Bally’s Chicago construction halted due to contracting violation

Hands up, shovels down—Bally’s has been ordered to halt construction on its Chicago casino due to the discovery of a contractor with ties to organized crime.

The Illinois Gaming Board (IGB) issued a stop-work order to Bally’s Corporation on Thursday concerning its ambitious $1.7 billion permanent casino project in Chicago. This decisive action followed the revelation that an unapproved contractor with a contentious history had been utilized at the site.

A report from the Chicago Sun-Times uncovered that dumpsters from D&P Construction were present at the Bally’s site. D&P has a documented affiliation with the late John and Peter DiFronzo, figures known for their connections to organized crime in Chicago. Although both are deceased, regulatory scrutiny remains due to the company’s notorious background; Peter’s widow was previously listed as an owner but is no longer associated with the firm, according to the Sun-Times.

In light of these findings, the IGB has expressed significant concern, stating:

“The Iowa 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….IGB staff learned earlier this week that D&P is providing or provided waste removal services at the permanent casino construction site. However, D&P was not disclosed to the IGB and the IGB did not approve D&P.”

The board emphasized that this discovery “raises several serious concerns,” and the investigation is ongoing.

JUST IN: D&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. https://t.co/xitWm57Bx1— Chicago Sun-Times (@Suntimes) May 1, 2025

No Margin for Error

In response to the IGB’s directive, Bally’s acknowledged the situation, stating, “We were informed by the IGB that the contractors working on the Bally’s Chicago site were utilizing an unapproved vendor and were issued a stop work notice.” The company has indicated that it is collaborating with the IGB to rectify the issues and ensure compliance going forward.

Spokeswoman Lauren Westerfield commented to the Sun-Times, outlining that Bally’s is formulating a new strategy for subcontractor vetting. Construction will not resume until the IGB grants approval for this revised plan.

The repercussions of this investigation could be significant for Bally’s, especially considering the state mandates that the casino must commence operations by September 2026. Historically, timelines for large-scale projects like this can be tenuous, and any extended work stoppage could jeopardize completion.

This investigation represents just one of the setbacks in a project that has encountered numerous challenges over the years, including a major redesign due to conflicts with city water lines and a substantial funding gap, recently addressed through a $940 million agreement with Gaming and Leisure Properties. The project has also faced interruptions, such as a three-week halt in late 2023 caused by debris entering the nearby Chicago River.

Bally’s has been operating a temporary casino in Chicago since September 2023, which has yielded $29 million in revenue this year, contributing $3 million in taxes to the city. However, this figure falls short of the projected $16.5 million stipulated in the city’s fiscal budget for 2025.

D&P’s Previous Involvement: A Troubling Legacy

The complications surrounding the contracting issue are exacerbated by D&P’s history with the IGB, particularly its involvement in a previous casino scandal. In 2001, while efforts to build the Emerald Casino in Rosemont were underway, the IGB filed a complaint stating that “the owner of D&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 organized crime. Emerald’s failure to exercise appropriate supervision resulted in work being performed at the site by D&P.”

A 2005 memo from the Federal Bureau of Investigation indicated that D&P “obtained contracts through illegal payoffs or intimidation,” underscoring the gravity of the situation and the deep-rooted concerns surrounding the company. Ultimately, the Emerald’s license was revoked and subsequently awarded to Des Plaines, where Rivers Casino now operates, consistently ranking as Illinois’s top revenue-producing casino, with over $2 billion in earnings in the last five years.

As the IGB’s investigation continues, the focus remains on maintaining integrity and transparency in the gambling industry—an essential component for fostering trust and safeguarding the future of casino operations in the state.