Bally’s has paid $4 million to Chicago even as a dispute brews over the city’s decision to allow video gambling terminals (VGTs). The casino operator is removing one source of leverage by paying off the debt as it continues to fight the expansion of gambling outside its planned venue.
Bally’s Pays Chicago $4M Despite Ongoing VGT Dispute
The company made two payments of $2 million on September 9 under the Host Community Agreement (HCA) it signed with Chicago in 2022. The annual contribution includes direct and indirect community impact fees Bally’s had previously indicated it could hold off on the money while seeking changes to the deal.
The payment decision comes as the company and city officials are divided over VGTs. Chicago included the machines in its 2026 budget, projecting they will bring in about $6.8 million in additional revenue in the first period. It allows gambling machines in locations including bars and restaurants.
Bally’s noted that the move changes the competitive landscape around the $1.7 billion casino project in River West. The company has attempted to renegotiate its contract and even threatened legal action, as reported by Crain’s Chicago Business.
The row has already delayed construction. Bally’s suspended work on certain non-gaming elements of the development in August. The plans call for a 500-room hotel, capacity for 3,000 in the theater, restaurants, bars, convention facilities and outdoor public spaces.
Bally’s Chicago Project Hit by Layoffs and Construction Changes
The operator says the decision was prompted by its reassessment of the Chicago gambling market, not its wider financial woes. Bally’s posted a second-quarter net loss attributable to shareholders of $146.1 million and has about $5 billion of debt.
The company says about 1,000 workers are still employed in connection with the project. Already, 136 employees have lost their jobs due to construction changes. Bally’s has maintained its pledge to complete the casino, although executives have confirmed only 100 hotel rooms instead of the 500 originally planned.
The latest hearing also provided new information on Bally’s prior interest in the VGT sector. Rick Heidner, owner of Gold Rush Gaming, said Bally’s had been in discussions with his company for months about a possible acquisition or partnership. The negotiations did not lead to an agreement.
The disclosure adds an additional layer to Bally’s current opposition to VGTs in Chicago. A Bally’s executive declined to comment on whether the company would still be interested in acquiring a video gaming business, saying the operator regularly evaluates potential acquisitions and partnerships.
Meanwhile, Chicago’s city administration has begun working on a local permits process for VGT operators. The Illinois Gaming Board has approved 63 applications. Twenty-three operators have applied for city permits, the mayor’s office says.
Bally Chairman Soo Kim and others are scheduled to provide another update on the Chicago project on September 14. The meeting may offer more clarity on whether construction will resume and how the company plans to proceed in the ongoing gambling dispute.