Chicago City Council Demands Bally’s Resume Casino Construction

A majority of Chicago’s City Council is demanding that Bally’s resume full construction of its $1.7 billion casino development after the company paused work on several non-gaming components. The latest development escalates an ongoing dispute over video gaming terminals (VGTs) while raising new questions over the operator’s finances.

Twenty-eight alderpersons signed a letter on Wednesday calling on Mayor Brandon Johnson to enforce the city’s host community agreement with Bally’s after the operator paused work on non-gaming portions of the River West development, according to the Chicago Sun-Times.

Bally’s announced Sunday that it was “resetting the pace of construction” on parts of the project. Those include its hotel, event center and some restaurants. Construction of the casino itself is continuing, with the permanent property still scheduled to open in early 2027.

The company blamed the slowdown on Chicago’s decision to legalize VGTs. Bally’s has long argued that the terminal legalization violates the host agreement and could affect the property’s revenue.

However, the 28 alderpersons, who were part of the coalition that rejected Johnson’s corporate head tax and advanced an alternative 2026 budget, argue that Bally’s cannot separate the casino floor from the other components it committed to build.

Final completion … expressly depends upon substantial completion of the hotel, retail, event space, exhibition space, green space, Riverwalk and other components — not merely the gaming floor,” the alderpersons wrote, per the Sun-Times.

They called on Johnson to ensure Bally’s “delivers the complete project it committed to build.” The group threatened to hold a public hearing and potentially take legal action if the agreement is not enforced.

Council Questions Bally’s Finances

Some alderpersons contest Bally’s claim that VGTs are the reason for the slowdown.

Ald. Brendan Reilly noted that Chicago has yet to issue a VGT license. That means no newly authorized machines are operating in the city.

Many of us suspect that this is really a cash flow issue for Bally’s, and they’re trying to turn lemons into lemonade by blaming VGT as the reason they’re slowing down construction,” Reilly said.

Ald. Anthony Beale, who has pushed for VGT legalization, echoed those concerns.

We believe they don’t have the cash flow, and they’re blaming VGTs that are not even operational in the city of Chicago,” Beale said.

Council members previously questioned the performance of Bally’s temporary casino, which has generated less tax revenue than initially projected.

Bally’s Chicago has faced multiple challenges. That includes an $800 million funding gap, changes to its hotel plans and broader delays that pushed the expected opening into 2027.

According to SEC filings, Bally’s has recently amended its broader credit arrangements. The company secured a conditional waiver of a leverage covenant from lenders in May before amending its Deutsche Bank credit agreement again on July 29.

During the waiver period, Bally’s is required to maintain at least $325 million in liquidity at the end of the second and third quarters of 2026.

Bally’s has not said financial constraints prompted the Chicago slowdown.

VGT Fight Escalates

After lengthy debates, Chicago legalized VGTs in the $16.6 billion budget. City officials project $6.8 million in revenue from licensing the machines.

Johnson has opposed VGTs’ legalization, arguing it will divert revenue from the Bally’s casino. He noted that slot revenue is taxed at roughly four times the rate of VGTs. Johnson also argued that legalizing the machines could violate the terms agreed to under the city’s host community agreement with the operator.

After Bally’s slowdown, Johnston said he expected the move.

Bally’s has repeatedly raised that argument. Bally’s has warned that the change could cost Chicago $74 million in annual revenue and up to 1,050 casino jobs. In June, Bally’s hired former Mayor Lori Lightfoot’s law firm as it considered legal action over the VGT decision.

The company said this week it remains committed to the Chicago project.

We have held up, and will hold up, our end of the bargain,” Bally’s said.

Ald. Walter Burnett, whose ward includes the casino development, disagreed with colleagues questioning Bally’s actions and said he believes the company remains within its legal rights.

If you assume that your revenue is going to go down to nothing, you want to reevaluate the cost before you have to commit everything to it,” Burnett said.