Since May 2022, it has been clear that Bally’s would be the ones to build Chicago’s first full-scale casino – there are doubts, however, about whether the $1.8 billion development can comply with its opening deadline of 9 September 2026, which is now less than six months away.
After Bally’s won the rights to the lone Chicago licence four years ago, it entered into a Host Community Agreement with the city. As part of that agreement, Bally’s was able to open a temporary casino at the Medinah Temple building in River North, which opened on 9 September 2023. This allowed the operator to start generating revenue and taxes while the permanent venue was under construction.
A key question now, though, revolves around the following passage from the HCA:
“Acknowledging that Section 7(l) of the Act controls, Developer agrees that Developer shall not be permitted to conduct Casino Gaming Operations at the Temporary Project for a period of greater than thirty-six (36) months after the Operations Commencement (Temporary Project) unless otherwise approved by the City and the Board.”
The language indicates that unless the city and the Illinois Gaming Board sign off on an extension, Bally’s would be forced to close its temporary casino in September if the permanent venue is not completed by the three-year anniversary, which is rapidly approaching.
Bally’s did not respond to requests for updated comments this week on the timeline.
Extension bill in committee
The operator has never explicitly said that it will not be able to meet the September deadline, but it did release a statement in January acknowledging the introduction of HB 4437, a bill that would extend the temporary licence by up to 18 months. Per the bill, the IGB cannot authorise more than two additional extensions of three-months each.
“[HB 4437] provides operational certainty and allows Bally’s Chicago to remain fully compliant with its Host Community Agreement with the City of Chicago, ensuring uninterrupted service for guests, continued employment for team members, and ongoing economic contributions to the City,” Bally’s said at the time.
The bill was filed on 15 January by Representative Kam Buckner, whose district does not include the permanent site. In the last two months, the bill was referred and then re-referred to the House Rules Committee, where it now sits.
Buckner is a member of the committee, which, as of writing, has no future meetings scheduled. The state’s legislative session is scheduled to adjourn on 31 May. While Buckner was willing to sponsor the legislation, his defence of it was somewhat blunt.
“The whole thing may be in jeopardy, right? It’s fair and healthy to have doubts,” Buckner told the Chicago Sun-Times in January. “But the only way to figure that out is to let the process play out another 12 months. All I’m asking for is to give them the space that they need to, hopefully, make this thing work.”
Construction hiccups, little information
Technically, state law only allows for two-year temporary licences, but Bally’s Chicago already requested and received a 12-month extension to three years in 2023, which is now in jeopardy again. The mayor’s office did not respond to requests for comment by the time of publication, and the IGB said in a statement it is “aware of HB 4437”, and engaging with “relevant stakeholders”.
“Under current Illinois law, Bally’s cannot operate the temporary casino at Medinah Temple beyond September 9, 2026 (36 months after it commenced operations),” confirmed IGB’s Director of Communications Beth Kaufman. “The IGB cannot extend that deadline without a legislative change to the Illinois Gambling Act.”
According to Urbanize Chicago, Bally’s received an interior build-out permit for the project recently, which is slated to boast 3,300 slots, 173 tables, a 500-room hotel, a 3,000-seat theatre and other amenities upon completion. A portal on the city’s website is tracking the build progress, but has not been updated since last August.
So far, the construction process for Bally’s Chicago has been fraught with difficulties. Work has been halted multiple times, such as when demolition debris fell into the nearby Chicago River and when unapproved contractors with alleged Mob ties were photographed at the site. Bally’s also had to significantly alter its design plans after its original design was rejected due to potential impacts on city water lines.
GLPI not concerned with timeline
Outside of Bally’s, the city and the IGB, the fourth stakeholder eager to see the Chicago casino completed is Gaming and Leisure Properties (GLPI). The gaming-focused real estate investment trust has billions of dollars tied to financing agreements with Bally’s.
In July 2024, when Bally’s was facing a significant funding gap, GPLI filled it with a multi-layered agreement worth a total of $1.58 billion. Of that total, $940 million was allocated to Bally’s Chicago construction costs, and GLPI also bought the project’s real estate for $250 million and leased it back to the operator.
Last September, a GLPI construction update said that Bally’s “expects the property to open in the fourth quarter of 2026”. That would insinuate a launch in October or later, past the September temporary licence deadline. When asked about this point in January, GLPI told iGB “the timeline to opening remains consistent with our expectations”.
“The decision as to whether an extension for the temporary facility is granted has no impact on GLPI, other than a successful extension would be in the best interest of our tenant, and we, as a partner, are always hopeful that the best interests of our tenants are served,” said Carlo Santarelli, GLPI’s senior vice president of corporate strategy and investor relations. “From a financial perspective, however, an extension of the temporary licence is not impactful, in any way, to GLPI.”
VGTs encroaching on Bally’s Chicago?
Uncertainty related to the construction process has been coupled this year with the city council’s contentious decision to legalise video gaming terminals within city limits.
Late last year, 30 council members effectively strong-armed the city’s budget process and passed an alternate budget that differed from the one proposed by Mayor Brandon Johnson. The contingency budget earmarked $6.8 million in VGT licensing fees, which assumes that 80% of Chicago’s 3,300 liquor licensees would apply for the machines.
That outcome would significantly impact the future outlook for Bally’s Chicago. VGTs have proliferated in small businesses across the state and dominate gaming revenue and taxes, which is part of the motivation for their legalisation. In 2025, for example, state casinos – including Bally’s temporary venue – generated $430 million in state and local taxes. VGTs, meanwhile, generated $1.1 billion in taxes.
Despite attempts to derail the provision’s implementation, Johnson’s camp appears to be losing ground. According to the Sun-Times, the council’s Licensing Committee denied proposals from six of Johnson’s allies to implement ward-by-ward bans in March.
“This is an economic increase to our deflated economy in Chicago to bring more revenue into our city especially because, me as a border ward – I’m being destroyed by my surrounding suburbs that already have VGTs actively running,” Alderman Anthony Napolitano said, per the outlet.
Bally’s, meanwhile, lobbied against the provision during the budgeting process. Elizabeth Suever, the company’s vice president of government relations, said at the time that incorporating “unregulated, independently managed VGTs as a budget line item” would “result in a loss of substantial new revenue for the City, and will create significant job losses”.
The introduction of VGTs could jeopardise a $4 million annual payment included under the HCA, as well as more than $70 million in revenue, Bally’s said.
Jess Marquez
Jess has covered the global gaming industry since 2022. A native of Reno, Nevada, he’d like to note that it’s Ne-va-da, not Ne-VAH-da.
Original article: https://igamingbusiness.com/casino-games/ballys-chicago-construction-questions-april-2026/
