On a recent conference call, Bally's Corp stakeholders, including Chairman Soo Kim and Bally's Chicago board chair Wanda Wilson, provided an update on the company's planned permanent casino in Chicago. Lasting just eight minutes, the call aimed to clarify ongoing construction amid concerns from recent media reports suggesting that work had halted or slowed after an August update.
Kim emphasized Bally's commitment to the Chicago project, stating, "Construction continues every day, and there are approximately 1,000 skilled tradespeople working on the construction of the permanent Bally's Chicago resort." Although the casino is still slated to open in early 2027, adjustments have been made to how various development elements are sequenced to better meet the terms of the Host Community Agreement. Kim also announced plans for tours of the construction site for investors and shareholders.
Bally's Chicago president and interim chief financial officer George Papanier provided further details to Chicago City Council's License Committee, confirming that the venue will include an event center, 100 hotel rooms, and necessary food and beverage options, also scheduled for early 2027. However, he mentioned that around 12% of the project’s amenities are being reevaluated due to potential revenue impacts from video gaming terminals (VGTs), legalized by the city earlier this year despite opposition from Mayor Brandon Johnson.
Although Johnson has remained largely silent this summer regarding his confidence that the casino will open on schedule, he previously indicated support for projects like Bally's Chicago, emphasizing their role in fostering economic development across the city. In a recent social media post, he noted, "We appreciate Bally’s partnership and the thousands of construction workers helping bring Bally’s Chicago Casino to life – a major investment in our city’s future."
The Illinois Gaming Board had previously approved 65 VGT license applications in Chicago, highlighting the popularity of VGTs over traditional land-based casinos in terms of revenue generation. Papanier stated that the features of the Chicago casino being re-examined are in direct relation to the growing presence of VGTs, asserting that this could lead to a significant impact on revenues. He cautioned that it would be irresponsible to move forward without a clear understanding of VGT proliferation's implications.
Bally's stock reflected investor confidence, rising 7% to $9.84 amidst ongoing uncertainties in Chicago, where shares had previously fallen 30% in a month due to concerns about the company's future growth. This followed a troubling second-quarter earnings report and the resignation of former CFO Mira Mircheva in early September, leading to Papanier's interim appointment.
The current challenges regarding VGTs and the construction timeline are just the latest in a series of setbacks for Bally's since it acquired Chicago's sole casino license in 2022. There have been multiple work stoppages and an $800 million funding gap that was later bridged through a financing deal with Gaming and Leisure Properties. Other issues included potential conflicts with city water lines that required a redesign of the hotel plans, as well as a temporary work halt due to concerns about unapproved contractors linked to organized crime.
Bally's has been granted extensions on its project deadlines, with Illinois state law allowing for two-year licenses while the Illinois Gaming Board extended this to three years in 2023, pushing the deadline to September. Further extensions were secured through state legislation passed in June. Without these extensions, Bally's would have faced significant revenue losses by having to close its temporary casino at Medinah Temple until the permanent one is ready.
In addition to its Chicago plans, Bally's is advancing with its $4 billion Bally’s Bronx resort project in New York City, which is poised to be one of the three licensed casinos in the area alongside Resorts World New York City and Hard Rock's Metropolitan Park. Bally's announced a new financing deal worth $560 million with WhiteHawk Capital Partners to support the Bronx project and general corporate needs. This financing is expected to close in the current quarter, allowing them to progress in pre-construction plans essential for meeting their overall financing goals.
Construction is anticipated to commence eight to nine months following the acquisition of a license, which is expected to occur later this month, with a single-phase opening targeted for 2030 if all proceeds as planned.
