This week, Bally's Corp announced a halt in construction on the non-gaming portions of its $1.7 billion casino project in Chicago, intensifying the pressure on the city following a newly adopted budget that lifted a ban on video gambling terminals. Meanwhile, Bally's seems to be facing challenges in Las Vegas.
Bally's acquired the former Tropicana Las Vegas for $148 million in April 2021, with the deal finalized by September 2022. Following this acquisition, Bally's and its landlord, Gaming and Leisure Properties (GLPI), agreed to demolish the property in 2024 to facilitate the construction of a new MLB stadium for the Oakland Athletics, in return for the right to develop a new resort on part of the remaining land.
For nearly a year after the planned demolition, Bally's remained quiet regarding its intentions for the site. During that period, the company pursued other projects, including a casino in New York City and a potential acquisition of Star Entertainment, an operator based in Australia.
Last September, Bally's revealed plans for a mixed-use complex featuring 3,000 hotel rooms in two towers, a 2,500-seat entertainment venue, and over 500,000 square feet dedicated to retail, dining, and entertainment. The project's visualization places it prominently alongside the A's stadium. A subsequent submission to Clark County in December outlined a four-phase development plan, aiming for completion in December 2030 at a projected cost of $1.19 billion.
As the A’s stadium moves forward with a planned debut in spring 2028 to coincide with the MLB season, uncertainty looms over the final appearance of Bally's section of the site and its ability to follow through on its commitments.
Since the start of 2023, Bally's has expressed that the immediate focus is on developing the retail-entertainment district, rather than the casino resort aspect. During the ICE Barcelona conference in January, Chairman Soo Kim emphasized that the company is prioritizing the development of the retail-entertainment district even before the integrated resort and casino.
This message was echoed in June by CFO Mira Mircheva and attorney Dan Reaser, who clarified during a licensing hearing with the Nevada Gaming Commission that the 2028 deadline applies to the stadium’s opening, rather than Bally's project timelines. Reaser noted, "To make the record clear, the April deadline of 2028 is for the stadium to open and for the baseball season to proceed. The April 2028 timeline is for the retail district, parking garage, utilities and plaza, but not the towers that come at a later date."
Concerns have arisen in Las Vegas regarding the potential for the glitzy stadium to debut while surrounded by ongoing construction. A report from The Athletic cited that the Athletics are preparing contingency plans for building their infrastructure should Bally's fail to progress in a timely manner. These additional efforts could potentially cost the team $100 million.
Steve Hill, CEO of the Las Vegas Convention and Visitors Authority, indicated in a report that Bally's lacks sufficient financing for the project and had requested a financing plan from the company by August.
Bally's chose not to comment on Hill's remarks, and the LVCVA did not respond to inquiries for clarification.
Bally's latest SEC 10-Q filing for the first quarter noted total cash and equivalents of $559.3 million against long-term net debt of $4.3 billion. The company has not yet released its second-quarter results and filed a Form 12b-25, suggesting those results will be delayed. These challenges follow two consecutive quarters of late financial filings. Although Bally's shares rose by 5% to $13.70 in trading on Wednesday, they have fallen approximately 18% year-to-date.
GLPI, a significant stakeholder in the Las Vegas project, has invested heavily in Bally's projects nationwide, including the one in Chicago. Since 2022, Bally's has leased the Tropicana site from GLPI, and this lease was modified after the planned demolition in 2024. The lease lasts for 50 years, with potential extensions up to 99 years, although Bally's noted in its Q1 filing that these renewal options are not currently viewed as likely.
GLPI is willing to allocate up to $125 million for shared infrastructure developments that benefit both parties at the Las Vegas site. During GLPI's first-quarter earnings call on July 31, COO Brandon Moore indicated that Bally's is nearing a more solid plan for critical infrastructure, which will support the stadium, including access points and utility conduits. "There may be an opportunity for us to invest more in that property and some of that key critical infrastructure," Moore said. "We’ll take a look at that when that time comes. I don’t think we're prepared at the present time to commit to anything over the $125 million, and we’ll continue to work with Bally's and see if that makes sense."
