Bally’s Chicago is resetting the pace of work on the 34-story hotel, event center and some restaurants at its $1.7 billion River West casino complex.
The company says Chicago’s legalization of video gambling terminals breaches its Host Community Agreement and creates uncertainty for the casino’s prospects.
Bally’s still targets an early 2027 opening for the permanent casino, but it has not provided a restart date for the affected nongaming amenities.
Bally’s Chicago is pausing or slowing construction on major nongaming components of its $1.7 billion permanent casino complex as the company presses Chicago officials over the city’s decision to allow video gambling terminals at bars, restaurants and other licensed establishments.
The company notified the Chicago Community Builders Collective, the general contracting partnership overseeing the project, on Aug. 8 that it was slowing the pace of construction on portions of the River West development. The affected work includes the 34-story, 500-room hotel, event center and several planned restaurants, according to the Chicago Tribune.
Bally’s said the permanent casino remains on target to open in early 2027. The company did not provide a timeline for resuming the paused work.
The construction reset comes as the project moves from structural work into interior buildout. Bally’s marked the topping-out milestone in July after placing the final structural beam at the permanent casino site, according to the company’s construction update.
The 30-acre development is planned for the former Chicago Tribune Freedom Center site along the Chicago River. In addition to the hotel and casino, the project is designed to include a 3,000-seat theater and event center, multiple food and beverage venues, parking, public outdoor space and a riverfront extension.
The Chicago Community Builders Collective includes Gilbane Building Co. and several Chicago-area minority- and women-owned construction firms.
The pause could affect approximately 1,500 union tradespeople affiliated with the project, although Bally’s has not specified how many workers or subcontractors will be directly affected. WTTW reported that Bally’s acknowledged the potential impact on the project workforce.
Chicago’s 2026 budget lifted the city’s longstanding prohibition on video gambling terminals. Under the city’s current licensing guidance, video gaming is legal in Chicago, and eligible locations can apply for licenses for up to six machines per site. Applicants must first obtain approval from the Illinois Gaming Board, according to the City of Chicago.
The City Council included an estimated $6.8 million in video gambling revenue in the 2026 budget, according to the Chicago Sun-Times. Mayor Brandon Johnson opposed the expansion, while Bally’s has argued that the terminals would compete with its casino before the permanent facility opens.
Bally’s says the potential for widespread video gambling breaches the city’s commitment under the 2022 Host Community Agreement not to expand gaming in Chicago. The agreement was part of the city’s selection of Bally’s to operate Chicago’s first casino.
The contract’s interpretation remains contested. Neither the city nor Bally’s has publicly resolved how those provisions apply to the current dispute.
Bally’s Chicago Hotel and Casino rising along the Chicago River in a May 2026 image: Image: Shutterstock
The construction reset, Bally's stated, does not change the target opening for the permanent Chicago casino. The initial phase is expected to prioritize the gaming floor and other requirements needed to begin operations, while the hotel, event center, restaurants and other destination features remain subject to the dispute and the project’s revised sequencing.
Bally’s said in a May 2026 statement that the finished project will feature:
3,400 slot machines
173 table games
10 food and beverage venues in partnership with Levy Hospitality
500-room hotel tower with rooftop bar
3,000-seat entertainment theater and event center
3,300 parking spaces
Public outdoor spaces and riverfront "activation"
Bally’s currently operates a temporary casino at Medinah Temple in River North. State lawmakers have proposed extending that facility’s authorization while construction of the permanent casino continues, adding another moving part to the project’s schedule.
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