# Bally’s Chicago casino construction dispute

> Live situation record from CLSTR: https://clstr.news/situations/ballys-chicago-casino-construction-dispute
> Updated: 2026-08-12T07:59:22.000Z. Sources: 7. Developments: 2.

Bally’s Corporation has slowed construction on its $1.7 billion to $2 billion permanent casino resort in Chicago’s River West neighborhood. The company is “resetting the pace” by pausing work on non-gaming amenities, including a 34-story hotel tower, an event center, and restaurants, though it maintains the casino floor remains on track for an early 2027 opening.

The slowdown is driven by a dispute over a Chicago City Council proposal to authorize video gaming terminals (VGTs) in bars, restaurants, and truck stops. Bally’s contends that allowing these terminals would violate the Host Community Agreement signed in June 2022, which they claim prohibits additional casino-style gambling within city limits. The company has warned that this policy change could cost the city up to $74 million in annual revenue and put approximately 1,050 to 1,500 union jobs at risk.

In response, twenty-eight Chicago alderpersons signed a letter urging Mayor Brandon Johnson’s administration to enforce the contract. The council members argue that the existing agreement covers the entire planned complex rather than just the gaming floor, and that delaying amenities like the hotel and retail spaces constitutes a material change. The City Council plans to hold a public hearing regarding the construction slowdown, project financing, and compliance with city agreements.

## Timeline

### 2026-08-12: Bally's pauses non-gaming construction at Chicago casino project

Bally's has paused construction on the hotel and event center portions of its Chicago casino project, citing the city's legalization of video gaming terminals as a threat to projected revenues.

4 sources. https://clstr.news/cluster/ballys-slows-chicago-casino-construction-amid-video-gambling-dispute

### 2026-08-09: Bally's halts parts of Chicago casino construction amid gaming dispute

Bally's has paused construction on certain parts of its $1.7 billion Chicago casino resort amid a dispute with the city over a proposal to legalize video gaming terminals in local bars and restaurants.

3 sources. https://clstr.news/cluster/ballys-halts-parts-of-chicago-casino-construction-amid-gaming-dispute

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Cite as: Bally’s Chicago casino construction dispute. CLSTR, https://clstr.news/situations/ballys-chicago-casino-construction-dispute
