Bally's is pulling back on construction at its permanent River West casino complex in Chicago as a dispute with city officials over video gambling terminals escalates.
The company notified the Chicago Community Builders Collective over the weekend that it would reset the pace of work on several parts of the $1.7-billion development, including the hotel tower, an event center and multiple planned restaurants.
Key Takeaways
- Bally's is slowing work on parts of its $1.7bn Chicago casino project amid a city gaming dispute.
- The dispute centers on Chicago allowing video gambling terminals despite Bally's 2022 host agreement with the city.
- Bally's still targets an early 2027 casino opening but may withhold its $4-million September city payment.
The move stems from Chicago's 2026 city budget, which lifted a longstanding ban on video gambling terminals in bars, restaurants, truck stops, and fraternal organizations across the city. Bally's argues that the decision breaches its 2022 host community agreement, in which the city committed not to expand gaming options while Bally's built its permanent casino.
“Bally’s issued a notification to the Chicago Community Builders Collective (CCBC) that it is resetting the pace of construction of elements of Bally’s Chicago permanent casino,” the company said in a statement.
The company said the potential spread of these terminals creates uncertainty that could hurt its business prospects in Chicago.
Despite the construction slowdown, Bally's says the casino itself remains on track to open in early 2027 and that it intends to honor its commitments under the host agreement. The company acknowledged the changes would affect many of the roughly 1,500 union tradespeople working on the project, though it did not specify how many jobs would be impacted.
Bally's has also brought on the law firm of former Chicago mayor Lori Lightfoot to assist with the dispute. It is considering withholding a $4-million annual payment owed to the city in September, according to the Chicago Tribune.
The hotel tower reached its full height in May, and Bally's has already spent hundreds of millions of dollars on the project.
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Louisiana's casino shift pays off for Bally’s Baton Rouge
While Chicago's casino market navigates regulatory friction, Louisiana's decision to let riverboat casinos move onto land has produced a notably different outcome in Baton Rouge, where two properties have posted strong revenue growth since relocating ashore.
Bally's Baton Rouge Casino and Hotel, formerly known as the Belle of Baton Rouge, has seen monthly gaming revenue rise from under $1 million to as much as $5 million following a $160-million landside redevelopment. Nearby, The Queen Baton Rouge has recorded a similar increase since making its own move to land in 2023.
Together, the two casinos have helped push Baton Rouge's total gaming market from around $65 million to $80 million annually. This simultaneously expanded the city's share of Louisiana's overall casino business. The growth has also translated into nearly 500 new jobs across the two properties.
Beyond the numbers, the shift has reshaped downtown Baton Rouge as an entertainment destination, drawing a broader range of visitors that now includes convention attendees, weekend travelers, and LSU football fans alongside longtime local patrons. The transformation reflects a statewide trend of aging riverboat casinos being converted into larger, modernized entertainment complexes now that Louisiana permits land-based operations.
