Illinois Gaming Board Allows Bally’s Development to Restart

Construction crews are headed back to Bally’s $1.7 billion Chicago casino project after a state mandated work stoppage. So are the regulators, the lawyers and the lenders.

Construction can resume on Bally’s permanent Chicago casino after state regulators lifted a stop-work order triggered by the use of an undisclosed vendor with alleged mob ties, the Chicago Sun-Times reported.

The Illinois Gaming Board gave the green light to restart work on May 15 after halting the project at the start of the month due to undisclosed vendors operating at the River West site. The suspension followed an investigation from the outlet that revealed dumpsters on site belonging to D&P Construction, a waste hauler previously linked by authorities to organized crime figures.

The gaming board said Bally’s had since corrected its vendor disclosure failures and committed to ongoing oversight improvements.

“Presently, no vendors are working on the casino construction project without IGB approval,” the board stated, but the matter “remains under investigation.”

The casino, approved by City Council in 2022, is projected to open next year and includes a hotel and entertainment venues. Bally’s expects it will generate over $800 million in annual revenue once fully operational.

The project has faced growing scrutiny in recent months, including an SEC-triggered overhaul of its public offering, the return of investor deposits and a credit downgrade from Fitch, which cited rising debt and revenue shortfalls at Bally’s temporary casino at the Medinah Temple in River North.

The casino is being built at 777 West Chicago Avenue, the former site of the Chicago Tribune’s printing plant.

Bally’s has not publicly commented since the board’s initial stop-work order. The board has not said whether the investigation will lead to penalties or fines.

Under Illinois gaming law, casinos must fully disclose and receive approval for all contractors and subcontractors to avoid criminal influence on state-sanctioned gambling operations. The board said D&P was not disclosed and not approved, triggering “several serious concerns.”

The situation echoes past enforcement actions, including a $1.65 million fine levied against Rivers Casino in Des Plaines over the hiring of a firm linked to reputed mob associates and a $3.2 million penalty against Elgin’s Grand Victoria Casino under similar circumstances.

In response to the pause, the gaming board said the company is implementing compliance measures, including tighter contractor screening, more frequent monitoring and site surveillance enhancements.

— Judah Duke