Bally’s feeling the heat in Chicago, Las Vegas as New York construction looms

There has been no rest for Bally’s Corp through the dog days of summer as it faces pressure on its Chicago and Las Vegas projects and looming timelines for its New York resort.

In the Windy City, before the state legislature adjourned on 1 June, Bally’s secured a much-needed extension to its temporary licence , which was a huge sigh of relief as construction continues on its $1.8 billion permanent casino. However, a new threat has emerged in the form of video gaming within city limits.

It was a tenuous budget process for Chicago Mayor Brandon Johnson late last year, and his version was eventually overruled by an alternative budget from the city council that lifted the city’s ban on VGTs. The approved budget earmarked $6.8 million in VGT licensing revenue, which assumed that approximately 80% of the 3,300 eligible liquor licensees would apply. According to the Chicago Sun-Times , nearly 300 venues have already applied to offer the machines.

Johnson and his fellow officials are still fighting over the issue, and a contentious city council committee meeting was held on the subject on Wednesday. The meeting adjourned without a resolution after tensions escalated among members , but in the course of discussion Bally’s made a proposal to instal slot lounges at O’Hare and Midway airports, which the operator says would cover the $6.8 million budgeted for VGT licensing.

“We believe one lounge can generate approximately $5 million in actual gaming and admission taxes, which go directly to the city,” asserted Christopher Jewett, Bally’s senior vice president of corporate development, per the Sun-Times. “This alone can replace the revenue in question.”

VGTs represent huge competition

Bally’s has warned that if the VGT ban isn’t reinstated, its financial impact could be significant. The company has estimated that city-wide VGTs would slash nearly $75 million in yearly revenue and cut about 1,000 jobs from its temporary and permanent casinos. In order to win the lone Chicago licence, Bally’s signed a host community agreement with several stipulations, including a yearly $4 million payment to the city. The legalisation of VGTs would likely void many of those agreements and could result in litigation.

Despite the risks, the potential revenue generating potential for Chicago VGTs is immense. To this point in 2026, Illinois casinos have generated $889.5 million in total adjusted gross receipts and $53.6 million in local taxes, according to the Illinois Gaming Board . By contrast, VGTs have generated $1.4 billion in net terminal income and $68.5 million in local taxes. More than 1,100 municipalities across the state have adopted VGTs, and, until this budget cycle, Chicago had been the most notable holdout.

“Had we known that, within just a few years, this body would reverse course and allow an alternative form of gambling that breaches the agreement, we would never agree to the numerous commitments, all of which we’ve held up,” Jewett told the council this week, per the Sun-Times.

Only two US airports feature slot machines, both of which are in Nevada – Harry Reid International Airport in Las Vegas and Reno-Tahoe International Airport in Reno. Reid features more than 1,000 machines that generate nearly $40 million in annual revenue for the airport, while Reno-Tahoe’s generates about $1 million per year.

Trouble in Las Vegas?

Speaking of Las Vegas, Bally’s is feeling the heat on its $1.2 billion mixed-use Strip development as construction continues on the Athletics’ neighbouring MLB stadium, which is slated to open in spring 2028.

The ballpark’s timeline appears to be holding up well, but there are serious questions as to how Bally’s portion of the shared site will look. There is a sense that the team might pivot and build some of its own infrastructure if Bally’s cannot develop its project fast enough. That could add $100 million to its construction costs, according to an Athletic report earlier this month .

Steve Hill, president an