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State of Play
- Bally’s ongoing plans for a $2 billion Chicago casino face new challenges as debates around video gaming terminals (VGTs) intensify.
- Bally’s argues that legalizing VGTs could harm revenue and jobs while city officials explore VGTs as a new revenue source amid underperforming casino tax returns.
Bally’s, a global entertainment leader with a significant presence both digitally and in traditional casinos, is developing a major casino project in Chicago’s River West neighborhood scheduled to open in September 2026.
Recently, Bally’s voiced strong opposition to a city council proposal to legalize video gaming terminals (VGTs), a move intended to generate $6.8 million in licensing revenue for Chicago.
Bally’s contends that introducing unregulated, independently managed VGTs would actually disrupt the casino’s revenue stream, leading to substantial job losses and zero net revenue for the city in fiscal year 2026. The debate gains urgency given Bally’s underperformance at its temporary River North casino, which has generated significantly less tax revenue than city projections for 2024 and 2025.
Chicago seeking more revenue from gambling
The VGT debate is critical. Bally’s warns that legalization threatens its Host Community Agreement, under which it contributes $4 million annually to the city, a contribution at risk if VGTs are approved.
Alderman Anthony Beale, advocating for VGT legalization, highlighted the prevalence of 3,000 illegal sweepstakes machines across the city that yield no revenue, suggesting regulated VGTs could make up the difference the city is losing from Bally’s temporary casino.
At the same time, the city is considering new high tax rates on sports betting revenue, heightening fiscal pressures on all gaming operators. llinois real-money online casinos remain illegal, while sweepstakes casinos operate unimpeded in the Land of Lincoln but do not pay taxes to the state.
Chicago’s decision on VGTs remains pivotal, with potential impacts on casino investments, city revenue projections, and job creation. As Bally’s simultaneously advances a $4 billion casino project in New York, Chicago’s regulatory environment and fiscal strategies will test the city’s ability to balance gaming growth with economic sustainability.
Based on reporting by Melanie Porter for Gambling News.
