Bally’s Chicago wired its $4 million annual payment to the city of Chicago on Wednesday, Sept. 9, honoring a Host Community Agreement (HCA) obligation even as the developer and local government remain in an open dispute over slot-like video gaming terminals.
In This News
The company had signaled it might skip the yearly contribution, arguing that Chicago was not meeting its side of the HCA. The $4 million splits into a $2 million direct impact fee and a $2 million indirect impact fee, both spelled out in the agreement. The HCA pegs the payment date to Sept. 9, the anniversary of the temporary casino that opened inside the Medinah Temple in 2023. Bally’s also remitted a one-time $40 million when the HCA was executed on June 9, 2022.
Construction Frozen Over Video Gaming Terminal Vote
Everything else on the $1.7 billion project has gone quiet. On Aug. 9, Bally’s told its general contractor to stop work on all non-gaming components: a 500-room hotel, a 3,000-seat theater, 30,000 square feet of convention space, 10 restaurants and bars, and a public greenspace that would link the site to the Chicago Riverwalk.
Bally’s officials traced the halt to the Chicago City Council’s continued push to authorize video gaming terminals (VGTs) in restaurants, bars, truck stops, and social organizations. The HCA, Bally’s contends, prohibits the city from green-lighting any new form of gambling. The Council folded VGTs into its 2026 budget, projecting roughly $7 million in annual tax revenue from the machines.
Mayor Brandon Johnson has opposed VGTs, as did predecessor Lori Lightfoot, who negotiated the original casino deal with Bally’s. The HCA includes a renegotiation clause: if Chicago authorizes a new casino, raises the gaming privilege tax on gross gaming revenue, or approves a new form of gambling under the Illinois Gambling Act, Bally’s annual fee obligations become subject to good-faith renegotiation. A legal wrinkle complicates the argument. The Illinois Gambling Act legalized casino-style gambling, not VGTs. VGTs were authorized separately under the Video Gaming Act in 2009.
Project Update Set for Monday
The City Council has pressed Bally’s to resume resort-wide construction. Bally’s has countered that it would not have submitted its bid had it known VGTs would operate throughout the city. The company will address both positions on a conference call Monday, Sept. 14, at 12 p.m. ET. Bally’s Corp. Executive Chairman Soo Kim and other executives are scheduled to “review progress and recent developments.”
Why It Matters
The payment keeps Bally's Chicago in compliance with its HCA while the developer simultaneously halts $1.7 billion in non-gaming construction over the VGT dispute. For operators and regulators in Illinois, the standoff puts a live test on whether a host-community agreement can constrain a city council's authority to authorize new gambling formats. The Sept. 14 executive call will be the next public checkpoint on whether the project resumes or the legal dispute deepens.
FAQ
How much does Bally's Chicago pay the city each year under the Host Community Agreement?
Bally's Chicago pays $4 million annually, split into a $2 million direct impact fee and a $2 million indirect impact fee. The HCA requires the payment on Sept. 9 each year. The company also paid a one-time $40 million when the agreement was signed in June 2022.
Why did Bally's Chicago stop construction on the $1.7 billion project?
On Aug. 9, Bally's told its general contractor to halt all non-gaming construction, including the hotel, theater, convention space, restaurants, and Riverwalk greenspace. Bally's said the decision followed the Chicago City Council's move to approve video gaming terminals, which the company argues violates the Host Community Agreement.
What is the legal distinction between the Illinois Gambling Act and the Video Gaming Act?
The Illinois Gambling Act legalized casino-style gambling. VGTs were authorized separately under the Video Gaming Act in 2009. Bally's argues the HCA's renegotiation clause is triggered by new gambling under the Illinois Gambling Act, while the city's VGT approval falls under the older Video Gaming Act.
When will Bally's provide an update on the Chicago project?
Bally's Corp. Executive Chairman Soo Kim and other executives will hold a conference call on Monday, Sept. 14, at 12 p.m. ET to review progress and recent developments on the project, according to the company.
{“@context”: “https://schema.org”, “@type”: “FAQPage”, “mainEntity”: [{“@type”: “Question”, “name”: “How much does Bally’s Chicago pay the city each year under the Host Community Agreement?”, “acceptedAnswer”: {“@type”: “Answer”, “text”: “Bally’s Chicago pays $4 million annually, split into a $2 million direct impact fee and a $2 million indirect impact fee. The HCA requires the payment on Sept. 9 each year. The company also paid a one-time $40 million when the agreement was signed in June 2022.”}}, {“@type”: “Question”, “name”: “Why did Bally’s Chicago stop construction on the $1.7 billion project?”, “acceptedAnswer”: {“@type”: “Answer”, “text”: “On Aug. 9, Bally’s told its general contractor to halt all non-gaming construction, including the hotel, theater, convention space, restaurants, and Riverwalk greenspace. Bally’s said the decision followed the Chicago City Council’s move to approve video gaming terminals, which the company argues violates the Host Community Agreement.”}}, {“@type”: “Question”, “name”: “What is the legal distinction between the Illinois Gambling Act and the Video Gaming Act?”, “acceptedAnswer”: {“@type”: “Answer”, “text”: “The Illinois Gambling Act legalized casino-style gambling. VGTs were authorized separately under the Video Gaming Act in 2009. Bally’s argues the HCA’s renegotiation clause is triggered by new gambling under the Illinois Gambling Act, while the city’s VGT approval falls under the older Video Gaming Act.”}}, {“@type”: “Question”, “name”: “When will Bally’s provide an update on the Chicago project?”, “acceptedAnswer”: {“@type”: “Answer”, “text”: “Bally’s Corp. Executive Chairman Soo Kim and other executives will hold a conference call on Monday, Sept. 14, at 12 p.m. ET to review progress and recent developments on the project, according to the company.”}}]}
David Garato is a luminary in gaming journalism, renowned for peeling back the curtain on the gaming world with his witty and insightful commentary. A decade into weaving stories from the pixelated edges of indie games to the expansive universes of AAA titles, David’s work is a thrilling blend of analysis and adventure. When not writing, he’s live-streaming, sharing his gaming exploits with an engaged and growing audience. David doesn’t just write about games; he lives them, making him a trusted guide in the gaming community.
