Bally's Corp faces regulatory challenges in Chicago regarding video gaming terminals while construction proceeds on its permanent casino. The company recently secured a temporary license extension and proposed a new revenue solution to city officials.
License Extension and Regulatory Changes
On 1 June, the state legislature adjourned, granting Bally's a needed extension for its temporary license. Construction on the $1.8 billion permanent facility continues. However, the city council recently overruled Mayor Brandon Johnson's budget, lifting the ban on video gaming terminals (VGTs) within city limits.
The approved budget allocates $6.8 million in VGT licensing revenue, based on an estimate that 80% of the 3,300 eligible liquor licensees will apply. Nearly 300 venues have already applied to offer the machines.
During a contentious city council committee meeting on Wednesday, Bally's suggested installing slot lounges at O’Hare and Midway airports. Christopher Jewett, Bally's senior vice president of corporate development, stated that a single lounge could generate approximately $5 million in gaming and admission taxes. He noted this amount could replace the revenue currently budgeted for VGT licensing.
Bally's warns that widespread VGT legalization could reduce annual revenue by nearly $75 million and eliminate 1,000 jobs. The company previously signed a host community agreement, including a $4 million annual payment, which may be voided by the new regulations. Data from the Illinois Gaming Board indicates that while casinos generated $889.5 million in adjusted gross receipts in 2026, VGTs produced $1.4 billion in net terminal income.
More than 1,100 municipalities across Illinois have adopted VGTs. Chicago remained a notable exception until the current budget cycle.