Chicago’s effort to establish a permanent casino and entertainment complex continues to encounter delays tied to financing, construction challenges, and shifting revenue expectations. Bally’s Chicago, which has been operating temporarily inside the historic Medinah Temple since 2023, is now pursuing legislative approval to continue using the temporary venue through September 2027 amid concerns that the new $1.7 billion facility may not be finished in time.
Request for Additional Time to Finish Construction
State Rep. Kam Buckner introduced legislation that would allow Bally’s to keep operating at Medinah Temple while construction at the River West site progresses. As reported by the Chicago Tribune, the bill would provide an extra six months beyond the existing temporary license, with the option for two additional three-month extensions. Bally’s leadership described the extension as a precaution to accommodate the project timeline. A senior company official stated that “The adjusted timeline allows for Bally’s Chicago to operate the temporary casino inside of Medinah Temple through September 2027, if needed.”
Bally’s had announced as recently as the prior week that it expected to open the permanent casino in the fourth quarter of 2026. Even that timeline required an extended temporary license under existing Illinois Gaming Board rules. The project has faced multiple setbacks, including a Freedom Center demolition stoppage after debris entered the Chicago River, a work stoppage related to an unauthorized waste hauler, and a relocation of the hotel tower to avoid city water infrastructure. These issues prompted Bally’s to acknowledge that the initial three-year window was ambitious for completing such a large venue.
Buckner said the original timetable for temporary casinos proved insufficient, noting, “We haven’t seen a lot of movement. It’s been everything from the work stoppage to some of these broader issues that we’re trying to figure out in the city.” He argued that a limited extension would allow the process to continue without the deadline pressure that comes from an expiring license. Buckner added that “The whole thing may be in jeopardy, right? It’s fair and healthy to have doubts,” while emphasizing that allowing another year would reveal whether the permanent casino can meet expectations.
Revenue Performance and Competitive Pressures
The temporary casino opened in September 2023 with revenue levels trailing projections. Last year, the venue generated almost $125 million in adjusted gross receipts and drew 1.3 million visitors. Performance placed Bally’s in the middle among the state’s 17 casino operators, while new casinos in other parts of Illinois posted stronger gains. Returns at the temporary casino hit $280 million since opening, including $35 million for the city and nearly $43 million in state tax revenue. Rival facilities in Rockford, Waukegan, and Chicago’s south suburbs are advancing toward permanent operations or expansions, adding competition to the market as Bally’s works to stabilize its own position.
The city’s broader gambling landscape has also shifted in recent months. The legalization of video gambling terminals in Chicago introduced new revenue considerations for Bally’s, while alderpersons debated concerns about saturation. Chicago’s decision to apply its amusement tax to online sports betting added another point of friction and became the subject of litigation. Buckner said the additional year proposed in the legislation would provide room to address revenue, regulatory, and contractual consequences tied to those developments.
Despite the delays, Bally’s reaffirmed its commitment to the Chicago project. A company representative stated that “This proposed legislation allows us to continue operating responsibly while we advance our permanent facility and deliver on the long-term commitments to Chicago.” City officials did not issue a comment when asked about the revised opening framework for the permanent casino and hotel complex.
