Bally's Chicago Pays City $4M Amid Ongoing VGT Dispute
Bally's Corporation has made two $2 million payments to the City of Chicago under its Host Community Agreement, even as the operator continues to fight the city's rollout of video gambling terminals (VGTs) outside its $1.7 billion River West casino project.
The company made the two payments on September 9, honoring the annual community-impact contribution required under the 2022 agreement, even though Bally's had previously signalled it might withhold the money while pushing for changes to the deal.
City aldermen pressed Bally's executives at a hearing this month over the company's decision to pause construction on non-gaming portions of the resort, a dispute tied directly to Chicago's 2026 budget, which authorized VGTs in bars, restaurants and convenience stores and projects roughly $6.8 million in additional city revenue from the machines.
The Illinois Gaming Board has approved 63 VGT operator applications so far, and 23 operators have applied for the required city permits, according to the mayor's office.
Layoffs And Scaled-Back Build
Bally's says roughly 1,000 workers remain on the project, but 136 employees have already lost their jobs due to construction changes, and executives have confirmed the hotel will open with 100 rooms rather than the 500 originally planned.
The company maintains the slowdown reflects a reassessment of the Chicago gambling market rather than its broader financial position, though it posted a second-quarter net loss of $146.1 million and carries about $5 billion in debt.
A separate hearing also disclosed that Bally's had held months of talks with Gold Rush Gaming owner Rick Heidner about a possible acquisition or partnership in the VGT sector, talks that did not lead to an agreement.
Bally's Chairman Soo Kim is scheduled to give a further update on the project on September 14.
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Wider Fallout In A $5 Billion Debt Load
The dispute over VGTs is playing out against the backdrop of Bally's broader balance-sheet pressure, with the operator carrying roughly $5 billion in total debt across its US and international casino portfolio.
City officials have continued processing VGT applications regardless of the standoff, with Chicago's permitting process for individual bar and restaurant locations running in parallel to the ongoing hearings, meaning the machines Bally's opposes could be live in the city well before its own casino resort is complete.
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