Bally’s has dismissed concerns regarding its ability to meet the early 2027 deadline for opening a $1.7 billion casino in Chicago. Following a recent quarterly financial report where the company labeled itself as a “going concern,” it found itself under scrutiny for its significant debt, which stands at approximately $4.5 billion.
According to US accounting standards, when there is substantial doubt about a company's ability to continue operating, such a classification becomes necessary. Despite this, Bally’s has asserted that it possesses the funding necessary to complete the Chicago casino project on schedule. Kim Barker, Bally’s Executive Vice President and Chief Legal Counsel, emphasized this point in a statement to NBC Chicago. “Without question, we do have the funding, and we will complete it on time,” she stated. “Bally’s continues to be in a strong position to deliver the integrated casino and resort."
This announcement coincides with Bally’s negotiations regarding a $1.1 billion development linked to a baseball stadium for the Athletics in Las Vegas.
Bally's anticipates a positive cash inflow from both the Chicago development and its casino project in New York, which Barker believes will enable the company to manage its debts effectively. She noted, “Capital projects of this size and scope require a large outlay of funding before revenue comes in the door, before the doors are open.”
However, Bally’s financial outlook has faced challenges, as Fitch Ratings recently downgraded the company's outlook, raising concerns about liquidity and high leverage levels. The agency acknowledged Bally's history of securing capital but pointed out that the timing and amount of future funding, particularly for the New York development, remain uncertain.
In recent developments, Bally’s announced a “reset” of its construction schedule for the Chicago casino, which prompted criticism from several city council members. They accused the company of slowing down the construction of non-casino facilities, such as hotels and retail spaces, in favor of the casino floor itself. A group of 28 council members issued a statement asserting that “Continuing construction of the casino floor while slowing the hotel and other non-gaming portions does not eliminate those obligations.”
Bally's responded, stating, “We have held up, and will hold up, our end of the bargain.”
Additionally, the company has engaged in a dispute with the city council over the approval of video gambling terminals, which Bally’s claims violates its contract with Chicago. Some council members, however, suspect that Bally’s is using these terminals as a pretext to justify slowing construction. One representative remarked, “They’ve told their own investors that they are heavily leveraged, and that encumbrance could have a negative impact on their future operations.”
As of now, Bally’s is facing around $400 million in costs over the next two years for the completion of its permanent casino complex located at 777 W. Chicago Ave. The temporary casino housed within the historic Medinah Temple is reportedly not breaking even. In contrast, Penn Entertainment's new Hollywood casino in Aurora, Illinois, has reported revenues of $17.4 million in its first month of operation, amid a general decline in the state’s sports betting revenues, which fell 21% year-on-year in May.
