Bally’s has paused building of a resort, occasions middle, eating places, and different facilities on the corporate’s deliberate Chicago on line casino after town lately moved ahead with a plan to legalize video gaming terminals (VGTs) as a part of the 2026 finances.
The machines enable Windy City residents to gamble at comfort shops, bars, and different institutions. That has been a bone of rivalry with Bally’s, which is investing $1.7 billion within the on line casino resort.
The firm alleges legalized VGTs violates the 2022 settlement with town to construct the everlasting on line casino and facilities. Aldermen included the terminals within the finances regardless of the objections of Mayor Brandon Johnson (D), who has additionally stated legalizing VGTs violates the settlement. The slowdown in building is now seen as a response to town’s VGT plan.
“Bally’s issued a notification to the Chicago Community Builders Collective that it is resetting the pace of construction of elements of Bally’s Chicago permanent casino,” the corporate stated in a press release.
“The potential for an uncontrolled proliferation of video gambling terminals is in breach of the city’s commitment not to expand gaming in the Host Community Agreement and creates uncertainty that could be harmful for Bally’s Chicago prospects.”
Slowdown Could Impact City Revenue
Despite the slowdown on the resort and different facilities, Bally’s stated the on line casino itself continues to be on monitor to open on time in early 2027. The firm has promised to ramp up building once more as soon as the dispute is resolved.
“We do not take this lightly because of the potential impact on many of the 1,500 union trades people who have been working hard to build Bally’s Chicago,” the corporate stated. “We will continue to assess our options, which we hope will include more productive discussions with the mayor’s office and city council.”
Bally’s has now hired a law firm to assist resolve the dispute, in keeping with the Chicago Tribune. The newspaper additionally reported that along with pausing building, the corporate plans to withhold a $4 million fee to town subsequent month.
The disagreement and pause in building may affect metropolis income within the coming years. Chicago estimates that the property may present $200 million in native tax income, however a delay in opening the resort and different facilities may see that dip significantly.
There’s Around 50,000 VGTs In Illinois
Illinois handed the Video Gaming Act in 2009, permitting native jurisdictions to legalize the video games. Chicago didn’t approve the video games till final fall.
There at the moment are about 50,000 VGTs at greater than 8,700 institutions throughout the state, in keeping with the Illinois Gaming Board (IGB). That complete is greater than every other state within the nation. Casino operators have stated the machines lower into their gaming income.
So far this yr via July, VGTs have generated extra income than the state’s 17 casinos, in keeping with the IGB.
Difficult Environment For Gaming Operators
Beyond the VGT challenge, Illinois has created a tougher atmosphere for gaming operators in recent times. In 2025, the state added a 25-cent tax on sports activities wagers for an operator’s first 20 million bets, which rises to 50 cents per guess past that threshold.
This adopted one other enhance in 2024 that instituted a progressive tax construction on operators as much as 40%. Following the per-wager tax hike, some sportsbooks handed the tax onto prospects through transaction charges and others raised betting minimums.
There have been 28 million fewer bets after the tax went into impact in September in comparison with the identical time the earlier yr. Some lawmakers have now pushed to repeal the per-wager tax.
Meanwhile, town of Chicago instituted a ten.25% tax on sports activities betting operators this yr.
Governor Seeks Higher Tax Rate On Table Games
In 2025, Illinois noticed $1.09 billion in business on line casino gaming income, in keeping with the American Gaming Association. That was a rise from $730.5 million in 2024, boosted by the opening of a brand new on line casino. The state doesn’t have tribal casinos.
The gaming trade faces a graduated wagering tax construction on on line casino slot machines and digital video games, which ranges from 15% to 50%. Table sport income outdoors Chicago is taxed at 15% as much as $25 million after which 20% past that. However, Gov. JB Pritzker (D) has pushed to lift that price as excessive as 50%.
Additionally, casinos additionally pay an admission tax per buyer that’s scaled by complete annual admissions, starting from $2 to $5 per individual, in keeping with the Illinois Department of Revenue.
Critics have argued that the gaming tax and regulation panorama in Illinois discourages operators to construct and put money into the state. That seems to be taking part in out within the Bally’s-VGT dispute.
