Bally’s Faces Setbacks in Chicago as Video Gaming Terminal Debate Intensifies
Bally’s Chicago Casino Project and Its Challenges
Bally’s, a leading global entertainment company with millions of users across both digital and traditional casino platforms, has been developing a $2 billion casino in Chicago’s River West neighborhood. The venue is projected to open its doors in September 2026. However, Bally’s has expressed concerns that legalizing video gaming terminals (VGTs) could lead to reduced revenue and job cuts at this new casino. These concerns were shared with members of the Chicago City Council recently.
City Council’s Budget Proposal and Bally’s Response
A group of aldermen proposed an alternative budget that differs from the original plan set forth by Mayor Brandon Johnson. This alternative budget, approved by the Finance Committee with a 22-13 vote, includes anticipated revenue of $6.8 million from licensing fees associated with legalizing VGTs. If enacted, this would become the largest state tax revenue source from gaming in Chicago, where VGTs are currently prohibited by city ordinance.
Elizabeth Sueve, vice president for government relations at Bally’s, argued that including revenue from unregulated and independently operated VGTs in the budget would cause the city to lose substantial new income and result in significant job reductions at the Bally’s Chicago casino. Sueve also pointed out that even if the proposal passes, it would not generate any revenue for the city in the 2026 fiscal year.
Potential Financial Impact on Bally’s Support to Chicago
Mayor Johnson opposes legalizing VGTs, citing doubts about their revenue potential. Nevertheless, if the city moves forward with legalization, Bally’s might reconsider its Host Community Agreement and halt its current annual contributions of $4 million to the city.
Alderman Anthony Beale highlighted this risk while presenting his revenue estimates when his VGT ordinance was approved by the committee in September. One driving factor behind the VGT legalization push is Bally’s underwhelming tax contributions from its temporary River North casino. Despite the city budgeting $35 million annually for 2024 and 2025, Bally’s only generated $16.1 million last year and $14.4 million in the first 11 months of 2025.
Beale focused his defense on the growing prevalence of about 3,000 illegal sweepstakes machines across Chicago, which contribute no revenue to the city.
Wider Casino Industry Context and Gaming Tax Pressures
This debate arises as Bally’s has recently secured a conditional license to construct a $4 billion casino in the Bronx, involving significant licensing fees payable both to New York regulators and the Trump Organization due to a golf course lease agreement.
Meanwhile, gaming tax rates in Chicago face increasing pressure. Both the mayor and City Council have proposed a new 10.25% tax on sports betting revenue generated in the city. Combined with existing state and county taxes, this new tax could push total rates above 30%, creating additional financial challenges for major mobile betting operators already handling pay-per-wager surcharges.
