Bally’s Chicago Halts Construction as Casino Ups Ante in Video Gaming Terminal Fight

Bally’s Chicago Halts Construction as Casino Ups Ante in Video Gaming Terminal Fight

Construction on Bally's Chicago's $1.7 billion resort casino has been put on hold, which appears to increase the stakes in the developer's protracted conflict with the city's slot-like video gaming terminals (VGTs).

Bally's Corporation informed the Chicago Community Builders Collective (CCBC) on Sunday, August 9, that development on the 34-story hotel and other non-gaming amenities will be suspended. In the River West district, the permanent casino is still scheduled to open early next year.

The startling revelation coincides with Bally's opposition to the city's proposal to permit VGTs in truck stops, restaurants, pubs and taverns, and veteran's and fraternal organizations.

Bally's argues that the casino company's Host Community Agreement, which was signed in June 2022 while Lori Lightfoot was still mayor, is violated by the City Council's VGT endorsement. This agreement states that no other casino-style gaming is allowed inside the city borders.

“The potential for an uncontrolled proliferation of VGTs is in breach of the City’s commitment not to expand gaming in the Host Community Agreement and creates uncertainty that could be harmful for Bally’s Chicago prospects,” the company said in a statement.

On Sunday, Mayor Brandon Johnson, who has been at differences with the City Council over VGTs, did not immediately reply to a request for comment.

Bally's Bluff?

Bally's informed the CCBC that it is "resetting the pace of construction" for certain of the $1.7 billion project's "elements." But since the 34-story hotel tower was completed in May, Bally's has borrowed hundreds of millions of dollars, mostly from Gaming & Leisure Properties, Inc., the resort's future landlord.

In its ongoing effort to keep VGTs out of Chicago, Bally's may be using the construction halt as leverage.According to the Chicago Tribune, unless the City Council reconsiders its support for VGT, Bally's intends to withhold an annual $4 million city payment that is due in September.

In order to manage its government relations in handling the VGT conflict, Bally's hired Lightfoot's legal company, Fahner Rosenberg (formerly RFK Global), in late June.

“As we ramp up our efforts to protect our investment in the city, we have also brought on the strategic counsel of RKF Global, where former Mayor Lightfoot is a partner,” a Bally’s statement read. “We are pleased to have built an excellent and knowledgeable team here in Chicago.”

With 3,400 slot machines, 170 table games, and a sportsbook, Bally's Chicago is a planned casino. The 500-room hotel, a 3,000-seat theater, a number of eateries and bars, and a public park beside the Chicago Riverwalk are all features of the resort.

Since September 2023, the temporary Bally's Chicago casino has been open in the Medinah Temple.

Exclusivity in Gaming

Bally's was victorious in Chicago's fiercely competitive campaign for a downtown casino resort license, which was approved by state law in 2019. Lightfoot led the city's selection committee, which selected Bally's over a number of other bids, including those from Chicago-based Rush Street Gaming and Hard Rock International.

Bally's promised to help the city with a yearly commitment of $4 million and a one-time payment of $40 million if they were declared the winner. Additionally, Bally's stated that it will generate 3,000 permanent jobs and 3,000 construction jobs.

According to Bally's representatives, those promises were made in exchange for gaming exclusivity.

“[Exclusivity] drove up our bid. If we had known we wouldn’t have exclusivity, our bid would have been completely different,” said Christopher Jewett, Bally’s senior vice president of corporate development. “Exclusivity was promised.”