Bally’s Corporation is reevaluating its strategy in Chicago following the city’s recent decision to legalize video gaming terminals (VGTs) as part of the 2026 budget. This development could significantly impact the financial outlook of Bally’s $2 billion integrated resort currently being built on the Near West Side of the city. The change comes after Mayor Brandon Johnson allowed the City Council’s $16.6 billion “alternative” budget to move forward on January 1st, without his signature or veto. This budget includes provisions that would lift the longstanding ban on VGTs in Chicago.
The move to introduce VGTs presents a direct competitive threat to Bally’s, which holds the exclusive casino license for Chicago and plans to open its permanent facility by September 2026. The casino operator is concerned not only with potential revenue losses but also with the impact on tax income that Chicago relies on for funding public services and pension obligations. This shift marks a significant moment in Chicago’s gaming landscape, challenging the city’s previous model that centered around exclusivity.
Chicago’s casino framework was structured to provide Bally’s with a unique market position, awarded in 2022, under an agreement that included annual payments to the city and commitments to job creation, with part of the gaming taxes designated for underfunded police and fire pension funds. The introduction of VGTs, which are already popular across Illinois and recognized as a profitable segment of the state’s gaming industry, could disrupt this framework by redirecting casual gaming away from the casino to local bars and restaurants.
Bally’s has been vocal about the economic threats posed by the introduction of VGTs, emphasizing that such a move would dilute casino revenues and weaken the projected tax base from its flagship gaming project. In response to the City Council’s budget passage, Bally’s issued a statement highlighting the financial risks: “Every alderman should be gravely concerned about the serious loss of casino revenue for the City of Chicago, and specifically for police and fire pension funds, that will result from this vote.” The company estimates a yearly tax loss of $260 million from Bally’s Chicago Casino, with the city missing out on approximately $70 million in tax revenue annually.
Moreover, Bally’s warned that the diminished casino performance could lead to significant job losses, estimating that between 750 and 1,050 union jobs could be at risk. This potential loss undermines the project’s core promise of job creation, a key element in the initial agreement with the city. Bally’s urged immediate collaboration between the City Council and the Mayor to address and mitigate the negative impacts of this budget decision.
The timing of the VGT debate adds pressure as Bally’s grapples with delays in the construction of its permanent casino, caused by land acquisition and design changes. These issues have placed the company under significant pressure to meet the state-imposed opening deadline in September 2026. Currently, Bally’s is operating a temporary casino at Medinah Temple in River North, which has underperformed against financial projections. While it has generated about $14.4 million in tax revenue for Chicago in 2025, expectations were set at closer to $35 million.
In this context, any policy changes constraining revenue at the permanent site pose a substantial risk to the project’s long-term success. Meanwhile, Chicago’s 2026 budget also includes other gaming-related measures, such as a new 10.25% tax on sports betting operators based in Chicago, adding to the existing state and county taxes. This could result in a combined tax burden exceeding 50% for major sportsbooks.
Another aspect of the city’s casino license pertains to gaming positions at airports. Bally’s is allowed to introduce gaming at either O’Hare or Midway airports, with plans to implement operations at Midway in 2026. The projected annual revenue from airport gaming is between $30 million and $40 million, although key operational details remain undecided.
Proponents of VGT legalization argue that Chicago has been missing out on significant revenue opportunities. Illinois boasts the largest VGT network in the United States, with nearly 49,500 terminals across more than 8,700 venues. In 2025 alone, VGTs brought in over $1 billion in net terminal income tax revenue, including roughly $148 million for local governments. Despite being the state’s largest city, Chicago has not benefited from this municipal share due to its VGT ban.
Alderman Anthony Beale, who sponsored the VGT legalization ordinance and chairs the City Council’s Committee on License and Consumer Protection, has argued that even a limited rollout could provide substantial revenue. During budget hearings, Beale estimated that licensing fees could bring in approximately $6.8 million in 2026, even considering the potential loss of Bally’s host community payment. Using data from the Illinois Gaming Board, Beale projected that annual VGT revenue for Chicago could range between $65 million and $100 million, depending on adoption and terminal density.
This shift in Chicago’s gaming policy highlights differing perspectives on maximizing the city’s revenue potential. While Bally’s remains apprehensive about the competitive and financial implications of VGTs, city officials and others see legalization as a way to tap into an existing, lucrative market. As Chicago navigates this new landscape, the impacts of these decisions will unfold, shaping the city’s fiscal health and the future of its gaming industry.
Erik Agary is a seasoned writer at True Games Reviews, specializing in gaming, casino games, and interactive entertainment. With a passion for all things digital, Erik dives deep into the latest trends and developments in the gaming world, offering insightful reviews and detailed analysis. His expertise spans across multiple gaming platforms, ensuring comprehensive coverage that resonates with both novice and experienced gamers alike.
4.2/5Instant Casino
Up to 10% cashback
