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State of Play’s TL;DR
- Bally’s Corp. officials were questioned Tuesday by members of the Chicago City Council.
- They sought answers as to why the company paused construction on parts of its River West casino project.
Chicago alderpeople grilled Bally’s Corp. officials for more than 3.5 hours on Tuesday over the company’s decision to pause parts of its River West casino project as a fight over video gambling in bars and restaurants appears headed for court.
The dispute matters because Bally’s permanent casino was expected to help fund Chicago’s police and fire pensions, while the city’s 2026 budget also relies on $6.8 million in video gambling revenue that had not materialized more than eight months into the year.
The standoff now puts pressure on both the operator and city leaders as they argue over whether either side violated their agreement.
Bally’s says video gambling could hurt casino economics
Bally’s senior vice president Christopher Jewett told council members the company needs time to assess what legal video gambling terminals across thousands of Chicago bars and restaurants could mean for the casino’s finances. He also said Bally’s had enough cash on hand to complete the project.
City officials and several alderpeople pushed back, with some arguing Bally’s breached its deal with Chicago by stopping work.
Bally’s denied that claim.
The City Council voted to allow video gambling terminals in every Chicago bar and restaurant, a change Bally’s says could undercut the economics of its casino development. Bally’s has asked the council to reimpose the ban on video gambling outside the casino.
Bally’s temporary casino generated $15.28 million in new gaming tax revenue for the city in 2025 and posted nearly $125 million in adjusted gross revenue. That was still well below the more than $253 million city officials had originally projected.
A city consultant’s study warned that legalizing video gambling could cost nearly 400 jobs at the casino. Johnson administration officials also warned council members that Bally’s would stop paying the city $4 million annually if video gambling were approved.
The construction pause has already affected workers. Bally’s laid off 12% of the 1,500 people building the hotel, concert venue, and restaurant tied to the project.
Revenue, licensing, and legal questions remain unresolved
The permanent casino is still scheduled to open as planned, according to Bally’s officials. But key questions remain unresolved, including whether Bally’s will restart full construction and whether the city will move to restore the ban on video gambling outside the casino.
Chicago’s video gambling rollout is also incomplete. State officials had approved 63 video gambling licenses in the city, but none of the terminals have been plugged in. Twenty-three bars and restaurants had applied for city licenses, with 13 applications ready for Chicago police review, while another 285 venues had applied for state licenses.
The hearing reflected the political stakes around the impasse. Ald. Brendan Reilly called the situation “wholly inappropriate and totally nontransparent.” Ald. Marty Quinn described the hearing as an “absolute circus.” Ald. William Hall said “People have become pawns.”
What comes next is likely to center on whether the deadlock moves into court and whether Chicago advances or slows approvals for bar and restaurant video gambling licenses.
Based on reporting by Heather Cherone for WTTW.
