Mob-Linked Contractor Halts Bally’s Chicago Casino Project

Construction on Bally’s $1.7 billion permanent casino in downtown Chicago has come to a sudden halt following revelations that an unapproved contractor with historical ties to organized crime was operating at the site. The Illinois Gaming Board (IGB) issued an immediate stop-work order after a tip from the Chicago Sun-Times identified dumpsters belonging to D&P Construction—previously associated with known mob figures—on the premises.

The IGB confirmed Thursday that D&P, which had not been disclosed or approved as a vendor, had been providing waste removal services at the site. “This raises several serious concerns,” the Board said in a statement, noting that an investigation is underway into the use of undisclosed subcontractors on the high-profile project.

A History of Red Flags

D&P Construction has been linked in the past to John and Peter DiFronzo, both of whom were widely reported to have connections to the Chicago Outfit, an organized crime syndicate. Although both men have since died and ownership of the company has changed, scrutiny from regulators remains intense. As recently as 2005, an FBI memo cited by the Sun-Times alleged that D&P had “obtained contracts through illegal payoffs or intimidation.”

The company’s involvement in the failed Emerald Casino development in Rosemont in the early 2000s remains a cautionary tale. That project lost its license after D&P was found to be working on-site without appropriate oversight, ultimately leading to the license being reissued to a competing project in Des Plaines—now home to Rivers Casino, the state’s top-grossing gaming venue.

Bally’s Responds: Damage Control Mode

Bally’s Corporation acknowledged the violation and said it is cooperating fully with the IGB. A spokesperson said contractors at the site had used an unapproved vendor without informing Bally’s corporate leadership. “This is the process at work,” said Bally’s spokeswoman Lauren Westerfield, adding that the company is developing a new vetting protocol for subcontractors. Work may only resume once that plan is reviewed and accepted by state regulators.

The construction stoppage is a potentially serious setback for Bally’s, which is operating under a tight deadline. State law requires the casino to be fully operational by September 2026. With the project still in its early stages, any delays could put that target in jeopardy.

This is not the first challenge for the development. The project previously required a major redesign to avoid city water lines and faced a three-week shutdown late last year due to environmental concerns after construction debris entered the Chicago River. Funding hurdles were also a factor, only resolved through a $940 million deal with Gaming and Leisure Properties.

Since launching a temporary casino in September 2023, Bally’s has generated $29 million in revenue, contributing $3 million to city tax coffers. However, that figure falls well short of the city’s $16.5 million tax revenue projection for 2025. With the city banking on the permanent casino to help plug budget gaps, delays could create further fiscal stress.

 

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.

 

The Future

While it remains unclear how long the investigation will take, the involvement of a vendor with a controversial past has brought renewed focus to the gaming industry’s vulnerability to improper influence. The IGB, already known for its cautious approach, appears unlikely to move forward until full transparency is achieved.

As Bally’s works to get its billion-dollar project back on track, the stop-work order serves as a reminder that even in modern regulated markets, old scandals can resurface to halt new ambitions.