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

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

In the Windy City, Bally’s secured a much-needed extension to its temporary licence before the state legislature adjourned 1 June, 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 licencees 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 Wednesday. The meeting adjourned without a resolution after tensions escalated among members, but in the course of discussion Bally’s made a proposal to install 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 licenece, 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 generate 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 and CEO of the Las Vegas Convention and Visitors Authority, told The Athletic that Bally’s “[doesn’t] have the financing” to build out the project. The LVCVA has asked “pretty pointedly” for the operator to present a future plan by August, per the report. Bally’s told the outlet it is “unlikely” that the casino is ready by 2028, and that was reiterated this week.

On Thursday, Bally’s CFO Mira Mircheva and attorney Dan Reaser told the Nevada Gaming Commission that the 2028 deadline applies to the stadium only. Bally’s never committed to opening the hotel and casino portions of the site by then, they said, and it’s likely that only a retail/ entertainment section is completed in that timeframe.

“To make the record clear, the April deadline of 2028 is for the stadium to open and for the baseball season to proceed,” Reaser told commissioners. “The April 2028 timeline is for the retail district, parking garage, utilities, and plaza, but not the towers that come at a later date.”

Bally’s Bronx still ahead

As both of those pressures ramp up, an even bigger project looms in the distance. Bally’s won a coveted downstate New York casino licence last winter and plans to build an integrated resort at a golf course it owns in the Bronx. With a cost of $4 billion, Bally’s Bronx has about the same price tag as both Chicago and Las Vegas combined.

Most of the application materials for Bally’s Bronx are redacted, but one timeline that is publicly available says that construction will begin “approximately 8 to 9 months” after licensure. Licences were awarded in December, meaning the timeline would begin in August or September. Bally’s told iGB in February it has “every motivation to get started as quickly as this fall on our NYC project”.

Perhaps no other gaming company has been as active or as creative in moving money around in recent years than Bally’s. In addition to its three major US projects, the company has also acquired Intralot, Evoke and a majority interest in Star Entertainment since the start of 2025.

The operator finished Q1 with $559 million in cash against long-term net debt of over $4.3 billion as well as $2.2 billion in lease liabilities. Its stock has been boosted up about 50% in the last year as the company accumulates assets but momentum is slowing, with shares down 15% in the last six months.