Bally's Under Pressure: Chicago Dispute Over Terminals vs. New York License Success

In Chicago, the tone between the city administration and gambling giant Bally's is sharpening. A group of 28 alderpersons signed an official letter on Wednesday calling on the company to fully resume work on the planned casino complex. The project, seen as a major economic hope for the city, recently stalled as Bally's expressed concerns regarding profitability. The reason for the delay is a city council decision to allow hundreds of new video gambling terminals throughout the city.

Bally's fears that these decentralized gaming machines could drain significant revenue from the main casino. While construction of the casino portion itself is progressing, other promised parts of the project, such as the integrated hotel and various restaurants, are currently on hold. However, the council members emphasize that selective completion is not acceptable. Pressure on the company is mounting as the city relies on the promised jobs and tax revenues to be generated by the overall project.

Numbers and facts

A look at the numbers illustrates the scale of current developments. In Chicago, the casino opening is scheduled for early 2027, but delays in infrastructure could jeopardize this timeline. Meanwhile, Bally's has achieved a massive success elsewhere. In New York, the State Gaming Commission (NYSGC) unanimously approved a commercial license for Bally's in the Bronx. This license alone costs 500 million US dollars.

The planned resort in the Bronx is expected to involve an investment volume of 4 billion US dollars. In addition to these costs, Bally's owes 115 million US dollars to the Trump Organization to fully take over the former site of a golf course. In contrast, Resorts World in Queens is planning an investment of 5.5 billion US dollars and aims to open the first phase as early as March 2026. The tax burden for such projects is immense: Resorts World proposed tax rates of 56 percent for slots and 30 percent for table games to secure the bid.

Background

The conflict in Chicago reflects a fundamental industry issue: competition between large land-based casinos and the booming market for smaller, local gaming terminals. Brian O’Dwyer, chairman of the New York commission, emphasized the importance of jobs and economic development during the licensing in New York.

"To all three who have been granted this conditional licence, congratulations on behalf of the state of New York. We look forward to seeing the jobs, economic development, infrastructure and gaming revenue come to fruition." - Brian O’Dwyer, Chairman of the New York State Gaming Commission

This positive mood on the East Coast stands in stark contrast to the situation in Chicago. There, Bally's faces allegations of failing to keep promises to the community. The 28 council members demand that Bally's not only focus on the profitable gambling area but also build the gastronomic and lodging facilities important to the neighborhood.

Why it matters for German players

For German players, these major US projects have no direct impact on daily life, but they show how important clear regulation is. In Germany, the State Treaty on Gambling 2021 (GlüStV 2021) strictly regulates where and how gaming may occur. While in the USA there are often disputes over local tax rates and terminals, the Gemeinsame Glücksspielbehörde der Länder (GGL) focuses on player protection through central monitoring systems like LUGAS. German players playing in GGL-licensed online casinos benefit from fixed stake limits of 1 Euro per spin and a monthly deposit limit of 1,000 Euro. Anyone playing in Germany does not have to worry about sudden construction delays or local political disputes as long as they choose providers from the official whitelist. This transparency is often missing in the heated debates of Chicago, where economic interests clash with political decisions.

What it means for GGL-licensed casinos

Companies on the GGL whitelist operate in an environment that offers planning security. Unlike Bally's, which is struggling in Chicago with unexpected competition from new terminals, the rules in Germany are the same for all licensed operators. The focus here is on combating illegal offers from overseas (MGA or Curacao), which often operate without player protection. German licensees must adhere to strict advertising guidelines but have the legal certainty of a regulated market in return. The instability in Chicago shows how risky investments can be when local authorities change their strategy. For the German market, this means that the GGL acts as an anchor of stability, protecting both the market and the player by setting clear limits on stakes and deposits.