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State of Play’s TL;DR
- Bally’s Chicago has stopped construction on some parts of its permanent casino project in River West.
- The company said the ongoing dispute with the city of Chicago over video gambling terminals is the reason for the delay.
Bally’s Chicago has paused construction on most non-gaming parts of its $1.7 billion permanent casino project in River West, citing a dispute with the city over video gambling terminals.
The company said the casino itself is still on track to open in early 2027, but work on the planned hotel, events center, restaurants, food hall, and other amenities has been slowed or put on hold.
The stoppage affects about 1,500 union workers and raises new questions about the city’s expected tax and fee revenue from the project.
What Bally’s says is at stake
Bally’s said in a statement that it notified the Chicago Community Builders Collective that it is “resetting the pace of construction” on parts of the permanent casino. The company argued that Chicago’s move to legalize video gambling terminals (VGTs) breaches its agreement with Bally’s.
“The potential for an uncontrolled proliferation of video gambling terminals is in breach of the city’s commitment not to expand gaming in the Host Community Agreement and creates uncertainty that could be harmful for Bally’s Chicago prospects.”
Chicago approved video gambling last fall, and aldermen included projected terminal revenue in the 2026 city budget. As of last month, there were 268 pending Chicago VGT location applications at the Illinois Gaming Board, though none had yet been approved to begin operating.
Bally’s has also warned of financial consequences beyond the construction slowdown. According to the Chicago Tribune, the company is planning to withhold an annual $4 million payment due to the city in September until the dispute is resolved.
The permanent Bally’s complex is projected by the city to generate $200 million in annual local tax revenue. Bally’s won approval in May 2022 to build the entertainment complex at the former Tribune printing plant site in River West.
What remains on track and what comes next
While non-gaming development is paused, Bally’s said the gaming portion of the project is still moving toward an early 2027 launch. The full development plan includes a 500-room hotel, a 3,000-seat theater, 10 restaurants, and 4,000 gaming positions.
Bally’s has been operating a temporary casino at Medinah Temple in River North since 2023. The company also retained law firm RKF Global to help navigate the VGT dispute.
In its statement, Bally’s said it does not “take this lightly because of the potential impact on many of the 1,500 union trades people who have been working hard to build Bally’s Chicago.” The company added:
“We will continue to assess our options, which we hope will include more productive discussions with the Mayor’s Office and City Council.”
For now, the main open questions are how long the construction pause will last, whether Illinois will move forward with any VGT approvals for Chicago, and whether the city and Bally’s can resolve the host community agreement dispute before more of the project is affected.
Based on reporting by Robert Channick for the Chicago Tribune via Yahoo Finance.
