Bally's may get another year to open permanent casino in River West

Chicago has waited for decades for the permanent casino and entertainment complex that mayors have long coveted. Now the city might have to wait another year.

At Bally’s behest, State Rep. Kam Buckner (D-Chicago) introduced a bill on Thursday that could extend the casino giant’s license to operate its temporary casino at Medinah Temple until September 2027.

That would give Bally’s up to another year to complete and open its $1.7 billion casino and entertainment complex in River West, where construction cranes went up in the fall.

“When we passed the initial casino bill, the thought was that these temporary casinos would have like three years to operate and then, folks would be able to move on. We’ve seen that that window is a pretty short one,” Buckner told the Sun-Times.

“As we enter almost the end of Chicago’s temporary casino license, 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. It’s important that we at least give them the ability to figure this out the right way without having that clock ticking.”

Bally’s officials said they’re still aiming to open the permanent casino this September, but the legislation is needed as a precaution.

“We appreciate the partnership with City leaders and the General Assembly,” Bally’s vice president of corporate development Christopher Jewett said in a statement. “This proposed legislation allows us to continue operating responsibly while we advance our permanent facility and deliver on the long-term commitments to Chicago.”

The bill would give Bally’s another six months of operation at Medinah, with an option for two extensions of three months apiece.

With all of the financing, construction and contracting problems that Bally’s has already encountered, Buckner said it’s reasonable to question whether the need for another extension signals long-term viability concerns.

In fact, Buckner said he shares those concerns, particularly about whether, even if the permanent casino does get fully built, the revenue produced will be enough to save police and fire pension funds hovering dangerously close to bankruptcy.

But pushing back the deadline gives Bally’s another year to prove they have what it takes to deliver.

“The whole thing may be in jeopardy, right? It’s fair and healthy to have doubts. But the only way to figure that out is to let the process play out another twelve months. All I’m asking for is to give them the space that they need to, hopefully, make this thing work,” Buckner said.

“This is not another three-year extension. It’s not a two-year extension. It’s a twelve-month extension. You let the process play out. You give them the ability to try to do the work that they’re doing to try to stand this up. Twelve months to me is plenty of time to figure out whether or not that will be the case or not.”

It’s the latest stumbling block en route to opening the mega-casino sought by generations of Chicago mayors to help rescue its police and firefighter pension funds.

Bally’s had to scramble in 2024 to secure more than $900 million in construction financing, was forced to rework its site plan to avoid damaging a city water main — and had its construction briefly halted last year after the Sun-Times spotted a waste-hauler with reputed mob ties at their site.

A Chicago casino was the crown jewel of landmark gambling legislation signed by Gov. JB Pritzker almost seven years ago. Former Mayor Lori Lightfoot handed the coveted Chicago casino license to Bally’s in 2022, and the Rhode Island-based company opened its temporary casino at the historic Medinah Temple just over a year later.

Returns from the temporary casino at 600 N. Wabash Ave. have fallen far short of initial projections from the city. With other new casinos prospering in their final forms in Waukegan, Rockford and Chicago’s south suburbs, Bally’s has found itself in the middle of the pack of Illinois’ roster of gambling houses. It made $9.9 million last month, eighth among the state’s 17 casinos.

The Medinah operation has racked up $280 million in revenue since it opened in September 2023, churning out $35 million for the city and almost $43 million in state tax revenue.

State gambling law authorizes casino developers to operate temporary casinos for up to three years. Bally’s acknowledged at the time that that was a tight timeline to finish the casino at 777 W. Chicago Ave.

Bally’s warned last fall that lifting the Chicago ban on video gambling would cost the cash-strapped city $74 million in annual revenue and as many as 1,050 jobs at its temporary and permanent casinos.

Elizabeth Suever, vice president of government relations for Bally’s, said then that video gambling would force Mayor Brandon Johnson’s administration to renegotiate “critical elements” of its host agreement with Bally’s. It would wipe out a yearly $4 million lump-sum payment from Bally’s and shrink the jackpot needed to save police and fire pension funds.

The warning went unheeded.

The alternative budget — approved by the City Council over Johnson’s objections — legalized video gambling and counted on $6.8 million in licensing fees in 2026.

The $16.6 billion budget assumes that 80% of the 3,300 eligible Chicago establishments with off-premises liquor licenses would apply for the license to install video gambling terminals. That has angered some local alderpersons, who don’t want their wards saturated with those terminals.

Johnson shares those concerns and has yet to deliver the official notification to the Illinois Gaming Board needed to secure the approvals needed to trigger the Chicago licensing process.

Yet another complication for Bally’s is Chicago’s decision to apply its 10.25% amusement tax to online sports betting. That threatens to cut into revenues at the sports book at a Bally’s casino. The Chicago tax is now the subject of a court challenge.

Buckner said the one-year delay would provide plenty of time to sort out those issues.

Ald. Brendan Reilly (42nd), whose downtown ward includes the Medinah casino, said he was not surprised by the one-year extension. "I hate to say, `I told you so.' But, I told you so," said Reilly, who has doubted Bally's viability from the very beginning.

"It was clear — looking at their construction time line and their financing — that there was no way they were going to meet the state deadline. The fact that they're missing basic time lines like delivering the core and shell of a casino doesn't inspire a lot of faith in their ability to execute a plan on them operating one here."