A Chicago City Council majority is threatening hearings and possible legal action against Bally’s over its decision to slow construction of non-gaming elements of its $1.7 billion River West casino project, questioning whether the move reflects financial pressure rather than concerns over newly authorized video gambling terminals (VGTs).
Bally’s earlier this week announced it would be slowing construction on most non-gaming amenities at its casino complex, escalating its dispute with the city over the potential expansion of VGTs. The company argues that Chicago’s move to allow the devices breaches the 2022 Host Community Agreement it signed with the city, which Bally’s says included a commitment not to expand gaming in the host community.
But the Chicago City Council is also invoking the host agreement. Twenty-eight alderpersons signed a letter Wednesday arguing that Bally’s decision to pause work on the hotel, event center and some restaurants violates the deal with the city, reports Chicago Sun-Times. They called on Mayor Brandon Johnson to enforce the agreement and ensure Bally’s “delivers the complete project it committed to build.”
The council members said the agreement requires completion of the hotel, retail, event and exhibition space, green space, Riverwalk and other components, not only the casino floor. They argued that slowing those elements amounts to a material contractual change requiring council approval.
If Johnson does not act, the alderpersons said they could summon Bally’s executives to a public hearing and potentially pursue legal action.
The dispute follows the City Council’s decision to lift Chicago’s ban on video gambling, part of an alternative 2026 budget that projected $6.8 million in licensing revenue. No video gambling licenses have yet been issued.
Downtown Ald. Brendan Reilly (42nd) questioned Bally’s explanation, pointing to the company’s debt and saying the terminals have not yet affected its business.
“Many of us suspect that this is really a cash flow issue for Bally’s, and they’re trying to turn lemons into lemonade by blaming VGT as the reason they’re slowing down construction,” Reilly said. “They’ve told their own investors that they are heavily leveraged and have over $5 billion in debt, and that encumbrance could have a negative impact on their future operations.”
Ald. Anthony Beale (9th), who has led efforts to legalize video gambling terminals, also questioned whether Bally’s has the cash flow needed to complete the development and said another operator should be considered if the company cannot meet its obligations.
Bally’s said it understands its responsibilities under the host agreement and is prepared to explain the slowdown to the council.
Render of the River West casino project
“We have held up, and will hold up, our end of the bargain,” Bally’s stated. “We look forward to stating our case that VGTs will not benefit the City the way it has been represented, especially if their rollout will cause material detriment to our business.”
Bally’s has warned that video gambling could cost Chicago $74 million in annual revenue and up to 1,050 casino jobs. It has also said legalization could force renegotiation of “critical elements” of its host agreement, eliminate its $4 million annual payment to the city and reduce revenue supporting police and fire pensions. The company has threatened legal action over the authorization of the terminals.
The casino project has faced financial and logistical difficulties since Bally’s was selected in 2022, including an $800 million funding gap, changes to its hotel plans and delays that pushed the expected permanent opening into 2027.
Johnson has opposed video gambling and lobbied alderpersons to repeal its authorization. Ald. Walter R. Burnett (27th), whose ward includes the casino site, said he was frustrated by the slowdown but believed Bally’s was acting within its legal rights.
Original article: https://www.yogonet.com/international/news/2026/08/13/125887-chicago-city-council-challenges-ballys-decision-to-slow-17b-casino-project
