Bally’s slows elements of Chicago on line casino challenge amid dispute over video gaming terminals, dividing City Council members

CHICAGO (WLS) — Bally’s Chicago is pausing development on a number of elements of its everlasting on line casino as a political combat intensifies over the way forward for video gaming terminals within the metropolis.

The firm says the rising push for lots of of recent terminals might drain income from the on line casino; it is a concern that has divided members of the City Council.

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At challenge is a call made throughout final yr’s finances negotiations to authorize a number of hundred video gaming terminals, or VGTs, as a manner to assist shut the town’s finances hole. Bally’s is now pushing again, hoping to get the town to rethink, prompting frustration from some aldermen who argue the on line casino operator is overstating the menace.

In a discover to the Chicago Community Builders Collective, which oversees development, Bally’s mentioned it’s “resetting the pace of construction” on elements of the challenge, together with the lodge, restaurant and music venue. The firm cited issues that widespread VGTs might siphon playing {dollars} away from the on line casino.

Several aldermen dispute that declare. Ald. Ray Lopez of the fifteenth Ward mentioned on line casino patrons and VGT customers aren’t the identical.

“We know that individuals that go to casinos are not the ones who are hanging out at the local bar or in your local restaurant, throwing a few bucks into a video gaming terminal while sitting there,” Lopez mentioned.

Although the state has authorised greater than 200 VGT licenses in Chicago, the town has not issued any permits. Ald. Anthony Beale of the ninth Ward argued that the give attention to VGTs ignores a bigger downside.

“We don’t have one VGT machine operating in the city of Chicago, but we’re allowing 7,000 illegal sweepstakes machines to operate, and they haven’t said a word about those machines operating every single day,” Beale mentioned. “And some of them are right across the street from where Bally’s is building their new casino.”

According to the Illinois Gaming Board, video gaming terminals generated practically $514 million in tax income for the state from January via June of this yr – nearly thrice the $177 million produced by casinos throughout the identical interval.

Ald. Walter “Red” Burnett, whose twenty seventh Ward contains the Bally’s web site, mentioned the corporate’s issues replicate developments seen elsewhere in Illinois.

“What we’ve seen across the state is that it’s 30% reduction in casino revenues wherever VGTs are issued in municipalities that have casinos, and so I understand where they’re coming from,” Burnett mentioned.

The metropolis is relying on on line casino income to assist fund pensions, however income from the non permanent on line casino in River North has to this point fallen in need of projections. Burnett mentioned the development slowdown could also be a chance to rethink the town’s method to VGTs.

“This is a wake-up call that we need to think about these things more prudently and more strategically before trying to open up a broader market for something that could be risky,” he mentioned.

Bally’s mentioned the on line casino itself stays on observe to open in early 2027. Burnett mentioned the corporate needs to reevaluate different parts, such because the lodge and restaurant, in case VGT growth reduces on line casino visitors. The mayor’s workplace declined to remark.