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Illinois regulators halt construction of Bally’s Chicago casino over unapproved contractor

admin by admin
May 2, 2025
in U.S. News
0
Illinois regulators halt construction of Bally’s Chicago casino over unapproved contractor

<p>The Illinois Gaming Board served Bally&#8217;s Corp with a work stoppage order on Thursday for its $1.7 billion permanent Chicago casino after the company was found to be using an unapproved contractor at the site with previous ties to organised crime.</p>

<p>Reporters from the <a href=”https://chicago.suntimes.com/the-watchdogs/2025/05/01/ballys-casino-license-illinois-gaming-board-reputed-mob-rosemont-difronzo” target=”_blank” rel=”noreferrer noopener”>Chicago Sun-Times</a> notified the IGB that dumpsters from D&amp;P Construction were seen on the Bally&#8217;s site. D&amp;P was previously tied to John and Peter DiFronzo, two men believed to be heavily connected to the Chicago mob. Both have now passed away, although Peter&#8217;s widow was for years listed as an owner of the company but is no longer, per the Sun-Times.</p>

<p>As a result, the IGB subsequently halted construction and released the following statement: </p>

<p>“The Illinois Gaming Board (IGB) issued an order to cease construction work on the Bally’s Chicago permanent casino in connection with a pending IGB investigation into the use of undisclosed and unapproved vendors at the construction site&#8230;. IGB staff learned earlier this week that D&amp;P is providing or provided waste removal services at the permanent casino construction site. However, D&amp;P was not disclosed to the IGB and the IGB did not approve D&amp;P.&#8221;</p>

<p>This discovery &#8220;raises several serious concerns&#8221;, the board said, and the matter is now under investigation.</p>

<figure class=”wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter”><div class=”wp-block-embed__wrapper”>
<blockquote class=”twitter-tweet” data-width=”550″ data-dnt=”true”><p lang=”en” dir=”ltr”>JUST IN: D&amp;P Construction Co., Inc., is providing dumpsters for the Bally’s work site, the Chicago Sun-Times discovered. Two decades ago, the company’s involvement in the construction of a casino led to concerns by regulators of organized crime influence.<a href=”https://t.co/xitWm57Bx1″>https://t.co/xitWm57Bx1</a></p>&mdash; Chicago Sun-Times (@Suntimes) <a href=”https://twitter.com/Suntimes/status/1918089366494171264?ref_src=twsrc%5Etfw”>May 1, 2025</a></blockquote><script async src=”https://platform.twitter.com/widgets.js” charset=”utf-8″></script>
</div></figure>

<h2 class=”wp-block-heading” id=”h-no-margin-for-error”>No margin for error</h2>

<p>In response, Bally&#8217;s said it was &#8220;informed by IGB that the contractors working on the Bally’s Chicago site were utilising an unapproved vendor and were issued a stop work notice.&#8221; The company said this &#8220;is the process at work&#8221; and asserted it was &#8220;working with the IGB to eliminate the possibility of it happening again&#8221;.</p>

<p>Spokeswoman Lauren Westerfield also told the Sun-Times that the company is drawing up a new plan for how subcontractors are vetted. Work can resume once the IGB approves the plan, but not before then. </p>

<p>Should the investigation evolve into a significant work stoppage, it could pose serious challenges for Bally&#8217;s. Under state law the casino is required to be up and running by September 2026. Even without the stoppage, that timeline was already tight for a project that is still in early stages. </p>

<p>This investigation is the latest hiccup for the project, which has been multiple years in the making. Other hindrances included a substantial redesign after initial plans were denied due to interference with city water lines as well as a significant funding gap, which was eventually filled through a <a href=”https://igamingbusiness.com/casino/ballys-new-chicago-casino/” target=”_blank” rel=”noreferrer noopener”>$940 million deal with Gaming and Leisure Properties</a>. The project was also halted for about three weeks in December and January after debris spilled into the nearby Chicago River.</p>

<p>Since September 2023 Bally&#8217;s has operated a temporary casino in the city, which has generated $29 million in revenue this year. The casino has contributed $3 million in city tax revenue in that span, which puts it behind the $16.5 million projection from the city&#8217;s budget for 2025.</p>

<h2 class=”wp-block-heading” id=”h-d-amp-p-involved-in-rosemont-scandal”>D&amp;P involved in Rosemont scandal </h2>

<p>The contracting violation and work stoppage may have looked different if it were not D&amp;P involved. But the IGB has history with the company, as D&amp;P was also tied to a previous casino scandal.</p>

<p>In 2001, as developers were attempting to build the Emerald Casino in the village of Rosemont, the IGB said in a complaint that the &#8220;owner of D&amp;P, Josephine DiFronzo, is married to Peter DiFronzo and is the sister-in-law of John DiFronzo, individuals who have been identified as known members of organised crime. Emerald’s failure to exercise appropriate supervision resulted in work being performed at the site by D&amp;P.â€</p>

<p>A 2005 memo from the FBI said D&amp;P &#8220;obtained contracts through illegal payoffs or intimidation&#8221;, per the Sun-Times. The Rosemont licence was eventually revoked and given to neighbouring Des Plaines, which is where Rivers Casino now operates. Chicago was not in the running for a licence at that time.</p>

<p>Rivers has long been the best-performing casino in the state, posting more than $2 billion in revenue over the last five years. </p>

Tags: Bally's ChicagoBally's CorporationconstructionhaltIllinois Gaming Board
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