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Bally’s Chicago has paused construction on its new hotel and other amenities amid its dispute with city officials over video gambling terminals (VGTs). The casino claims that VGTs violate its agreement with the city and will hurt Bally’s ability to profit in the Windy City.
Bally’s Chicago Casino Complex
Bally’s Chicago opened a temporary location in the Medinah Temple in September 2023. The permanent location in River West was supposed to open next year. However, the casino has stopped construction on the new casino complex over the city’s approval of VGTs.
The $1.7 billion casino complex is supposed to include nearly 2,800 slots and other casino games, as well as a hotel and entertainment venues. Assuming its initial return met expectations, Bally’s planned to expand its gaming, hotel, and entertainment options.
Initial returns for Bally’s Chicago failed to meet projections, though, and the casino’s move to its permanent location could be delayed.
Why Did Bally’s Chicago Stop Construction?
Bally’s has stopped construction of the non-gambling elements of its new casino over VGTs.
Chicago previously banned VGTs. The city’s 2026 budget plan, though, lifted the ban in hopes of generating over $6 million in new revenue through licensing VGTs.
Not everyone is a fan of the lifted ban. Bally’s claims VGTs violate its agreement with the city, which granted the casino a monopoly on virtual slot machines. In addition to stopping construction on the non-gaming elements of its casino complex, Bally’s also threatened to stop paying its $4 million annual licensing payments.
What Are VGTs?
Video gaming terminals, or VGTs, are electronic gambling games that can include table games, video lottery games, and video slots. Chicago city officials approved the legalization of VGTs in convenience stores and bars as part of its 2026 budget plan.
City Officials Demand Bally’s Resumes Construction
Bally’s notified Chicago city officials on August 9th of its plans to stop construction on non-gaming elements of its new casino complex. Officials from the Chicago City Council sent Bally’s a letter demanding the casino resume construction on its non-gaming elements.
Some critics have also claimed that Bally’s is using VGTs as an excuse to cover for the fact that the casino can no longer afford its new complex.
Bally’s responded by reiterating its stance that Chicago failed to uphold its end of the agreement by allowing VGTs. A hearing between Bally’s and city officials to resolve the issue is expected sooner rather than later.
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