Bally's threatens lawsuit if Chicago keeps video gambling terminals legal, vows to halt $4M licensing payments

Bally's casino is warning Chicago aldermen it will sue the city if the City Council does not reverse its decision to legalize video gambling terminals in bars and convenience stores — and the company is offering a deal it says would replace the revenue the city was counting on.

At a committee hearing, Bally's senior vice president reminded aldermen that a 2022 agreement struck by the Lightfoot administration gave the company a monopoly on virtual slot machines within Chicago city limits. Legalizing video gambling terminals, known as VGTs, outside Bally's property would render that contract null and void, the company said.

The City Council approved legalizing VGTs as part of its late 2025 budget.

If the contract is voided, Bally's said it would halt its annual $4 million licensing payments to the city and would no longer honor its commitments to diversity and union hiring.

As an apparent olive branch, the company offered to immediately set up slot machine lounges at O'Hare and Midway airports. Bally's said that move would effectively replace the $6.8 million in revenue the city was counting on from legalizing VGTs in the 2025 budget.

Bally's is currently operating out of a temporary location in River West. The company's permanent casino is still roughly a year away from opening.