Regulators Stop Work on Bally’s $1.7B Chicago Casino Construction

Construction activities on Bally’s $1.7 billion Chicago casino in River West have been suspended by the Illinois Gaming Board (IGB) after findings revealed that the contractors working on the site employed the services of an unauthorized waste hauler. The investigations showed that the project’s contractors were using the services of D&P Construction, a waste management company that had been previously linked to a Chicago crime syndicate.

Following this discovery, the IGB issued a stop-work order on construction activities at the casino complex site. This development has cast doubts on whether the project will be completed as its timeline states. It is also a setback for players who looked forward to making the best use of this land-based casino.

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This suspension has added to a list of challenges that Bally’s has faced in its construction process. After going through a rigorous process to get the casino site approved, Bally’s faced financial setbacks that almost jeopardized the entire project. However, in July 2024, the company secured $940m from Gaming and Leisure Properties to fund the construction of its $1.7 billion casino project.

The project has also suffered setbacks due to design changes and environmental delays, which include a 3-week pause in construction after debris from the site was found in the Chicago River. This stop-work order is the newest of its challenges and puts more strain on the project, as the gaming board hasn’t disclosed when construction can resume. Bally’s will continue operating from its temporary location at N. Wabash Ave while it awaits the completion of the investigation and the project as well.

Investigations like this are common in Illinois, as there have been previous cases of ties between casino operators and companies with ties to organized crime groups. In 2001, there was a similar case in Rosemont, when a license was awarded for the building of a casino. Investigations showed that a company vying for a license to build a casino in Rosemont, the same D&P Constructions, had criminal affiliations. Given that they had already pledged $50 million to the village fund concerning the project, it was later redeveloped into a movie theater.

Bally’s responded to the statement from the IGB by promptly complying with the stop-work order. In an address by Lauren Westerfield, who is the spokesperson for Bally’s, the company noted that it was informed by the gaming board on May 1st about the use of an unapproved vendor and the issuance of a stop-work order.

She also stated that the company is working with the gaming board to find a way to resolve the issue and prevent it from happening again. The company is putting heads together with the Chicago Community Builders’ Collective to ensure that this project comes to life while giving smaller contractors in the city a chance to participate in the completion of the casino complex.