Bally's Pauses Chicago Casino Construction Amid VGT Dispute

Bally’s has paused construction of a hotel, events center, restaurants, and other amenities on the company’s planned Chicago casino. The pause comes amid a dispute over the city's recent move to legalize video gaming terminals (VGTs) as part of the 2026 budget. These machines allow Windy City residents to gamble at convenience stores, bars, and other establishments.

The dispute centers around Bally’s allegation that the legalization of VGTs violates the 2022 agreement with the city to build the permanent casino and amenities. Despite objections from Mayor Brandon Johnson (D), aldermen included the terminals in the budget. Bally’s has responded by pausing construction and hiring a law firm to resolve the dispute.

Bally’s has also announced plans to withhold a $4 million payment to the city next month. The company has stated that the casino itself is still on track to open in early 2027, and construction will ramp up again once the dispute is resolved. The slowdown could impact city revenue, as the property was estimated to provide $200 million in local tax revenue. There are now about 50,000 VGTs at more than 8,700 establishments across Illinois, according to the Illinois Gaming Board (IGB).