Bally’s Chicago Casino Work Paused by Gaming Regulators

The Illinois Gaming Board ordered an immediate halt to construction at Bally’s planned $1.7 billion River West casino.

The work stoppage raises new questions about the timeline of the controversial development on the 30-acre former Chicago Tribune printing plant site at 700 West Chicago Avenue.

The stop-work order follows revelations that a subcontractor on the site, D&P Construction, has a past shadowed by alleged mob ties and was operating without proper disclosure and approval, the Chicago Sun-Times reported. State regulators are investigating the use of unapproved vendors, citing concerns over maintaining the integrity of Illinois’ gaming industry.

D&P’s involvement in a proposed Rosemont casino project two decades ago contributed to the Illinois Gaming Board revoking the Emerald Casino’s license, after regulators cited the company’s alleged ties to organized crime and failure to meet gaming industry standards. This scandal ultimately derailed Rosemont’s casino ambitions and shifted the license to Rivers Casino in Des Plaines, which went on to become Illinois’ top-grossing casino.

For Bally’s, which has faced challenges with keeping the Chicago complex on track, the pause marks another setback. The company already had to revive a fundraising effort for the Chicago casino project, dropping its initial focus on minority and women investors after facing pressure from federal regulators and legal challenges. Bally’s rejigged initial public offering prioritizes Chicago and Illinois residents instead.

With rising debt, downgraded credit, and disappointing revenues at its temporary Chicago casino, Bally’s says it will self-fund if necessary but hopes many of the original investors will return under the revised terms. Chicago officials have positioned the casino as a financial lifeline for the city’s underfunded pensions.

Some Chicago real estate players have pinned high hopes on the Bally’s project, which promises to transform the site with a 500-room hotel, 10 restaurants and a 3,000-seat theater — an anchor development expected to boost surrounding property values and spark new commercial and residential investment in River West and adjacent areas.

Bally’s, operating a temporary casino at the Medinah Temple since late 2023, was targeting September 2026 for the grand opening of its permanent facility. That timeline was already considered tight, and the construction halt could potentially delay progress, which could bog down related developments that were banking on increased foot traffic and rising demand in the area.