Bally’s Pays Chicago $4 Million as the City Pushes Ahead With Video Gambling Terminals

Bally’s has paid Chicago $4 million even as it fights the city’s move to allow video gambling terminals (VGTs). For PSPs and other high-risk payment providers, the useful part is simple: the operator is still funding its host-community obligations while the commercial terms around its $1.7 billion casino project in River West keep shifting.

1. On September 9, Bally’s made two payments of $2 million under the Host Community Agreement (HCA) it signed with Chicago in 2022. The annual contribution covers direct and indirect community impact fees, which Bally’s had previously said it could withhold while seeking changes to the deal.
2. The dispute centers on Chicago’s decision to include VGTs in its 2026 budget, with the city projecting about $6.8 million in additional revenue in the first period. The machines would be allowed in locations including bars and restaurants, which changes the competitive setup around Bally’s planned casino.
3. Bally’s says the VGT move alters the economics of the River West project, and it has tried to renegotiate its contract and even threatened legal action, according to Crain’s Chicago Business. The row has already affected construction: Bally’s suspended work on certain non-gaming elements in August.
4. The project is supposed to include a 500-room hotel, a theater with capacity for 3,000, restaurants, bars, convention facilities and outdoor public spaces. Bally’s now says only 100 hotel rooms are confirmed, down from the 500 originally planned.
5. The company says the pause is tied to its reassessment of the Chicago gambling market, not its broader balance sheet. Bally’s reported a second-quarter net loss attributable to shareholders of $146.1 million and has about $5 billion of debt. It also says about 1,000 workers are still employed on the project, while 136 employees have already lost their jobs because of the construction changes.

The latest hearing also surfaced Bally’s earlier interest in the VGT business itself. Rick Heidner, owner of Gold Rush Gaming, said Bally’s had been in talks with his company for months about a possible acquisition or partnership, but no deal was reached. At the same time, Chicago’s city administration has started a local permits process for VGT operators: the Illinois Gaming Board has approved 63 applications, and 23 operators have applied for city permits, according to the mayor’s office.