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Bally’s Chicago is threatening legal action against the city after aldermen approved video gambling terminals, or VGTs, as part of Chicago’s 2026 budget plan. At the same time, the casino operator is proposing slot machine lounges at O’Hare and Midway airports as an alternative source of revenue.
The dispute centers on a 2022 Host Community Agreement negotiated under former Mayor Lori Lightfoot. Under the deal, Bally’s secured the right to build Chicago’s first casino in exchange for a $40 million upfront payment and annual licensing payments of $4 million. Bally’s argues the agreement depended on Chicago maintaining its long-standing ban on casino-style gaming devices outside the casino.
Chicago historically prohibited VGTs in bars, restaurants and convenience stores, even as the machines expanded across much of Illinois. That changed when the City Council approved the city’s 2026 budget, which projected roughly $6.8 million in VGT licensing revenue.
Mayor Brandon Johnson has opposed the expansion, but several aldermen support the measure as a way to address the city’s ongoing budget shortfall.
Bally’s says VGTs approval violates casino agreement
During a recent City Council Committee on Workforce Development hearing, Bally’s Senior Vice President Christopher Jewett said the company would not have agreed to the original casino terms if it expected Chicago to later authorize competing gaming devices throughout the city.
Bally’s warned that if the agreement is effectively voided, the company could stop making its annual $4 million payments and reconsider commitments tied to union labor and diversity hiring. Company representatives also argued widespread VGT expansion could reduce casino tax revenue and threaten hundreds of union jobs tied to Bally’s casino operations.
Bally’s pushes airport slot lounges as revenue replacement
As an alternative, Bally’s proposed accelerating plans for slot machine lounges inside O’Hare and Midway airports. The 2019 Rebuild Illinois Act already authorized airport gaming beyond TSA checkpoints with city approval.
Jewett told aldermen each of O’Hare’s four terminals and Midway’s single terminal could support one gaming lounge. Bally’s estimates each location could generate roughly $5 million annually in gaming and admission taxes, potentially replacing the revenue expected from VGT licensing, according to news by the Chicago Sun-Times.
City officials have reportedly been discussing the airport gaming proposal with Bally’s for months, including possible locations at Midway Airport.
Skeptics raise questions about airport gaming funds
Not all city officials support the proposal. Alderman Anthony Beale, a vocal backer of VGT legalization, questioned why Bally’s had not pursued airport gaming sooner despite having state authorization for years.
Critics also raised concerns that airport gaming revenue could be restricted to airport-related funds instead of flowing into Chicago’s general budget.
According to a report by CBS Chicago, no final action was taken during the hearing, leaving unresolved questions about whether the city will proceed with VGT licensing, renegotiate its agreement with Bally’s or pursue airport gaming as a compromise.
Bally’s permanent Chicago casino targets 2027 opening
Bally’s continues operating its temporary casino at Medinah Temple while construction moves forward on its permanent $1.7 billion casino and entertainment complex in River West. The company is currently targeting an early 2027 opening.
The outcome of the dispute could have significant financial implications for Chicago, as casino tax revenue was expected to help fund the city’s police and fire pension obligations.
