Chicago City Council Demands Bally’s Resume Full Casino Construction
Twenty-eight alderpersons urge Mayor Johnson to enforce host agreement after operator pauses work on non-gaming facilities.
A majority of Chicago’s City Council is demanding that Bally’s resume full construction on its $1.7bn casino project, after the operator paused development on several non-gaming components.
Twenty-eight alderpersons signed a letter on Wednesday calling on Mayor Brandon Johnson to enforce the city’s host community agreement with Bally’s. The move follows the company's announcement on Sunday that it was “resetting the pace of construction” on the River West development's hotel, event centre, and dining venues, while continuing work on the main casino floor ahead of a planned opening in early 2027.
The alderpersons noted that host agreement compliance depends on delivering the entire master plan rather than just the gaming space. “Final completion … expressly depends upon substantial completion of the hotel, retail, event space, exhibition space, green space, Riverwalk and other components — not merely the gaming floor,” the signatories wrote, threatening public hearings and potential legal action if the agreement is not enforced.
Council Questions Financial Position
Bally’s attributed the construction slowdown to Chicago’s decision to legalise video gaming terminals (VGTs), arguing the move violates its host agreement and threatens future venue revenue. However, council members pointed out that no VGT licences have yet been issued in the city.
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, said Ald. Brendan Reilly.
Ald. Anthony Beale added: We believe they don’t have the cash flow, and they’re blaming VGTs that are not even operational in the city of Chicago.
According to SEC filings, Bally’s secured a conditional waiver on a leverage covenant from lenders in May and amended its credit agreement with Deutsche Bank on 29 July. Under the waiver, the operator must maintain at least $325m in liquidity at the end of the second and third quarters of 2026. Bally’s has not stated that financial constraints prompted the construction adjustment.
VGT Dispute Escalates
The council's decision to legalise VGTs was passed as part of the city's $16.6bn budget, with officials projecting $6.8m in licensing revenue. Mayor Johnson opposed the measure, warning it could cannibalise higher-taxed casino slot revenue and breach terms established with Bally’s.
Bally’s previously warned that VGT expansion could reduce municipal revenue by $74m annually and eliminate up to 1,050 casino jobs, prompting the operator to retain legal representation in June to explore its options.
Responding to the criticism, Bally’s reiterated its commitment to the development this week: “We have held up, and will hold up, our end of the bargain.”
Ald. Walter Burnett, whose ward includes the development, defended the operator's stance.
If you assume that your revenue is going to go down to nothing, you want to reevaluate the cost before you have to commit everything to it, Burnett said.
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