Costs Add Pressure
Bally’s expects to spend about $400 million over the next two years to complete its permanent casino at 777 W. Chicago Ave. The Medinah Temple casino, which opened roughly three years ago, has yet to reach the break-even point. The challenges facing Bally’s come as consumers have more gambling options, including online slot casinos, which offer convenient alternatives to visiting a physical casino.
Despite the financial disclosure, Bally’s says construction of the permanent casino hasn’t changed. The company says it’s focused on opening the facility in early 2027, even after halting work on non-gaming areas, including a hotel and event center.
Video Gambling Dispute Intensifies
Bally’s linked the slowdown on those non-gaming amenities to Chicago’s recent approval of video gambling terminals in bars, restaurants, and other properties.
The company argues the machines could reduce casino revenue, but some City Council members say the dispute is being used to justify construction delays tied to Bally’s financial position. The development also comes as interest in Illinois online casinos continues to grow, potentially creating another competitive consideration for traditional casino operators.
On August 12, 28 of Chicago’s 50 aldermen signed a letter calling on Bally’s to resume all work and publicly address the project’s progress. Bally’s, meanwhile, says it wants further discussions about how video gambling could affect city finances, pension funding, union jobs, and public safety.
