Bally's Halts Work on Chicago Casino Amenities After the City Allowed Video Gambling Terminals

Bally's has slowed construction on major parts of its $1.7 billion River West casino development in Chicago, freezing work on the surrounding amenities while the core casino remains on track to open in 2027.

The dispute is over video gambling terminals. Chicago recently decided to permit VGTs, the machines already common in bars and restaurants across Illinois, and Bally's says that breaks a commitment in its 2022 agreement that the city would not expand its gaming options. The commercial concern is direct: VGTs across Illinois already generate more net income than traditional casinos and produce higher tax revenues, and Bally's argues that bringing the model into Chicago would divert customers before they reach the casino floor.

City officials see it differently. Chicago approved video gambling to open a new revenue stream against rising budget pressure, with supporters arguing the machines can fill gaps without raising taxes. Critics point to added regulation and social costs.

The paused work covers the planned hotel tower, event space, restaurants and food hall, and could affect roughly 1,500 union workers. Bally's says it will hold off until the city clarifies its gambling policy, and is also considering withholding the $4 million annual payment tied to its agreement with Chicago.

The original 2022 pitch promised a 500-room hotel, thousands of gaming positions and multiple entertainment venues, with an estimated $200 million a year in tax revenue for the city. Local leaders remain split on VGTs, and the mayor's move to revisit the policy has added to the uncertainty. Pausing construction lets Bally's apply pressure while conserving capital. Tribal operators are stuck on a different kind of hold, with deals awaiting sign-off from a National Indian Gaming Commission that has had no chair since January.