The permanent casino remains on track for an early 2027 opening, but work on the hotel, event center and other non-gaming amenities has been put on hold as Bally’s and Chicago remain at odds over video gaming terminals.
CHICAGO — Bally’s massive casino development in River West is moving forward — but not all of it.
Bally’s has paused construction on most of the non-gaming portions of its planned $1.7 billion Chicago casino and entertainment complex, including the hotel, event center and several restaurants, as a dispute over the expansion of video gaming in Chicago continues.
The casino itself is not part of the construction pause. Bally’s has said the permanent gaming facility remains on track for an early 2027 opening.
The decision marks a significant escalation in a disagreement that has been building for months and raises new questions about how much of the larger resort will be completed alongside the casino.
A Dispute Over Video Gaming
At the center of the disagreement are video gaming terminals, commonly known as VGTs.
The machines are already widespread in bars, restaurants and other establishments across many Illinois communities, but Chicago historically prohibited them.
That changed when the Chicago City Council approved video gaming as part of the city’s 2026 budget process.
The city projected approximately $6.8 million in revenue from the newly authorized machines.
For Bally’s, however, widespread video gaming presents a different financial equation.
The company has argued that allowing VGTs throughout Chicago could pull gambling activity away from its casino and reduce the economic value of the destination resort it committed to developing.
Bally’s has previously estimated that widespread VGT adoption could cost Chicago tens of millions of dollars in annual casino-related tax revenue and potentially affect hundreds of jobs.
Those estimates are projections from Bally’s and have been part of a broader debate over the financial impact of video gaming in Chicago.
The Original Agreement Is Now Part of the Debate
The disagreement also reaches back to the deal that brought Bally’s to Chicago.
Bally’s and the City of Chicago signed a Host Community Agreement in 2022 establishing the framework for the development and operation of the city’s first casino.
The agreement includes provisions addressing circumstances in which additional forms of lawful gaming are authorized in Chicago and offered by other licensed operators.
As VGTs move into the Chicago market, those provisions have become increasingly important.
Bally’s has argued that the expansion of video gaming affects the economic environment surrounding its original agreement with the city and requires parts of that arrangement to be reconsidered.
The company has also previously raised questions about $4 million in annual host-community payments associated with the agreement.
The Johnson administration has expressed concerns about the VGT expansion as well and has pushed for the City Council to reconsider the policy.
The dispute has not resulted in a definitive public legal determination that Chicago violated its agreement with Bally’s.
Video Gaming Is Already Moving Forward
The debate is no longer just about what could happen.
In June, the Illinois Gaming Board approved the first video gaming licenses for establishments in Chicago.
At the time, nearly 300 additional bars and restaurants had reportedly submitted applications to offer video gaming.
That could create a dramatically different gambling landscape in Chicago — one where customers have access to gaming at neighborhood businesses throughout the city rather than primarily through a destination casino.
For Bally’s, that represents a major change from the environment that existed when the company was selected to develop the Chicago casino.
Bally’s Floated an Airport Alternative
Bally’s has also proposed another potential source of gaming revenue for Chicago.
In June, the company presented the idea of developing slot-machine lounges at O’Hare International Airport and Midway International Airport as an alternative to widespread neighborhood VGTs.
A Bally’s executive told aldermen that the company believed a single airport lounge could potentially generate about $5 million in gaming and admission taxes for the city.
The proposal has not resolved the larger disagreement over video gaming.
Construction Workers Could Be Affected
The construction pause could also have consequences beyond Bally’s and City Hall.
According to Bally’s, approximately 1,500 union construction workers could be placed on hiatus as work slows or stops on the affected portions of the River West development.
The figure is an estimate provided by the company.
Work on the casino portion of the project, however, is continuing.
The permanent casino is being developed at the former Chicago Tribune printing plant site along the Chicago River, replacing Bally’s temporary casino operation at Medinah Temple.
The broader vision for the property has included not only gaming, but also a hotel, restaurants, entertainment space and other amenities designed to turn the development into a larger destination.
It is those additional elements that are now at the center of the uncertainty.
What Happens Next
The next chapter may depend on what Chicago does with its video gaming policy — and whether the city and Bally’s can reach a new understanding.
For Chicago, the debate involves two potentially competing revenue models.
One would spread video gaming across bars, restaurants and other licensed establishments throughout the city.
The other centers on a large destination casino designed to generate gaming taxes while supporting tourism, hospitality, entertainment and employment.
For Bally’s, the question is whether the expansion of VGTs changes the economics behind the investment it originally agreed to make in Chicago.
For now, one important distinction remains.
The casino is still moving forward.
Much of the resort planned around it is currently on hold.
Marketing Media TV independently researched and prepared this report using multiple sources, including the City of Chicago–Bally’s Host Community Agreement, public reporting from WTTW, the Chicago Sun-Times and Chicago Tribune, Illinois gaming information, and Bally’s corporate materials. Statements and financial projections attributed to Bally’s represent the company’s position and should not be interpreted as independent findings by Marketing Media TV.
