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State of Play’s TL;DR
- Bally’s sent Chicago $4 million under its host agreement.
- The company that is building a $1.7 billion casino in the city had said it might not make the payment as it disputes the city’s move to allow video gambling terminals.
Bally’s paid Chicago $4 million on Sept. 9 under its host community agreement, even as the company continues to challenge the city’s decision to move forward with video gambling terminals that it says could undercut its planned $1.7 billion casino in River West.
Bally’s had previously suggested it might withhold the money while seeking changes to the 2022 agreement. Instead, it made two $2 million payments as Chicago pushes ahead with a local permitting process for video gambling operators and includes the machines in its 2026 budget.
Chicago projects about $6.8 million in added revenue from video gambling terminals in the first budget period. Bally’s has argued that allowing the machines in places such as bars and restaurants changes the competitive landscape around the company’s flagship Chicago casino development.
Chicago moves forward on VGT rollout
Bally’s has tried to renegotiate its contract with the city and has threatened legal action over the expansion of video gambling terminals. At the same time, the regulatory process is continuing.
The Illinois Gaming Board has approved 63 applications, while 23 operators have applied for city permits, according to the mayor’s office. Chicago’s administration has already begun the local permits process.
The dispute comes as Bally’s weighs its broader strategy in the market. The report said Bally’s had held discussions for months with Gold Rush Gaming about a possible acquisition or partnership, according to Gold Rush owner Rick Heidner, but those talks did not produce an agreement.
Project scope and construction remain under pressure
Bally’s Chicago development has already been scaled back and delayed. In August, the company suspended construction on some non-gaming parts of the project. Bally’s has said those changes reflect a reassessment of the Chicago gambling market rather than broader financial trouble.
Still, the numbers around the project remain significant. Bally’s reported a second-quarter net loss attributable to shareholders of $146.1 million and about $5 billion in debt. The company said about 1,000 workers remain on the project, while 136 employees have lost their jobs because of the construction changes.
The original plan included a 500-room hotel, a 3,000-seat theater, restaurants, bars, convention space, and outdoor public areas. Executives have since confirmed only 100 hotel rooms instead of the 500 first proposed.
Based on reporting by Silvia Pavlof for Gambling News.
