TLDR
- Twenty-eight Chicago alderpersons sent a letter demanding Bally’s resume full construction on its casino development.
- Bally’s paused work on the hotel, event center and some restaurants at the River West site.
- The company blames the pause on the city’s decision to legalize video gaming terminals.
- Some council members say the slowdown may be tied to Bally’s cash flow instead.
- The casino floor construction is continuing, with the permanent property still set to open in early 2027.
Chicago’s City Council is pushing back against Bally’s Corporation after the company slowed construction on parts of its casino project. Twenty-eight alderpersons signed a letter this week asking Mayor Brandon Johnson to enforce the city’s agreement with the company.
The letter follows an announcement from Bally’s on Sunday. The company said it was “resetting the pace of construction” on non-gaming parts of its River West development.
Those parts include a planned hotel, an event center and several restaurants. The casino floor itself is not affected. Bally’s says the permanent property is still expected to open in early 2027.
Why Bally’s Says It Slowed Down
Bally’s has pointed to Chicago’s decision to legalize video gaming terminals as the reason for the pause. The company argues that allowing these terminals in other locations across the city could pull revenue away from its casino.
Bally’s has said the terminal legalization conflicts with its host community agreement with the city. The company has warned the change could cost Chicago as much as $74 million in yearly revenue. It also says up to 1,050 casino jobs could be at risk.
In June, Bally’s hired the law firm of former Mayor Lori Lightfoot as it weighed legal action over the terminal decision.
Council Members Question the Reasoning
Not everyone on the council accepts that explanation. Alderman Brendan Reilly pointed out that Chicago has not yet issued a single terminal license. That means no new machines are currently running in the city.
Reilly said he suspects the real issue is a cash flow problem at Bally’s. He said the company may be using the terminal dispute to explain a slowdown that has other causes.
Alderman Anthony Beale, who has supported legalizing the terminals, made a similar point. He said the terminals cannot be blamed for a construction pause when none are operating yet.
The alderpersons who signed the letter argue that Bally’s cannot separate the casino floor from the rest of the project. They say the host agreement requires the hotel, retail space, event space and other features to be completed together.
The group has threatened to hold a public hearing on the matter. They also said they could pursue legal action if the city does not enforce the agreement.
Bally’s has faced other financial pressures this year. The company has reported an $800 million funding gap on the Chicago project. It has also made changes to its hotel plans.
According to SEC filings, Bally’s amended its credit agreement with Deutsche Bank in late July. That came after the company secured a waiver on a leverage requirement from lenders back in May.
Under the waiver terms, Bally’s must hold at least $325 million in liquidity at the end of the second and third quarters of 2026.
Bally’s has not confirmed that financial pressure played a role in the Chicago slowdown. The company said this week that it remains committed to the project.
Alderman Walter Burnett, whose ward includes the casino site, has taken a different view than his colleagues. He said Bally’s appears to be acting within its rights under the agreement.
Mayor Johnson has opposed the terminal legalization from the start. He has said slot machine revenue is taxed at a far higher rate than the terminals would be.
As of this week, construction on the casino floor continues on schedule. The dispute over the other building components remains unresolved.
