Bally's Corp has halted the construction of non-gaming aspects for its $1.7 billion Chicago casino project, a decision that intensifies bargaining pressures on the city, especially following a budget revision that removed a ban on video gambling terminals. Meanwhile, in Las Vegas, Bally's seems to be facing scrutiny regarding its own developments.
In April 2021, Bally's acquired the former Tropicana Las Vegas for $148 million, with the deal finalized in September 2022. Following the purchase, Bally's and its landlord, Gaming and Leisure Properties (GLPI), agreed to demolish the Tropicana in 2024 to facilitate the construction of a new stadium for the Athletics' MLB team while granting Bally's the right to build a new resort on available land.
After the plan for demolition was set, Bally's remained relatively quiet about its future intentions for the site while exploring other projects, such as a casino in New York City and a proposed acquisition of Australian gaming company Star Entertainment.
It wasn't until last September that Bally's revealed its vision for the Las Vegas site—a mixed-use complex incorporating 3,000 hotel rooms in two towers, a 2,500-seat entertainment venue, and over 500,000 square feet designated for retail, dining, and entertainment. The only rendering shared shows this development wrapping around the new stadium. In December, the company submitted plans to Clark County proposing a phased construction approach, targeting completion by December 2030, with estimated costs around $1.19 billion.
As the A's stadium moves ahead for a projected spring 2028 opening aligned with the MLB season, questions linger about Bally's plans and its financial capacity to realize them.
At the beginning of the year, Bally's reiterated that the project's immediate focus is on the retail and entertainment district, rather than the casino. Chairman Soo Kim stated at the ICE Barcelona conference that developing the retail-entertainment district is a priority "even before we build our integrated resort and casino." This point was echoed by CFO Mira Mircheva and attorney Dan Reaser during a hearing in June when Reaser clarified that the 2028 deadline is specifically for the stadium and its immediate infrastructure, including the retail district, parking garage, utilities, and plaza, while the hotel towers would follow at a later stage.
Concerns are arising in Las Vegas about the prospect of the A's new stadium debuting amid ongoing construction surrounding it. Reports indicate that the team is crafting contingency plans to establish its own infrastructure if Bally's construction doesn’t keep pace, potentially costing them $100 million.
Steve Hill, CEO of the Las Vegas Convention and Visitors Authority (LVCVA), mentioned that Bally's appears to lack the necessary financing for the project, emphasizing that he has urged the company to present a financial plan by August. Bally's opted not to comment on this ultimatum, while the LVCVA also refrained from responding to requests for comment.
In its first-quarter 10-Q filing with the SEC, Bally's reported having total cash and equivalents of $559.3 million, countered by long-term net debt of $4.3 billion. The company has not yet issued its second-quarter results and filed a Form 12b-25 to notify of late reporting, marking two consecutive quarters with delays. Although shares rose by 5% on Wednesday to $13.70, they have decreased by approximately 18% for the year.
GLPI also has a stake in the Las Vegas development. The real estate investment trust has invested billions into Bally's projects across the United States, including Chicago. Bally's leases the Tropicana site from GLPI, starting in 2022, with lease terms lasting 50 years and options extending to 99 years, although Bally's noted that the renewal options are not presently deemed likely to be exercised.
GLPI has committed up to $125 million for developments beneficial to both parties at the Las Vegas location. During its first-quarter earnings call on July 31, GLPI’s COO Brandon Moore mentioned that Bally's is nearing a more definitive plan for critical infrastructure needed for the stadium, including access ways and utility conduits. He acknowledged the possibility of further investment in the property, contingent on future evaluations.
