Bally’s highly anticipated casino project has hit a major roadblock as the company recently slowed down construction on critical elements of its $1.7 billion casino development. The decision effectively freezes much of the work on the planned River West casino complex. While the core casino is still expected to open in 2027, the surrounding amenities are on hold.
Expanded Video Gambling Could Hurt the Casino
The evolving dispute centers on Chicago’s recent decision to permit video gambling terminals (VGTs), commonly found in bars and restaurants across Illinois. According to Bally’s, allowing these machines breaks a key promise by the city when it agreed to host the casino. The company says that its 2022 agreement confirmed that Chicago would not expand its gaming options.
For Bally’s, the stakes are clear. Expanded video gambling options could divert potential customers before they even walk into the casino. Across Illinois, VGTs are already bringing in more net income than traditional casinos and produce higher tax revenues. Bally’s fears that bringing this model to Chicago could undermine the economic foundation of its casino project.
City officials disagree with this viewpoint. Chicago leaders approved video gambling to tap into a new revenue stream to answer rising budget challenges. Supporters say that the machines could help fill budget gaps without raising taxes. However, critics counter that VGTs may have hidden costs, such as extra regulation and social impacts that could outweigh the benefits.
These Machines Remain Highly Contentious
Chicago’s upcoming expansion into high-profile casino gambling has now been caught in the middle of these disputes. Bally’s initial 2022 pitch promised a luxurious destination with a 500-room hotel, thousands of gaming positions, and multiple entertainment venues. The new site was expected to bolster the local economy, providing an estimated $200 million in yearly tax revenue.
The decision to pause construction of the planned hotel tower, event space, restaurants, and food hall could affect roughly 1,500 union workers on the project. Bally’s has stated that it will pause work on these amenities until the city clarifies its gambling policy. The company is also considering withholding its $4 million annual payment tied to its agreement with the city.
Chicago’s political climate remains uneasy, with local leaders split on the future of VGTs and their expected benefits. The mayor’s attempt to revisit and potentially undo the policy has only caused further uncertainty. For Bally’s, the decision to pause construction could be a way to apply pressure while saving capital and mitigating potential risks.