Bally’s pauses Chicago casino amenities amid VGT dispute
The $1.7bn River West project is facing a construction slowdown after Chicago approved the expansion of video gaming terminals.
US.- Bally’s has paused construction on several major components of its $1.7bn River West casino development in Chicago amid a dispute over the city’s decision to expand video gambling terminals (VGTs). The slowdown affects the project’s planned hotel tower, event space, restaurants and food hall, while construction of the core casino is expected to continue.
Bally’s still anticipates opening the casino in 2027, but the company said work on the additional amenities will remain on hold until there is greater clarity over Chicago’s gambling policy. At the centre of the dispute is the city’s decision to allow VGTs, which are already widely used in bars and restaurants across Illinois. Bally’s argues that the move contradicts commitments included in its 2022 agreement with Chicago, under which the company says the city agreed not to expand competing gaming options.
Bally’s warns of impact on casino revenues
The company is concerned that wider access to VGTs could draw customers away from its casino before they visit the property. The concern comes as video gaming has become a significant part of Illinois’ gambling market, with these machines generating more net income than traditional casinos in the state and contributing substantial tax revenue.
Chicago officials, however, see the expansion as another source of funding as the city faces budget pressures. Supporters argue that VGT revenue could help address fiscal gaps without requiring additional taxes, while opponents have raised concerns about the regulatory and social costs associated with the machines.
Bally’s originally presented the River West development as a major entertainment destination, including a 500-room hotel, thousands of gaming positions and multiple entertainment offerings. The project was also expected to generate around $200m in annual tax revenue for Chicago.
The construction pause could affect approximately 1,500 union workers involved in the project. Bally’s has also indicated that it is considering withholding a $4m annual payment required under its agreement with the city.
