In a brief eight-minute conference call on Monday, stakeholders from Bally's Corp, including Chairman Soo Kim and Wanda Wilson, chair of the Bally's Chicago board, provided an update on the company's permanent casino project in Chicago. The call came roughly one month after Bally's had announced a shift in the construction timeline for non-gaming aspects of the casino in light of the city's legalization of video gaming terminals (VGTs) earlier this year.
Kim stated that the primary goal of the call was to "reiterate our deep commitment to Bally's Chicago" and address "inaccurate reports" suggesting that construction had halted or slowed since the last update released in early August. He emphasized that construction remains active with about 1,000 skilled tradespeople currently working on the site, asserting, "Construction continues every day."
According to Kim, the casino is still slated to open in early 2027. However, the sequencing of certain development elements has changed. He expressed confidence that Bally's is "over-delivering" on its commitments to the city, explaining that the adjusted construction schedule better aligns with the terms of the Host Community Agreement. Additionally, he mentioned that the company plans to arrange tours of the construction site for investors and shareholders soon.
Kim stated, "Investors should view our actions through a straightforward lens: We are protecting the value of significant investments we’re making in Chicago while faithfully executing our contractual obligations. And let me say this again — we remain fully committed to Chicago."
This update comes amid ongoing discussions in the Chicago City Council regarding VGTs. Kim's remarks were more succinct compared to those made last week before the City Council's License Committee. At that meeting, Bally's President and interim Chief Financial Officer George Papanier indicated that the company intends to deliver the event center, 100 hotel rooms, and food and beverage components by early 2027. However, he noted that the company is reconsidering around 12% of the project’s planned amenities due to concerns about potential revenue losses from VGTs, which are positioned to be a significant revenue source for the state.
The City Council approved VGTs in its latest budget, effective January, despite opposition from Mayor Brandon Johnson, who was overruled by a council majority. As the Illinois Gaming Board has already granted 65 VGT license applications in Chicago, Papanier warned that the expansion of VGTs could result in a 30% to 50% decline in top-line revenue for Bally's casino, making it "irresponsible" to proceed with construction without a clear understanding of the landscape.
On Monday, Bally's stock increased by 7% to $9.84 but has experienced a 30% decline over the past month amid concerns regarding the Chicago situation and the company's financial stability, highlighted during its Q2 earnings report. In September, former CFO Mira Mircheva resigned, leading Papanier to assume interim responsibilities.
The current VGT dispute follows a challenging journey for Bally's, which was granted Chicago’s sole casino license in 2022. The company has faced multiple challenges including halted work due to debris issues and unapproved contractors, as well as an $800 million funding gap settled through a financing agreement with Gaming and Leisure Properties. Additionally, the project has required significant redesigns due to interference with city water lines.
Bally's has received extensions for its permanent project, now extended to three years as approved by the Illinois Gaming Board in 2023. The deadline has been pushed to September, with further extensions granted through legislation passed in June. Should the latest extension not have been granted, Bally's would have had to cease operations at its temporary casino at Medinah Temple until the permanent facility was operational, risking months of lost revenue. However, Kim previously stated that such a closure would have been "not the end of the world."
In a separate development, Bally's is also moving forward with its ambitious $4 billion Bally’s Bronx resort project in New York City. The company was one of three recipients of a city gaming license last year, alongside Resorts World New York City and Hard Rock's Metropolitan Park. On Monday, Bally's announced it secured $560 million in financing from WhiteHawk Capital Partners, aimed at advancing development for the Bronx project and general corporate purposes. This financing is expected to close within the quarter.
Kim noted, "This important financing allows us to progress the pre-construction planning process so that we are ready to complete the remainder of the capital raise and remain on schedule. The additional liquidity provides us greater flexibility for other capital opportunities."
In its New York application materials, Bally’s indicated that it would begin construction within "eight to nine months" after receiving a license, which is anticipated this month. The ambitious project aims for a singular phase opening by 2030, assuming timelines hold steady.
