Chicago City Council Calls Bally’s Bluff, Demands Resort Construction Resume

In what’s seemingly turning into a game of heads-up poker, the Chicago City Council is calling Bally’s Corporation’s bluff after the casino developer stalled construction on its $1.7 billion development in the Windy City’s River West neighborhood. The local government has responded by demanding that Bally’s immediately restart work or risk legal consequences.

On Sunday (Aug. 9), Bally’s Corporation notified the Chicago Community Builders Collective, the general contractor that’s building Bally’s Chicago, that it was pausing construction on all non-gaming amenities.

The casino company said the decision was made in response to the Chicago City Council authorizing slot-like video gaming terminals (VGTs), which Bally’s claims violates its gaming exclusivity clause in its Host Community Agreement.

A majority of the Chicago City Council responded by writing a letter to Bally’s demanding that the company resume all construction activities on the resort.

“Chicago did not enter into an agreement for a casino floor alone. It entered into an agreement for the complete development Bally’s promised to build. The Council expects Bally’s to deliver that project and expects the administration to enforce that commitment,” a Council letter signed by 27 of the 50 aldermen read.

The current Chicago City Council consists of 48 Democrats and two independents. The Council hasn’t included a Republican since 2011.

Bally’s work stoppage put on hold everything from the 34-story, 500-room hotel and 3,000-seat theater to the public greenspace along the Chicago Riverwalk.

Aldermen’s Demands

The majority of the council who endorsed the Bally’s letter say the company must uphold the Host Community Agreement. The legal contract between the parties stipulates the terms of the project, including minimum specifics of the resort, along with annual fees and payments, revenue sharing, and community benefits.

“Continuing construction of the casino floor while slowing the hotel and other non-gaming portions does not eliminate those obligations. The agreement specifically provides that the deletion of a Component is a Material Change, and Material Changes require City approval,” the aldermen said.

“Final Completion also expressly depends upon substantial completion of the hotel, restaurants, retail, event space, exhibition space, greenspace, Riverwalk, and other components—not merely opening the gaming floor,” Council said.  

Bally’s Response

Bally’s says Chicago isn’t upholding its end of the Host Community Agreement by allowing gambling machines in restaurants and bars, social clubs, and truck stops.

We are looking forward to appearing before the City Council to speak to why we are resetting the construction schedule. We understand and embrace our obligations under the Host Community Agreement for jobs and capital investment. We have held up, and will hold up, our end of the bargain.”

Bally's Chicago

Chicago approved VGTs last fall and included forecasted revenue from the machines in the city’s budget, despite opposition from Mayor Brandon Johnson.

“The concerns that Bally’s has were the concerns that I had, and I expressed that to members of City Council,” Johnson said. “Quite frankly, this was expected.”

The City Council is expected to soon schedule a hearing with Bally’s to discuss the situation.