Illinois Legislature’s 2026 Spring Agenda Puts Bally’s and Hawthorne in the Spotlight

Bally’s Chicago Casino: Delays and Legislative Intervention

The $1.7 billion Bally’s Chicago is the city’s first casino. The project — initially approved by the Chicago City Council in 2022 — includes plans for a casino, hotel, entertainment space, and ancillary amenities. It was initially expected to open in September 2026.

Construction Delays and Licensing Extension

Bally’s Chicago is one of the most high-profile development projects in Illinois’ gambling history. However, it has faced delays since its earliest stages. That includes clearing the site in the River North neighborhood where the Chicago Tribune’s former printing plant was located.

After months of negotiation, demolition began in 2024, followed by construction. From the beginning of construction, there were doubts, including from Chicago Mayor Brandon Johnson, about whether Bally’s could finance the project.

In 2024, the company secured $2.07 billion in funding from Gaming and Leisure Properties, easing financial concerns. In 2025, Bally’s also launched a $250 million IPO.
Still, construction fell behind due to various delays. Local reporting now confirms that the casino may not be completed until late 2027, beyond its original late-2026 target.

New Legislature Would Aid Bally’s

To address this delay and avoid a mandated closure of its temporary casino at Medinah Temple this September, state Rep. Kam Buckner introduced legislation that would authorize an extension of Bally’s temporary casino.

The bill would allow additional six-month operating extensions (with optional further periods) to bridge the construction gap.

Bally’s situation has placed the property on the legislative agenda as a state economic concern. With the General Assembly negotiating priorities amid budget pressures, lawmakers are considering how to prevent additional delays or even the failure to complete a casino that would generate significant future tax revenue and jobs.

Competitive and Regulatory Headwinds

On top of construction and legislative considerations, Bally’s Chicago faces a new competitive variable: the legalization of Video Gaming Terminals (VGTs) across bars and restaurants in Chicago.

VGTs are part of Chicago’s 2026 city budget that leaders are still negotiating and finalizing. Bally’s has publicly opposed this expansion. It has argued that the widespread deployment of VGTs could cannibalize revenue from its flagship casino, diminish city tax receipts, and potentially threaten projected employment levels tied to the resort.

Hawthorne Race Course: Financial Struggles and Possible Regulatory Action

Hawthorne Race Course — one of the few remaining horse racing venues in the Chicago region — has been struggling for years. Its long-planned racino (a combined race track and casino) project has yet to materialize.

Although the 2019 gambling expansion law authorized casino gaming at racetracks to support the industry, Hawthorne has not secured financing to build its facility. Its financial difficulties have manifested in cancelled racing weekends and uncertainty about its future viability.

The venue recently cancelled three weekends of racing, failing to pay more than $1 million in purses to horsemen. It cited an “unresolved banking issue” that left checks unpaid and participants without funds.

Although Hawthorne has committed to eventually distributing those funds once the banking situation is rectified, the episode has heightened concern among Illinois racing stakeholders about the viability of ongoing meets and the track’s ability to meet basic financial obligations.

Legislative Response

State Senator Patrick Joyce has filed a bill that would revoke Hawthorne’s veto power over competing racetrack projects in the Chicago area. That would effectively open the suburban market to new development proposals.

Senate proponents say that the industry should not allow a struggling venue to block competitive opportunities that could invigorate regional horse racing and related gaming revenue streams.

Senate leadership, including Illinois Senate President Don Harmon, has expressed frustration over Hawthorne’s lack of progress and its inability to convert a gambling license into a functioning racino, signaling potential appetite for regulatory reform this session.

Broader Legislative Context: Bears Stadium and Gambling Taxes

While Bally’s and Hawthorne occupy focused slots on the legislative calendar, they are part of a larger slate of contentious policy areas. The General Assembly is also weighing the Chicago Bears stadium debate. In particular, how property tax assistance or infrastructure support might influence the team’s planned move to Arlington Heights.

Tax disagreements with lawmakers have stalled the development. That has led to competing efforts by northwest Indiana legislators to attract the franchise across state lines.

Indiana legislators moved quickly and drafted a bill supporting the relocation within a month. At the same time, the NFL team has lobbied in Illinois for four years without success. The renewed threat of relocation, however, has injected urgency into the debate.

Illinois Governor JB Pritzker even walked back a September comment that the Bears need to pay off the debt on the existing stadium. That stands at over $500 million.

What to Expect This Spring

With the session running up to the May 31 budget deadline and a primary looming on March 17, legislators may prioritize bipartisan or fiscally focused measures. Key areas to watch include:

• Bally’s temporary licensing extensions to accommodate construction delays
• Racetrack regulatory reforms aimed at Hawthorne’s stalled racino development
• Gaming tax adjustments linked to broader fiscal strategies
• Infrastructure and tax negotiations surrounding the Bears’ stadium proposal