Bally's slows parts of Chicago casino project amid dispute over video gaming terminals, ald. divided

CHICAGO (WLS) -- Bally's Chicago is pausing construction on several parts of its permanent casino as a political fight intensifies over the future of video gaming terminals in the city.

The company says the growing push for hundreds of new terminals could drain revenue from the casino; it's a concern that has divided members of the City Council.

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At issue is a decision made during last year's budget negotiations to authorize several hundred video gaming terminals, or VGTs, as a way to help close the city's budget gap. Bally's is now pushing back, hoping to get the city to reconsider, prompting frustration from some aldermen who argue the casino operator is overstating the threat.

In a notice to the Chicago Community Builders Collective, which oversees construction, Bally's said it is "resetting the pace of construction" on parts of the project, including the hotel, restaurant and music venue. The company cited concerns that widespread VGTs could siphon gambling dollars away from the casino.

Several aldermen dispute that claim. Ald. Ray Lopez of the 15th Ward said casino patrons and VGT users are not the same.

"We know that individuals that go to casinos are not the ones who are hanging out at the local bar or in your local restaurant, throwing a few bucks into a video gaming terminal while sitting there," Lopez said.

Although the state has approved more than 200 VGT licenses in Chicago, the city has not issued any permits. Ald. Anthony Beale of the 9th Ward argued that the focus on VGTs ignores a larger problem.

"We don't have one VGT machine operating in the city of Chicago, but we're allowing 7,000 illegal sweepstakes machines to operate, and they haven't said a word about those machines operating every single day," Beale said. "And some of them are right across the street from where Bally's is building their new casino."

According to the Illinois Gaming Board, video gaming terminals generated nearly $514 million in tax revenue for the state from January through June of this year - almost three times the $177 million produced by casinos during the same period.

Ald. Walter "Red" Burnett, whose 27th Ward includes the Bally's site, said the company's concerns reflect trends seen elsewhere in Illinois.

"What we've seen across the state is that it's 30% reduction in casino revenues wherever VGTs are issued in municipalities that have casinos, and so I understand where they're coming from," Burnett said.

The city is counting on casino revenue to help fund pensions, but revenue from the temporary casino in River North has so far fallen short of projections. Burnett said the construction slowdown may be an opportunity to rethink the city's approach to VGTs.

"This is a wake-up call that we need to think about these things more prudently and more strategically before trying to open up a broader market for something that could be risky," he said.

Bally's said the casino itself remains on track to open in early 2027. Burnett said the company wants to reevaluate other elements, such as the hotel and restaurant, in case VGT expansion reduces casino traffic. The mayor's office declined to comment.