Bally's has suspended construction on the hotel and dining facilities of its $1.7bn River West development in Chicago. The pause stems from a disagreement regarding the city's recent expansion of video gaming terminals.
Work on the core casino facility continues as scheduled, with the company maintaining a 2027 opening target. However, the 500-room hotel tower, event spaces, and the food hall remain on hold pending clarity on local gambling regulations. The construction slowdown directly impacts approximately 1,500 union workers assigned to the site.
Dispute Over Gaming Policy
The conflict centers on Chicago's decision to broaden access to video gaming terminals, which are currently prevalent in local bars and restaurants. Bally's asserts that this expansion violates the terms of its 2022 agreement with the city, which the company states included a commitment not to increase competing gaming options.
Bally's warns that widespread terminal availability may divert potential visitors before they reach the casino floor, thereby affecting projected revenues. In response to the policy shift, the company is reviewing its financial obligations and may withhold the $4m annual payment required under its development contract.
Video gaming machines currently generate higher net income than traditional casinos in Illinois, contributing significant tax revenue. Chicago officials view the expansion as a necessary revenue stream to address municipal budget deficits. The River West project was originally projected to deliver $200m in annual tax revenue for the city.