Bally’s Chicago Pays $4M Annual Fee, Video Poker Players Watch VGT Battle

Bally’s Chicago has paid its $4 million annual community impact fee to the city, meeting the Sept. 9 deadline under the Host Community Agreement (HCA) despite an escalating dispute over video gaming terminals (VGTs). The payment comes weeks after Bally’s halted construction on all non-gaming components of its planned $1.7 billion permanent casino resort, citing the City Council’s move to allow VGTs in bars, restaurants, and truck stops across Chicago.

For video poker players in the Chicago area, the conflict matters directly. VGTs are slot-like machines that offer video poker variants in hundreds of local establishments. If the city keeps VGTs, Bally’s argues it will face new competition that was not part of the original deal when the company bid on the casino license. Video poker enthusiasts who currently play at Bally’s temporary casino at Medinah Temple may soon see changes in game availability, promotions, or even the timeline for the full resort’s hotel and entertainment spaces.

Payment made, but tensions remain

Bally’s transferred the full $4 million to the city on Wednesday, Sept. 9. Under the HCA, $2 million is classified as a direct impact fee and $2 million as an indirect impact fee. The agreement requires the payment each year on Sept. 9, the anniversary of the temporary casino’s opening in 2023. Bally’s also paid Chicago a one-time $40 million fee when the HCA was signed on June 9, 2022.

The payment was not guaranteed. In the weeks leading up to the deadline, Bally’s executives threatened to withhold the contribution, arguing that the city had failed to uphold its end of the agreement by authorizing VGTs.

Key facts

VGT dispute drives construction pause

On Aug. 9, Bally’s notified its general contractor to stop work on all non-gaming components of the permanent resort. The halted elements include a 500-room hotel, a 3,000-seat theater, 30,000 square feet of convention space, 10 restaurants and bars, and public greenspace connecting to the Chicago Riverwalk. Only the casino floor construction continues.

Bally’s officials said the decision was a direct response to the Chicago City Council’s approval of VGTs as part of the 2026 budget. The city estimates VGTs will generate about $7 million per year in new tax revenue. Bally’s claims the HCA prohibits the city from authorizing any new form of gambling, including VGTs. The company argues it would not have made the same bid for the casino license had it known VGTs would operate across the city.

The HCA text states that if Chicago authorizes a new casino, increases the gaming privilege tax on Bally’s gross gaming revenue, or authorizes “a new form of gambling under the Illinois Gambling Act,” the obligation to pay the annual impact fees “shall be subject to good-faith renegotiation.” However, VGTs were not legalized under the Illinois Gambling Act but under the separate Video Gaming Act of 2009. That legal distinction is central to the dispute.

Mayor Brandon Johnson has opposed VGTs, as did his predecessor, Lori Lightfoot, who negotiated the casino deal with Bally’s. The City Council, however, moved forward with the VGT authorization to close a budget gap.

What video poker players should watch

For regular video poker players at Bally’s Chicago, the uncertainty means several things to track:

The temporary casino at Medinah Temple remains open and operational. No changes to game availability or hours have been announced. But the stalled hotel and entertainment construction means the full resort experience is delayed indefinitely. Bally’s has scheduled an investor and media conference call for Monday, Sept. 14, at 12 pm ET, where executives including Executive Chairman Soo Kim are expected to “review progress and recent developments.”

If VGTs remain legal in Chicago, video poker players will have more places to play, but the competition may reduce the resources Bally’s is willing to invest in its video poker offerings. Casinos typically use video poker as a lower-margin draw compared to slots, and a crowded market could lead to tighter paytables or fewer promotions at the Bally’s property.

On the other hand, if the city and Bally’s reach a compromise that restricts VGTs or provides Bally’s with compensation, the permanent resort may move forward with its full hotel, theater, and dining amenities. That would give video poker players a destination with more amenities than the current temporary facility.

The legal and political situation remains fluid. The HCA clause about good-faith renegotiation leaves room for both sides to adjust terms. Bally’s has not said whether it will resume full construction, and the City Council has not signaled any intent to reverse the VGT authorization.

Source: Casino.org News – “Bally’s Chicago Makes Annual $4M City Payment Required Under Host Agreement” – https://www.casino.org/news/ballys-chicago-makes-annual-4m-city-payment/