Construction of Bally’s $1.7 billion permanent casino in Chicago’s River West neighborhood has been abruptly paused following revelations that a subcontractor with historical ties to organized crime was working on the site without prior approval. The Illinois Gaming Board (IGB) intervened after an investigation by the Chicago Sun-Times revealed the involvement of D&P Construction, a waste-hauling firm previously associated with the notorious DiFronzo brothers, reputed leaders of the Chicago mob.

D&P Construction, based in Melrose Park, had been subcontracted to provide waste removal services at the casino site — located on the former grounds of the Chicago Tribune printing facility at Chicago Avenue and Halsted Street. The IGB was not informed of the company’s participation, which violates state rules requiring full disclosure and pre-approval of all vendors and contractors involved in casino operations.

“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 agency stated, according to Chicago Sun-Times. “This raises several serious concerns as the IGB does not know who is associated with D&P and if any of those associations could potentially violate the Act or rules.”

A Troubled Legacy Returns

The use of D&P Construction in a major Illinois casino development reawakens a controversial chapter from the early 2000s. Two decades ago, the company’s involvement contributed to the derailment of the Emerald Casino project in Rosemont. Regulators at the time raised red flags over D&P’s ownership, which included ties to Peter and John DiFronzo—figures the FBI identified as key players in Chicago’s organized crime circles.

In 2001, a complaint by the gaming board accused Emerald developers of poor oversight for allowing D&P to work on the site. A subsequent hearing officer cited an FBI memo claiming the company was “controlled” by the DiFronzo brothers and had secured contracts through “illegal payoffs or intimidation.” That project’s license was ultimately revoked and reassigned to what is now Rivers Casino in Des Plaines.

Though both DiFronzo brothers are now deceased, questions remain about D&P’s current leadership and its ongoing affiliations. While Peter DiFronzo’s widow was listed as a company officer for years, her current role is unclear, and D&P did not respond to media inquiries.

Bally’s Vows Transparency and Compliance

Bally’s officials acknowledged that D&P was hired through the Chicago Community Builders Collective (CCBC), a group aimed at promoting smaller, often minority-led firms in major projects. However, the failure to disclose the vendor to the IGB has led to serious regulatory consequences.

“Today we were informed by IGB that the contractors working on the Bally’s Chicago site were utilizing an unapproved vendor and were issued a stop work notice,” Bally’s said in a statement. “We appreciate the diligence and action of IGB. This is the process at work. We look forward to working with the IGB to eliminate the possibility of it happening again.”

Bally’s spokesperson Lauren Westerfield further clarified that the company is cooperating fully with the IGB and developing new vetting protocols to prevent future oversights. “We are redefining our process alongside the IGB to make sure everything that needs to be vetted in the future is handled correctly and that this doesn’t happen again,” she said. “We are working as fast as possible and have a good working relationship with the IGB.”

Timeline and Stakes for the City

The construction halt introduces a new complication in Chicago’s ambitious casino initiative. Bally’s was awarded the gaming license in 2022 by then-Mayor Lori Lightfoot, beating out other major players like Hard Rock and Rivers. The project is considered a financial lifeline for the city, with projected revenues aimed at bolstering underfunded police and firefighter pension systems.

Bally’s proposal included a 3,300-slot and 173-table game casino, along with 500 hotel rooms, six restaurants, a 3,000-seat theater, and other amenities. The project must be completed by September 2026 to comply with state law — a deadline that already looked tight before the current work stoppage.

The company had only recently overcome a series of delays, including an $800 million financing gap and a need to redesign parts of the site due to conflicts with underground city utilities. Bally’s also revised its investment strategy after regulatory obstacles blocked a minority-focused funding model, instead shifting to prioritize local Illinois investors.

Despite these challenges, Bally’s continues to operate a temporary gaming facility at the Medinah Temple in River North, which opened in September 2023. However, revenue from that location has thus far failed to meet the city’s optimistic projections.

Regulatory History Heightens Scrutiny

The IGB’s zero-tolerance stance toward undisclosed vendors stems from decades of vigilance against mob infiltration in Illinois’ gaming industry. In past incidents, such as Rivers Casino’s $1.65 million fine for employing a janitorial firm linked to organized crime and Grand Victoria’s $3.2 million penalty for similar reasons, the board has demonstrated its willingness to impose significant sanctions.

While it remains uncertain what disciplinary action Bally’s might face, Beth Kaufman, communications director for the IGB, noted that “violations of IGB Rules — including the disclosure and pre-approval requirements at issue here — could result in discipline including a fine or other actions.”

The length of the construction pause remains unclear, pending the outcome of the ongoing investigation into D&P’s role and the broader approval failures at the site.