Bally's Chicago casino project, initially set for a grand debut in 2026, is now mired in delays and regulatory hurdles. As the deadline approaches, concerns about compliance with its Host Community Agreement and legislative support for extensions grow. The project's future hangs in the balance, with potential economic impacts for the city and stakeholders involved.
Bally's Chicago casino was anticipated to be a landmark project for the city, but its future is increasingly clouded with uncertainty as the September 9, 2026, opening deadline approaches. Initially announced in May 2022, the $1.8 billion development faces significant challenges that raise questions about its timely completion.
Four years ago, Bally’s secured the sole license to build a full-scale casino in Chicago and subsequently entered into a Host Community Agreement (HCA) with the city. This allowed the company to launch a temporary casino at the Medinah Temple in River North, which commenced operations on September 9, 2023. This temporary venue was designed to generate revenue and taxes while the permanent facility is under construction.
However, a critical aspect of the HCA stipulates that Bally’s cannot operate the temporary casino for more than 36 months without approval from both the city and the Illinois Gaming Board. As the three-year anniversary nears, concerns are mounting that Bally’s may be forced to close its temporary casino if the permanent venue does not meet the deadline.
Bally's has not provided clarity on its ability to meet the September deadline, though it acknowledged the introduction of HB 4437 in January, which seeks to extend the temporary license by up to 18 months.
While Bally’s has not explicitly stated it will miss the deadline, the introduction of HB 4437 suggests that the company is preparing for potential delays. This bill, filed by Representative Kam Buckner, aims to extend the temporary license but currently sits in the House Rules Committee with no scheduled meetings. Buckner, who represents a different district, has expressed candid concerns about the project’s future.
He emphasized, “The whole thing may be in jeopardy, right? It’s fair and healthy to have doubts. But the only way to figure that out is to let the process play out another 12 months.” This highlights the precarious nature of the timeline as the legislative session is set to adjourn soon.
State law permits only two-year temporary licenses, and Bally's has already received one extension to three years. However, the mayor's office has not responded to inquiries regarding ongoing construction updates, and the Illinois Gaming Board confirmed that without legislative change, Bally's cannot extend its temporary operations beyond the September 2026 deadline.
Recent reports indicate that Bally's has obtained a permit for interior build-out, with plans for a venue featuring 3,300 slots, 173 gaming tables, a 500-room hotel, and a 3,000-seat theater. Yet, construction has faced several setbacks, including halted work due to safety concerns and design modifications mandated by the city.
Gaming and Leisure Properties (GLPI), a key financial partner of Bally's, has billions invested in the project and is closely monitoring its progress. In July 2024, GLPI stepped in to bridge a funding gap for Bally's with a substantial agreement. GLPI has indicated that the overall timeline aligns with their expectations, even as the deadline for the temporary license looms.
According to Carlo Santarelli, GLPI’s senior vice president, while an extension for the temporary facility would benefit Bally's, it would not significantly impact GLPI’s financial interests. Their focus appears to be ensuring that the project ultimately succeeds.
Adding to the uncertainty, the Chicago City Council recently legalized video gaming terminals (VGTs), which could pose a significant challenge for Bally's Chicago. The council's decision reflects a growing trend to capitalize on gaming revenue, which could siphon funds from the future casino operations.
With a projected $6.8 million in licensing fees anticipated from VGTs, concerns about competition are rising. In 2025, VGTs generated over $1.1 billion in taxes, compared to the $430 million from state casinos, raising alarms for Bally's about its potential revenue stream.
Despite lobbying efforts against the VGT legalization, Bally's faces an uphill battle as the city council appears to be leaning toward embracing this new revenue source. Alderman Anthony Napolitano has voiced support for VGTs, citing economic pressures faced by local businesses.
As the situation evolves, Bally's must navigate a complex landscape of regulatory hurdles, construction challenges, and competitive pressures. The stakes are high, not just for the casino but for the broader economic health of Chicago.
Jess Marquez has been reporting on the global gaming industry since 2022. A native of Reno, Nevada, he emphasizes the correct pronunciation of his home state.
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