Bally’s Chicago casino project is at the center of a growing standoff with city leadership. A majority of Chicago’s City Council, 28 alderpersons in all, sent a letter urging Mayor Brandon Johnson to enforce the city’s agreement with Bally’s after the operator paused work on parts of its $1.7 billion River West development. The dispute ties together a long-running fight over video gaming terminals with fresh questions about whether Bally’s finances, not policy, are really driving the slowdown.
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What Bally’s Paused, and What’s Still Moving
Bally’s announced it was resetting the pace of construction on non-gaming portions of the project, including its planned hotel, event center, and some restaurants. Work on the casino floor itself is continuing, and the company still expects its permanent Chicago property to open in early 2027. Bally’s has pointed to Chicago’s move to legalize video gaming terminals, commonly known as VGTs, as the reason for the pullback, arguing the change conflicts with the host community agreement it signed with the city and could cut into the casino’s revenue.
Alderpersons Push Back on the VGT Explanation
The 28 alderpersons behind the letter argue that Bally’s can’t treat the casino floor as separate from everything else it agreed to build. They say the project’s completion depends on the hotel, retail space, event space, green space, and riverwalk components coming together as a whole, not just the gaming floor opening on schedule. The group has floated a public hearing and potential legal action if the city doesn’t step in to enforce the agreement.
Some council members are openly skeptical that VGTs are the real reason for the delay, pointing out that Chicago hasn’t even issued a VGT license yet, meaning no newly authorized machines are currently operating in the city. That’s led several alderpersons to suggest the slowdown has more to do with Bally’s cash flow than with the terminals themselves.
A Broader Financial Picture
The skepticism lines up with what’s been surfacing elsewhere in Bally’s finances. The Chicago project has already dealt with an $800 million funding gap, changes to its hotel plans, and delays that pushed the opening from an earlier target into 2027. According to SEC filings, Bally’s secured a conditional waiver on a leverage covenant from its lenders earlier this year and amended its credit agreement again in late July, with a requirement to maintain at least $325 million in liquidity through the back half of 2026.
Bally’s hasn’t confirmed that financial pressure played a role in the Chicago slowdown. But the timing puts it alongside other recent moves by the company, including its disclosed need for new financing and reports that it may sell its planned Las Vegas casino project, both signs that Bally’s is actively managing capital across several major developments at once.
The VGT Dispute, in Context
Chicago legalized VGTs as part of its $16.6 billion city budget, with officials projecting roughly $6.8 million in licensing revenue. Mayor Johnson opposed the move, arguing that slot revenue at the Bally’s casino is taxed at a much higher rate than VGT revenue would be, and that the change could ultimately cost the city money rather than raise it. Bally’s has estimated the shift could cost Chicago as much as $74 million a year in revenue and put over a thousand casino jobs at risk, and the company has hired outside legal counsel while it weighs a legal challenge.
Not every council member sees Bally’s actions as a problem. Alderman Walter Burnett, whose ward includes the casino site, has said he believes the company is acting within its rights, comparing it to any business reevaluating costs when it expects a hit to future revenue.
Why This Matters
For a project already running behind schedule and over budget, a public fight with the City Council adds another layer of uncertainty to Bally’s Chicago plans. The casino floor itself remains on track for 2027, so the immediate gaming experience isn’t in question. But the standoff is a reminder that even a major, established operator can face real friction when local politics, regulatory changes, and company finances collide, and it’s a story worth watching for anyone keeping an eye on Bally’s broader expansion across the US.
