Bally's Corporation has halted construction on the non-gaming aspects of its $1.7 billion Chicago casino project, creating significant pressure for the city following a recent budget adjustment that lifted a ban on video gambling terminals. Meanwhile, in Las Vegas, Bally's is facing its own set of challenges.
In April 2021, Bally's acquired the operations of the former Tropicana Las Vegas for $148 million, with the transaction completing in September 2022. An agreement was reached with landlord Gaming and Leisure Properties (GLPI) to demolish the site in 2024 to facilitate the construction of a major league baseball stadium for the Athletics, while allowing Bally's to plan a new resort on the remaining land.
After the demolition, Bally's remained quiet about its plans for the property for almost a year, while exploring other projects, including a casino in New York City and a potential acquisition of Australian operator Star Entertainment.
In September, Bally's unveiled a blueprint for a mixed-use development that would include two towers with 3,000 hotel rooms, a 2,500-seat entertainment venue, and over 500,000 square feet dedicated to retail, dining, and entertainment. The project's rendering suggests it will closely surround the A's stadium. December filings with Clark County outlined a four-phase construction plan, with a projected completion date by December 2030, costing $1.19 billion.
As preparations for the A's stadium proceed on schedule for an anticipated spring 2028 opening, uncertainties remain regarding Bally's development and its financing capabilities.
Bally's has highlighted that its immediate focus is more on the retail-entertainment district (RED) rather than the casino or hotel components. Chairman Soo Kim indicated at the ICE Barcelona conference in January that the company prioritizes the development of the RED before pursuing the integrated resort and casino.
This stance was echoed by CFO Mira Mircheva and attorney Dan Reaser during June discussions before the Nevada Gaming Commission. Reaser clarified that the 2028 deadline relates to the stadium, not Bally's construction plans, emphasizing that the timeline for the retail elements, parking, utilities, and plaza was defined, but the towers would come later.
The idea of the A's opening their new stadium next to an unfinished construction site has raised concerns among parties in Las Vegas. Reports from The Athletic indicated that the A's may prepare contingency plans to develop their own site infrastructure if Bally's fails to keep pace, which could incur an estimated cost of $100 million.
Steve Hill, CEO of the Las Vegas Convention and Visitors Authority, stated that Bally's might not have the necessary financing for the project, pressing the company for a detailed financing plan by August. Bally's declined to comment on any ultimatum, and the LVCVA did not respond to inquiries.
In its first-quarter 10-Q filing to the SEC, Bally's reported total cash and equivalents of $559.3 million, alongside long-term net debt totaling $4.3 billion. The company has yet to release its second-quarter results and indicated a late report filing. Bally's shares rose by 5% to $13.70 in trading on Wednesday, although they remain down about 18% for the year.
GLPI is also involved in the Las Vegas project, having invested significantly in various Bally's developments, including in Chicago. Bally's has leased the Tropicana site from GLPI since 2022, with adjusted lease terms after the demolition.
GLPI has committed to investing up to $125 million for developments that are beneficial on the Las Vegas site. During GLPI's first-quarter earnings call, COO Brandon Moore mentioned that Bally's is approaching a more concrete plan for essential infrastructure that will support the stadium, such as access roads and utility systems. He noted that while further investments beyond the $125 million might be possible in the future, no immediate commitments are planned.
