Politics
Alderpeople Weigh in on Bally’s Slowing Construction, Shaky Revenue From Video Gambling Terminals
Bally’s is slowing construction on parts of its $1.7 billion casino and entertainment complex in River West, following the Chicago City Council’s approval of video gambling terminals in bars and restaurants.
“The potential for an uncontrolled proliferation of video gambling terminals (VGTs) is in breach of the City’s commitment not to expand gaming in the Host Community Agreement (HCA) and creates uncertainty that could be harmful for Bally’s Chicago prospects,” Bally’s said in a statement.
Bally’s said it’s still committed to opening the permanent casino by early 2027.
But in a letter sent to the company, 28 members of City Council are accusing Bally’s of using the video gambling approval to hide problems with cash flow and delay construction.
Ald. Bill Conway (34th Ward) signed the letter. He said that if Bally’s defaults on the agreement, the city has access to “draconian” remedies.
“If they continue along this path, they will be in default of the agreement,” Conway said. “The remedies at the city’s disposal are draconian — specific performance, liquidated damages — hopefully it doesn’t come to that.”
Conway said Bally’s would have to prove that video gambling terminals are harming its business to receive any remedies. Those remedies could include renegotiating the contract, including the $4 million monthly payment Bally’s agreed to make toward police and fire pensions.
“They have to show this adverse impact,” Conway said. “There’s probably some chance they can show that, but the remedy there is a good faith renegotiation of the $4 million. It’s not stopping construction.”
When the City Council lifted its ban on video gambling terminals last December, Bally’s warned city officials the move would send customers elsewhere and disrupt the cash flow necessary to complete construction.
Bally’s is responsible for $400 million over the next two years to finish construction, and it’s currently losing money on its temporary location at Medinah Temple.
“It’s no secret that they are having some significant financial difficulty,” Conway said. “(Bally’s) slowing construction could certainly be a financing mechanism that they’re employing here.”
By opting to slow construction, Bally’s has put City Council’s video gambling decision back in the spotlight.
Conway was among the alderpeople who defied Mayor Brandon Johnson last December and voted to lift the ban on video gambling terminals. The group argued the move would generate $6.8 million in revenue to help balance the budget while providing a boost to struggling small businesses.
But eight months into 2026, none of that money has materialized. While state officials have approved six video gambling licenses, Chicago officials have yet to issue the necessary city licenses to allow those terminals to be plugged in.
Ald. Jason Ervin (28th Ward) voted against lifting the ban on video gambling terminals.
“We get 22 cents on the dollar from the casino and only 5 cents on the dollar at a video gaming terminal,” Ervin said, referring to the higher tax rates placed on casino machines.
Ervin added that it was unrealistic to expect Chicago establishments to get licenses approved in time to avoid a midyear deficit.
“We knew that there was a long line of people trying to get licensing and how the city of Chicago was going to shoot to the top of the line and get licenses — we knew that this was going to be a fallacy,” Ervin said.
The unrealized revenue from video gambling terminals is part of an $89 million midyear budget shortfall Ervin said alderpeople will need to address “in the next probably 45 days — otherwise we’re gonna end up in the red.”
Ervin said the city shouldn’t include any revenue from video gambling terminals in its upcoming 2027 budget.
“It just doesn’t make sense to include it,” Ervin said. “It’s peanuts. It is not real money. You’re tripping over $100 bills to pick up nickels. It makes no sense to do this.”
